HSI vs HSCEI

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  1. #1

    Join Date
    Feb 2019
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    HSI vs HSCEI

    I got it into my head over the weekend that I should increase my China exposure as diversification, but I don't really trust A Shares (I'm sure they will make money in the next decade, but I don't trust that it will make it back to shareholders).

    I thought HSCEI might be a good idea, and found the 2828.HK tracker ETF. But, compared to the HSI tracker - 2800.HK which has a 0.09% fee - this seems wildly expensive at 0.6%+ annual fee. What's more, as far as I can see, the two indices are very very highly correlated, so not sure about the diversification benefit.

    Any ideas about a good way to gain some China exposure via international markets, or is this just very hard to do cheaply?


  2. #2

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    Feb 2019
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    HK listing requirements are a little stricter (similar to the Nasdaq listed names), and the exchanges get involved more quickly in 'funny-business'.

    At least, they have been seen that way in the past.


  3. #3

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    A shares and H shares, assuming the same name, are fairly much the same. so if you are looking at 2318 and 1398 and the likes.. no difference between getting either one... if you are concern with capital control, then maybe, just maybe, you can say use the H shares..

    HSI and HSCEI are not that much different these days i think, after they started including 700 and the financial of H into HSI. The CSI300 referenced 2822 is probably the best choice to get pure china...