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CoronaVirus Hits Chinese Stock Market: 2 Options to invest from India

by Abhishek   ·  February 10, 2020   ·  

You must be aware of coronavirus which has killed over 800 people in China. This virus has hit the Chinese economy as well. Many countries have banned Chinese citizens to come to their country. Tourism in China is badly impacted. Exports from China have also hit.

All this is reflected in the Chinese stock market as well. Chinese stock market is down by over 10% since the outbreak of Nobel CoronaVirus. This can be an opportunity for investors who wish to invest in China.

Some positive news flow is there which are indicating that the number of new cases of corona infection is declining and also the percentage of death of infected people is declining too. This indicates things should be better in the coming days, and this should have a positive impact on the Chinese stock market as well.

As an investor, you should not miss such opportunities to make money off this temporary dip.

How to Invest in the Chinese Stock Market?

You cannot directly invest in individual stocks of the Chinese stock market, but there is the Mutual Fund route and an ETF route through which investment can be done. Below are some of the mutual funds that invest in China and you can get into any one of them for great returns.

  • Edelweiss Greater China Equity Offshore Fund

This fund invests in JP Morgan Greater China Fund. The top 10 holdings of this fund which has half of the capital allocation are below:

Edelweiss Greater China Equity Off-Shore Fund portfolio
Source: MorningStar

The holdings in this fund are almost half of the value of the Chinese stock market. This fund can be bought for a return of around 10-17% of capital employed.

  • Nippon India ETF Hang Seng BEES:

The top 10 holdings of this ETF are:

Nippon India ETF Hang Seng BeES holdings
Via: ValueResearch

There can be liquidity issues with the ETF as they are not very actively traded. It takes up to 5 days to redeem your investment.

My personal recommendation would be to invest in the Edelweiss fund.

While Nobel CoronaVirus is gravely dangerous for human life, and one would think of not to make money out of an event that endangers human life, but as an investor, as a capitalist, one should not miss out on such opportunities to create wealth.

This is how investors become big by not missing out on money-making opportunities.

You can learn more about analyzing and investing in stocks fundamentally by joining our InvestorJi Academy or buy my book InvestorJi which has been a hit with investors over the past few months.

Note: This article is for information only. Kindly do your own research before investing.

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