Saturday, September 20, 2008

Indices and ETF's to track Chinese market

Major China/HK market indices:

Name Bloomberg symbol Stocharts symbol Remarks
Hang Seng Index HSI:IND $HSI The most quoted index for the broad Hong Kong market
Hang Seng China Enterprises Index HSCEI:IND $HSCEI Chinese company index on HK exchange.  Also called H-shares.
MSCI China Tracker MXCN:IND N/A  
FTSE/Xinhua China A50 Index XIN50:IND $FTX Same as "FTX:IND" as the E-mini FTSE/Xinhua Index
FTSE/Xinhua China 25 Index FXC25:IND $FXT  
Shanghai Stock Exchange Composite Index SHCOMP:IND $SSEC For mainland China market.  The closest index outside China is A50 index.

ETF's on US/Hang Kong/Singapore markets:

Country Name Symbol Remarks
US iShares FTSE/Xinhua China 25 FXI Track $FXT
US ProShares Ultrashort FTSE/Xinhua China 25 FXP Bear market fund
US Morgan Stanley A Share Fund CAF Closed-end fund. I don't know which index it's tracking.  It seems close to A50 index.
US SPDR S&P China GXC Track S&P/Citigroup BMI China Index.
HK Tracker fund of Hong Kong 2800 Track $HSI.
HK iShares MSCI China Tracker 2801 Track MSCI China index (MXCN:IND)
HK iShares FTSE/Xinhua A50 China Tracker 2823 Almost the China mainland market.
HK Hang Seng H-share ETF 2828 Track $HSCEI
HK Hang Seng Index ETF 2833 Track $HSI.  Smaller lot size, smaller volume.
HK Hang Seng FTSE/Xinhua China 25 ETF 2838 Just the FXI in Hang Kong.
SG Lyxor Hang Seng 10US$ A9B Track $HSI.
SG Lysor China H10US$ P58 Track $HSCEI.  Just the 2828 in Singapore.

Comparison between SSEC and A50:

shcomp-a50

One can see that, it's better to buy A50 index or 2823.HK to chase the crazy China mainland market.

Comparison among MXCN, HSCEI and FXC25 (FXI):

mxcn-hscei-fxc25

They are similar but not precisely the same.  MSCI China index is similar with HSCEI.

If we put HSI, HSCEI, A50, and FXI together, one can see that in term of volatility, SSEC~A50 > HSCEI~FXC25~MXCN > HSI.

hsi-hscei-xin50-fxi

Conclusion:

  • China mainland market: 2823 in HK exchange, or CAF on US market;  Check $SSEC or $FTX;
  • China H-shares on HK market: FXI on US market; Check $FXT or $HSCEI;
  • Broad HK market: 2800 on HK market.  Is it really attractive since we can trade 2823 or CAF?

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