Why Smart Money Is Investing In Hang Seng Index Right Now4 min read
Okay, before you give your speech about an Atmanirbhar Bharat, we ask you to keep an open mind and hear our industry experts from a logical mindset rather than an emotional one – why should you consider Chinese stocks as a small part of your portfolio and why are big investment firms investing in the Hang Seng Index right now.
Bringing to you a Video discussion with some renowned personalities in the world of finance:
Akshat Shrivastava (Entrepreneur, Investor, Content Creator educating millions about Crypto Assets, Stock market and Careers through his YouTube channel – Akshat Shrivastava)
Siddharth Srivastav (10+ years of experience in stock markets and financial services & Head of ETF products, Mirae Asset Investment)
So, let’s address the narrative that is made up by journalists that only India can grow while China will be left stagnant. And this is far from the truth!
Let us don our rational hats, as our expert Akshat Shrivastava explains to us that all Global Economies like the US, China, Russia and India are all interdependent on each other, and in order for one to grow the others will have to grow as well i.e. China will grow.
It is also important to address that we do believe in India’s great future prospects and that the major part of our portfolio is into domestic investments. However, that does not mean that a small part of it should not be in other countries as well – since we already know the diversification benefits that global investments have to offer. So, if you want to be a smart investor you need to start investing outside India as well!
Reasons why smart money is investing in China right now
Attractive valuations
When we think of global investments, we always first consider the US because it is the economy that we are most updated with and home to some of our favorite companies like Amazon, Apple, and Facebook. In the current market scenario, the way that US markets have rallied has reduced the opportunity for great returns and almost all top companies are trading at premium valuations. On the other hand, Chinese stocks like Alibaba, Tencent, and Xiaomi are good businesses which have taken a lot of beating recently due to covid 19, economies reducing dependence on China & the Evergrande crisis. Panic selling has obviously taken place which has created opportunities for intelligent value investors.
Think Long Term
If you have ever studied the history of China, you will realize that China has been one of the richest and fastest-growing regions of the world throughout human civilization. And to make the assumption that they will not continue to do the same due to these short term sentiments is an illogical assumption. The intelligent investor always looks for long-term value and doesn’t pay attention to the noise.
Directional government
Obviously the way China is ruled by the government doesn’t appeal to us, we couldn’t possibly picture that happening in India. But the truth is, that this formula has worked for them for decades and has made China the powerhouse it is today.
Our expert Siddharth Srivastav from Mirae Asset Investment who is currently running the Mirae Asset Hang Seng Tech ETF does a great job explaining the risk and reward of Chinese investment and how you can start investing internationally.
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