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No more hopes for China QDII fund investing in STI

do not under estimate China, they are 1 of the world huge reserve country.

the current fall is due to west now. China might be next Bull after this bear is gone.

 

Avoid all S-shares.. they are still above fair valuation. more downside risk.. unlikely to bottom out within these few weeks... any rebound will be a good chance to take profit or cut loss.

I may appear as an agressive bear here.. even some of my colleagues think so. but i do see the ominous disaster coming soon. be wary!! its just the start of the actual bear market.

dun just look at the stock market. Look at the macro view of the global economy especially wat is happening in US, Euro and Japan... whether u like it or not.. they will affect our economy. and economic health of the country depict the mkt movement in stock market.

invest at ur own risk. caveat emptor.

 

Is this something worth cheering for s-chip in sin?? Or it has becoming so routine that it will not cause any impact... It's quite irony that on one hand they are trying to curb inflation rate by hiking interest rate, and on the other, approving more funds to boost the sagging stock market..   March 8, 2008, 11.35 am (Singapore time)

China approves 5 new funds to boost markets Industrial Fund Management Co, Chang Xin and Galaxy asset management companies won approval for new stock funds on Friday, while two other firms, Huafu and Yimin, were given green light to sell funds for bond investment, the official Shanghai Securities News said without giving the value of their products. 'This was the fourth Friday in a row since Feb 15 that regulators gave approval for launches of new mutual funds, signally fund approval has become a routine due to volatility of the stock market,' the paper said. China's stock market has retreated since hitting a record high last October, battered by profit-taking and huge corporate fund-raising programmes. The benchmark Shanghai composite index has fallen nearly 30 per cent from its record peak of 6,124.044 points on Oct 24 last year to its close of 4,300.515 points on Friday. The China Securities Regulatory Commission resumed approving new fund launches in late January, after an informal suspension since September reflecting concerns about the country's overheated stock markets and rising speculation. -- REUTERS       SHANGHAI - China's securities regulator has approved the creation of five new mutual funds, including three mainly for stock investment, in an effort to support the sagging domestic stock market, a state newspaper said on Saturday.

 

 

Well, for everyone's good, hope it comes earlier.



 

 

 

Elfinchilde

Tks 4 ur insights n comment on the market.

 

S stocks in spore: look at charts. Not time for buying yet; hasn't bottomed out.

Besides, in a volatile market, it makes more sense to buy AFTER the bottoming (ie, on the turn up), than to risk trying to catch a falling knife. Case in point: yzj, yanlord. Ferrochina. Those who tried to average down yzj since it was 2.4+ will be crying now.

It simply does not make sense to keep averaging down and hoping for a rebound.

One does not play the market on hope. You play it on reality. M formation in place: longterm downtrend is confirmed.  

The rebound after will be to FA fair valuations. ie. 2-3x NAV. all the S stocks are above that, even now. Some are way above.  

caveat applies to all the above. Repeat same advice i've been saying since Jan: either go very long term, or very short term. Newbies looking to go long, may be wiser to stay out this coming week. What looks cheap today may very well seem expensive tomorrow.  

 

Put it simple, global stock market is on a big swing of volatility, similarly to S-stocks in SGX, previously up and then down, what will be next?........ of course will be up with a strong unexpected sudden buying sentiment of incoming QDII funds, since S- stocks correction so far has placed all their price level to a justified overshooted low level! Just my thought!!!

 

oh ok. so that's why the tech picture was what it is, and the global BBs were consistently selling. i was puzzled as to the reason.

just my interpretation based on technical facts: money flow has been out of s'pore. Earlier last year/this year, foreign funds poured in, mainly to the blues and especially the S plays, because they assumed the QDII funds would come in and rerate the stocks as growth stocks (ie, PE >50x is more than acceptable. which was what yzj, cosco etc were trading at).

but now with the delay, it means an FA fair value rerating back to normal fundamental values: ie, max 2x PE ratio.

which would explain the massive selling by foreign funds of STI stocks.

coupled with the US instability....eldar, would advise caution. China's SWF has to say what they are saying to avoid a massive panic in HSI and the region. Note the wording: "doesn't rule out". It is actually non commital. it also doesn't say "doesn't rule IN".

ie, a delay of QDII is likely.

 

i sure they will not tell u when they buy.....but after they buy...then they will tell u  .....they are just like us only want to buy cheap thing....

..... in long run all blue chip counter will go up...... 

 

 

Hey, no prob. that's wat forum is for.. sharing of information.. so that we can have more informed decision.. thankys eldar!!

 

Hi Bud,

hope u don't mind, just offering 2 sides to a coin

Business Times - 08 Mar 2008


China SWF denies halt in overseas investments

CIC chief risk officer says he was misinterpreted; fund to go portfolio route

(BEIJING) China Investment Corp, which manages the nation's US$200 billion sovereign wealth fund, has denied a Beijing Times report that it would temporarily halt overseas investments. The Beijing-based fund 'doesn't rule out' further overseas investments, chief risk officer Jesse Wang said in an interview yesterday. The newspaper report is 'completely false and a misinterpretation of my comments', he said.

CIC will suspend investments such as its earlier purchases of stakes in Blackstone Group LP and Morgan Stanley as it shuns risk, the Chinese-language newspaper quoted Mr Wang as saying earlier yesterday.

The fund spent more than US$8 billion buying stakes in Blackstone and Morgan Stanley last year.

The Chinese wealth fund will primarily make 'portfolio' investments abroad through external fund managers hired to oversee part of its assets, rather than direct stake purchases, Mr Wang said in the interview. CIC is recruiting global fund houses to help manage its equity and fixed-income investments overseas.

Mr Wang also questioned whether the International Monetary Fund's efforts to draft a code of conduct for sovereign funds would serve a useful purpose. CIC has exchanged views with the IMF on the matter, though it will wait for the code's final version before taking a stance, Mr Wang said.

'Will the code of conduct contribute anything meaningful? It's intended to increase market openness, but global sovereign funds have already been a very stable market force for several decades.' - Bloomberg

 

Copyright © 2007 Singapore Press Holdings Ltd. All rights reserved.

 

no worries brother, they said things according to market sentiments, now they say don't come, market crash, next day, they said, i am coming, and collect cheap...

 

 

Well i think ppl especially big fund mgrs woke up from the fact that QDII is not coming in anymore.. Saw this latest headline from reliable source. China govt suspended all QDII to foreign countries. Well, its not surprising cos sovereign funds are low investment fund with low risk tolerance. they will not invest highly into high alpha stocks or regions with very high PE or high valuation per se.

China Investment Corp suspends investments in overseas financial cos - report

BEIJING (XFN-ASIA) - Sovereign wealth fund China Investment Corp will suspend investments in overseas financial companies due to high investment risk, the Beijing Times reported, citing Wang Jianxi, a CIC executive vice-president.

'As sovereign wealth funds have low risk tolerance, investment in overseas financial assets, such as Blackstone and Morgan Stanley, will be suspended,' Wang said, referring to two companies CIC has invested in.

He said the CIC had invested less than half of the money it planned to invest abroad. After all planned investments are made, the ratio of high-risk financial assets will be diluted, accounting for a small portion of overall investment.

The CIC paid 3 bln usd for a 10 pct stake in the Blackstone Group in May ahead of the private equity group's initial public offering at 29.605 usd per share. Those shares, which are still locked up, closed at 15.05 usd yesterday.

He said the CIC does not pay much attention to short-term price fluctuations as the company has made a long-term financial investment into Blackstone and Morgan Stanley.

'We can make a gain not only from the stock price. And we can also achieve investment gains from dividends,' he noted.

Wang said that CIC may extend its investment horizon in Blackstone to 5-7 years from the minimum four years if investment returns from the private equity firm are good.

In addition, he added that CIC is not concerned about the problem of interest payments.

The fund has started to pay interest on bonds issued by the Ministry of Finance to fund its start-up.

zachary.wei@xfn.com - xfnzw/xfntm