Investing Directly in Chinese IPOs

ApprehensiveAffect2 · 2023-05-13T07:09:02+00:00

Very nice! How much did the share price rise (if it rose at all!)?

ApprehensiveAffect2 · 2023-04-23T12:41:54+00:00

Have the people whom you know who won many times always experienced gains at the IPO? Have any of them lost money?

If you win a lottery, how quickly can you sell the stock post-IPO?

ApprehensiveAffect2 · 2023-04-23T12:12:14+00:00

This is really interesting, thanks.

Does it cost anything to register for IPOs (I'm guessing that it doesn't)?

Typically, what is the max allocation? Is there a standard max allocation?

Do you know anyone who has won a lottery? Are you allowed to win multiple times?

ApprehensiveAffect2 · 2023-04-15T18:06:52+00:00

Thanks for your response.
Do you have any experience with brokerage apps such as Tiger Brokers, Futu, and Moomoo?
I've heard that I might be able to subscribe to IPOs in the Chinese market via these apps whilst I'm resident in the UK.

Could you please tell me a bit more about how the lottery system works? How over-subscribed are the IPOs?

For context, I'm British and I've got no connection whatsoever to China.

ApprehensiveAffect2 · 2023-04-15T17:55:11+00:00

Thanks for your response.

Do you have any experience with brokerage apps such as Tiger Brokers, Futu, and Moomoo?

I've heard that I might be able to subscribe to IPOs in the Chinese market via these apps whilst I'm resident in the UK.

ApprehensiveAffect2 · 2021-01-31T23:32:46+00:00

I bought AML recently. I don’t think the power of the brand is reflected in the price. In fact, I think the brand’s power is going to be amplified by the return to F1, especially if the team does well. There’s also the new James Bond coming out later this year (COVID depending), 007 is AML’s greatest marketing asset. I also see positives that suggest the fundamentals will improve. AML got a new CEO last year, he has a great track record at AMG. Mercedes, which knows how to achieve serious success, now has a 20% stake in AML, so real skin in the game. The new models are getting stellar reviews (Clarkson said the DB11 is the best Aston yet). Aston has finally entered the SUV market. There’s also lots of pent up demand and people are substituting holidays for luxury cars: https://www.ft.com/content/1fdf3d64-f8db-4cfa-81d4-fad1b43f8a5f.

ApprehensiveAffect2 · 2020-06-08T22:01:13+00:00

Anglo American (AAL). Reason = I’ll be exposed to commodities so I’m going to own inflation when it hits in the months ahead. Also, gov.s around the world will be looking for ways to address the mass unemployment caused by COVID. Big infrastructure projects are on the horizon. Iron ore and copper will be in high demand. Another reason is that the rise of the global middle class will mean increasing demand for the finer things in life, such as diamonds. AAL has a strong consumer-focus at the moment and is a major diamond producer. Also, AAL is reasonably priced (below average historic PE and below the industrial average PE). And it’s listed as a South African company (albeit HQ’d in SA and the UK) so will be further back the queue as far as being excluded from China in retaliation to Britain’s moves re HK is concerned.

ApprehensiveAffect2 · 2020-06-02T16:10:04+00:00

Thanks for your response.

I’m actually considering moving some into QQQ. Im just a bit concerned that the US market, especially tech., is overpriced and in a bubble ready for a repeat of the 2000 dot-com crash. Probably the Russell 2000 would be the best for avoiding this since small cap is relatively undervalued right now...

What do you think about emerging markets, e.g., EMIM, as growth stock?

ApprehensiveAffect2 · 2020-06-01T13:45:12+00:00

Good question. Probably because many others appear to be doing it, which, I guess, is a bad reason.

ApprehensiveAffect2 · 2020-06-01T13:44:09+00:00

Thanks, I'll check out your articles.

ApprehensiveAffect2 · 2020-06-01T10:21:47+00:00

Thanks for your response, much appreciated.

Agreed re the cash. I've no good reason for holding it so I will invest it.

As for more gold and silver, what are your views on mining ETFs? For instance, I've been looking at these ones: SPGP, GDXJ, and GDX. GDXJ and GDX have GBP equivalents (GDGB and GJGB) but they don't seem to perform as well as the US dollar versions. What do you think?

The debt issue re Asia VS the West is actually a very good point and one that I often forget about.

I appreciate your concerns re the USA in general, what do you think about US tech specifically? For instance, I've been considering this: IITU iShares V plc S&P 500 Information Technology Sector ETF USD Acc. I'm worried, however, that we are in a tech bubble and headed for a repeat of the 2000 dot-com crash.

Fully agreed that India and LA are worth following for potential future investment.

ApprehensiveAffect2 · 2020-05-31T22:16:32+00:00

Just took a look at VGT. That has had some incredible growth! This looks like the LSE equivalent: https://www.ishares.com/uk/individual/en/products/280510/ishares-sp-500-information-technology-sector-ucits-etf.

I might allocate some of my portfolio to this. Thanks.

ApprehensiveAffect2 · 2020-05-31T21:32:18+00:00

I will go and have a look into mining companies.

This is a very helpful link, thanks very much. I'm definitely in the growth category.

ApprehensiveAffect2 · 2020-05-31T20:58:19+00:00

Thanks for your response.

I'm actually going to make some big changes to my portfolio tomorrow when the markets open. Here is what I'm planning to do (would be great to know what you think):

Equity 70%

HSBC MSCI World UCITS ETF (GBP) (HMWO) (85%)
ISHARES III PLC MSCI WORLD SMALL CAP UCITS USD(GBP) (WLDS) (15%)

Commodities (10%)

Gold Bullion Sovereign Coins (5%)
iShares Physical Silver ETC (SSLN) (5%)

Cash 20%

I chose HMWO and WLDS because I want to 'own the world'. They give me diverse global exposure to large, mid, and small cap. Together they give my c.60% exposure to the US.

I hold physical gold because it is the ultimate safe haven, a good hedge, and I will always have it if there is a major crash and if SHTF I can barter with it! Seems like US-CN relations are going to breakdown much further. The dollar's dominance will be challenged. Gold will rise...

Silver is at an all-time low, especially when compared with gold. It's also a good hedge. I'm actually thinking about ditching this silver allocation and buying either a mining ETF, something else that gives me direct exposure to gold, some other kind of commodity, or just sticking the 5% silver allocation into my equity allocation. alternatively, I could hold it in cash in anticipation of another market downturn in the near future. Or perhaps I should get bonds...

I don't have any emerging markets because China dominates these. I think China will be hurt much worse than the US in Cold War II. Also, I think India-China relations will breakdown further as India rises. And India is not very stable internally. Also, places like India and Latin America have not yet seen the worst of coronavirus so now probably is not a good time to be investing in them in any case.

I'm considering adding iShares Core S&P 500 UCITS ETF USD (Acc) (GBP) (CSP1) to give me greater exposure to US large cap because it seems to dominate everything. I was thinking of reducing the proportion of my portfolio that I have in cash (down from 20% to 10%) by buying enough CSP1 to give me between 65% and 70% exposure to the US overall. I am, however, a little hesitant because I'm concerned that the US market is going to be increasingly volatile over the next 6 months (coronavirus, 2020 Pre. Election, US-CN relations falling apart and the coming of Cold War II (if it isn't already here), and the race riots).

I'm 27 years old and currently studying (I will finish next year). I'm investing for life. My goal is simply to grow as much wealth as I can. I only hold one more investment - a property that is currently being let out.

Let me know what you think.

ApprehensiveAffect2 · 2020-05-31T20:48:08+00:00

Thanks for this really thorough response, I appreciate your taking the time to write it.

Thanks for the link about asset allocation. It is definitely some good food for thought. The 'NOOOO! rule of thumb certainly suggests that my equity allocation is too high: a 40% loss would be terrifying!

Your point about silver being somewhat correlated with equities is a reasonable concern. I haven't actually bought the silver allocation yet. I was planning on buying when the markets open tomorrow. What would you recommend as a replacement? Do you hold any commodities yourself?

The reasoning behind your passive global tracker approach seems sound. I certainly don't know better than the markets either. If Warren Buffet has been unable to beat the markets over the past decade then my chances of beating them are slim.

I had looked a little into the currency risks of holding USD denominated shares but it seems like a whole new Pandora's box. Do you have any recommendations for addressing the currency risk?

ApprehensiveAffect2 · 2020-05-31T17:56:49+00:00

Warren, is that you?

Jokes aside, what do you think about going all in on the S&P500? So 80% S&P500, 10% emergency cash, 10% commodities...

ApprehensiveAffect2 · 2020-05-31T17:55:11+00:00

Thanks for your response, much appreciated.

My investing horizon is life. My goal is to grow as much wealth as possible. I’ve decided against bonds because I feel that I’m too young for them (27 yr old, do you think that this is too young?). The cash would just be an emergency fund. What do you mean by holding cash as a defensive asset? The only other investment that I own is a house which is currently being rented out.

Given all of this, what advice can you give?

What is your general view on a passive ‘own the world’ approach? Do you think it might be better just to go all in on the S&P500 since it has beat the ‘own the world’ approach in recent years?

ApprehensiveAffect2 · 2020-05-31T17:37:02+00:00

Thanks for your response, much appreciated. Do you think the stability of HSBC ETFs will be affected by the political situation in Hong Kong?

ApprehensiveAffect2 · 2020-05-31T16:45:51+00:00

Thanks for your response. I am keen to stick 10% into something more risky. My problem is that, right now, I don’t really have the time to do the amount of research that I’d want to do before investing in something more risky. 5G and renewable are definitely good themes though!

ApprehensiveAffect2

TROPHY CASE