Why You Should Invest In China Stocks | Top 6 China Stocks In 2021

Most of us do not understand China, but if you look slightly deeper, you’ll realize that China is a sleeping Tiger who has a lot of potential. They are the world’s second largest economy, is very advanced now and is looking to be the tech leader in the future. In this video, I’ll share with you a few reasons why you should invest in China stock, and which stocks you can look into. Enjoy!

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0:00 - Introduction

1:04 - Why Invest In China?
1. Large population. That means there’s a very huge growth opportunity for companies there. At the same time, many of the people in China are moving from lower class into middle class.

2. Company moat. Company moats gives competitive advantages to a company. China’s company has a very unique moat, and the moat is the government. If you look at many of the chinese companies, they do not have to compete with US companies in China, because China blocked those companies.

3. China expanding influence. China has also been steadily increasing its influence overseas. The biggest plan is their belt and road initiative. China is building ports, roads, railways and even airports, across many countries. Besides that, they also have been strengthening their ties with many countries.

3:33 - China stocks
1. Alibaba. Alibaba is often referred to as the Amazon of China. Even though Alibaba revenue is much lower than Amazon, but it’s gross merchandise volume is much larger than its competitors.
https://bit.ly/3ibF453
https://bit.ly/2HzJLt4

Alibaba's revenue growth has been strong, and is expected to continue growing by the double digits well into mid 2020s. The company owns many businesses like Youku, South China Morning Post, Lazada, AI, cloud computing, internet services etc. Alibaba wants to achieve 10 trillion yuan gross domestic volume and to serve 1 billion customers by 2024.
https://bit.ly/3i8rz6a

2. JD.com. Another e commerce company, but JD operates on a different business model than Alibaba. First, JD doesn’t take on inventories..Second, JD has a very strong presence in the supermarket category. D announced that they plan to open 1000 supermarkets in China.
https://bit.ly/30cETjR

The company has also been expanding their logistic network, which they offer to other companies, and has also started using next gen delivery solutions, like using drones and autonomous delivery vehicles.

3. Tencent. Tencent is an investment company, involved in many different industries. They own wechat, a messaging, social media and mobile payment app. Also in cloud computing, ai, online music and it even has a film production company. However tencent is best known as the world’s largest game publisher in terms of revenue, owning many of the world’s game companies. Tencent’s revenue growth has been extremely Godlike over the years and analysts are expecting the revenue growth to continue on.

8:05 - Risk of china stocks
If you are investing through the US market, there’s a risk that these companies will be delisted. And if you are investing through the Hong Kong stock exchange, you’ll have to be careful about currency risks as Hong Kong’s future is very uncertain. To avoid these risks, you could invest through an ETF or index fund.

9:23 - China ETFs
1. CQQQ. Over the past 10 years, CQQQ has delivered a 10.46% return on average, and has a total expense ratio of 0.7%. This ETF focuses on communication services and consumer discretionary. It has 95 holdings. If you see everywhere around you, you’ll see that it is technology and communication services everywhere.
https://bit.ly/3346sxC

2. KWEB. Kweb has delivered a 15.10% annualized return, has an expense ratio of 0.73%. It focuses on consumer discretionary and communication services. Between the 2, I would prefer CQQQ because it has more holdings.
https://kraneshares.com/kweb/

3. MSCI China ETF. It represents the entire chinese stock market, it has a dividend yield of 1.62%, expense ratio of 0.59%, delivered 5.05% annualized return. This ETF lags behind S&P500 by a lot, but that’s because US companies are already very mature. While many of the China companies are founded in the past 20 years. With China growing strong, and these companies expanding out of China, there is a possibility that MSCI China ETF will outperform S&P500 ETF in the future.
https://bit.ly/2RZaMrI

Видео Why You Should Invest In China Stocks | Top 6 China Stocks In 2021 канала Kelvin Learns Investing