And it was going so well - China

[Skyedriver]

My China Fund was up about 20% but now back to just above 0% gain.
Never thought that, even though it was in a bubble, it would drop this far with the chance of going much further still.
China is a manipulated market but the countries growth, whilst slowing is still pretty impressive compared to most western countries.
So do I stay in and wait for a return to positive or just bail out without loss. Or take this as a "buying opportunity".
I'm in for the long term.

[twinturboz]

There were warning signs, I don't personally follow the Chinese markets in detail but I recall large swing moves a few weeks back combined with stories of new trading accounts being opened at record rates and margin debt at silly levels, just yesterday there was news that you could now put your house up as collateral.

Imo China isn't necessarily an easy market for an investor, it's full of speculators and traders playing on high margins, some of the companies aren't exactly opaque, if trading is your thing I'm sure it would be a great market.

What you decide to do is your decision but the logical unemotional decision would be to get out especially if your lucky enough to get out now without a loss. It's hit a full on bear market, could get a lot worse before things start to stabilise.

Would you rather miss out on an upside move while still having your capital intact or try and catch the knife and risk fighting a snowballing loss.

Also and I apologise if it sounds patronising but you might want to go back and look over your strategy to figure out if there was anything you could have done differently to stop a 20% gain coming back to break even.

[Skyedriver]

Re your last sentence, yes I agree, but it's my (bad) habit of thinking "it'll turn around"
The Chinese Fund I am in seemed to be holding up despite the overall Index falling. That said, the index was oscillating between a -7% and plus 7% some days.
Long term I am convinced that the Chinese Market is a one worth holding onto but yes, it may still fall further.

Outside the Chinese Fund I have shares in QFI & Petra Diamonds both of which are long term holds BUT.......

Should have bought an old car instead....

[greygoose]

Everything is easier with hindsight! I think China will come good in the end but it could be a long time before my optimism is rewarded.

[twinturboz]

Seems like half the stocks are halted, that's probably a good thing judging by the fact it's down another 6%.
Hope it works out for you in the end.

[GT03ROB]

I'm guessing you've only bought very recently based on what you've quoted. IE you've bought in at a peak.

I've got a Chinese fund in my portfolio (), even with recent falls it's still up 35% on a year ago & still up 9% this year. Following past trends I suspect it will still have a way to fall.

[EricE]

Everybody is looking at Greece and its clowns politicians while the world's second largest economy is crumbling at an alarming pace and nobody seems to care. What am I missing?

Edited by EricE on Wednesday 8th July 12:45

[Shaoxter]

EricE said:

Everybody is looking at Greece and its clowns politicians while the world's second largest economy is crumbling at an alarming pace and nobody seems to care. What am I missing?

China is hardly crumbling
There's literally zero similarities between China and Greece right now.

This correction was coming, the Chinese stock market is irrational and it really is a herd mentality.

This is what happened in 2007/8, what's happened in 2015 is almost a mirror image...
http://finance.yahoo.com/echarts?s=000300.SS+Inter...

[toohangry]

EricE said:

Everybody is looking at Greece and its clowns politicians while the world's second largest economy is crumbling at an alarming pace and nobody seems to care. What am I missing?

Edited by EricE on Wednesday 8th July 12:45

A stock market isn't an economy.

[Mermaid]

toohangry said:

A stock market isn't an economy.

True, but profits influence more spending and the converse and that becomes the economy.

[toohangry]

Mermaid said:

toohangry said:

A stock market isn't an economy.

True, but profits influence more spending and the converse and that becomes the economy.

Profits aren't stock markets either.

[EricE]

toohangry said:

Profits aren't stock markets either.

are you suggesting that the ongoing stock market crash won't affect the chinese economy or are you just being a pedantic knob?

[Shaoxter]

EricE said:

toohangry said:

Profits aren't stock markets either.

are you suggesting that a stock market crash doesn't affect the economy or are you just being a pedantic knob?

In a developed economy yes, but in emerging markets there's sometimes a massive disconnect between the country's economy and the stock market which is mainly being used by speculators.

Remember all the biggest enterprises are state owned too.

[EricE]

NYSE just halted trading of all securities. Reasons are unclear, they cite technical issues. The full blown crash in China probably has nothing to do with it.

http://www.wsj.com/articles/u-s-stock-futures-fall...

buckle up!

[wilwak]

My holding in Fidelity Chinese Special Values has grown from 70p right up to £1.70 in the last year or so. Too much!

It's now fallen back to £1.28 this morning but the NAV is still around £1.60.

A good buying opportunity for a long term investor I'd say.

[toohangry]

EricE said:

toohangry said:

Profits aren't stock markets either.

are you suggesting that the ongoing stock market crash won't affect the chinese economy or are you just being a pedantic knob?

I'm suggesting that a stock market is a separate thing to the economy - you can have a crash for any number of reasons and quite often they won't affect the economy. In this case it appears (it may not be!) to be people taking profits in a big way and triggering a rush to sale. If this is the case, it has absolutely tit all to do with the countries economy. Yes they may be a slight knock on effect but that's not what we're talking about.

Perhaps reflect on that before calling people names like a baby.

[Skyedriver]

greygoose said:

Everything is easier with hindsight! I think China will come good in the end but it could be a long time before my optimism is rewarded.

Me too

[Skyedriver]

GT03ROB said:

I'm guessing you've only bought very recently based on what you've quoted. IE you've bought in at a peak.

I've got a Chinese fund in my portfolio (), even with recent falls it's still up 35% on a year ago & still up 9% this year. Following past trends I suspect it will still have a way to fall.

No but been drip feeding over the last 12 - 18 months

[worsy]

wilwak said:

My holding in Fidelity Chinese Special Values has grown from 70p right up to £1.70 in the last year or so. Too much!

It's now fallen back to £1.28 this morning but the NAV is still around £1.60.

A good buying opportunity for a long term investor I'd say.

What did you buy at though? I was in that from outset but bailed when it returned to profit. It's done well recently but I wasn't impressed with the management.

[twinturboz]

Nice bounce up to about 6%. Shame it's not a real bounce rather a staged recovery. I guess when 80% of the players are retail speculators you can't have them losing their money or they'll be protests on the streets.