http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-chinese-stocks The Dangers of Trading Chinese Stocks The Shanghai and Hong Kong stock markets have been going up since the middle of last year. One of the reasons is that Chinese investors are taking money out of a faltering real estate market and jumping into a rising stock market. Westerners can invest in Chinese stocks via ADRs or directly in the Hong Kong market. But, what are the dangers of trading Chinese stocks? thestreet.com thinks that the Chinese stock market is ready for a fall. china has created a new cross-border investment channel called the shanghai-hong kong stock connect, which will enable investors in hong kong and the mainland to trade a specified range of listed stocks in each other’s market. the shanghai stock exchange’s benchmark equity index is up 23% on the year through april 9 and has jumped 94 percent over the last 9 months. valuations on chinese tech stocks have surged to an average 220 times reported profits, the most expensive level among global peers. there is 1.1 trillion yuan ($180 billion) of debt outstanding that has been used buy stocks in shanghai. emerging market stock guru mark mobius, executive chairman of templeton emerging markets group, thinks the chinese stock gains are unsustainable. bearish wagers on the shanghai stock exchange have climbed more than threefold in the past nine months and reached a record 7.46 billion yuan ($1.2 billion) on april 9. Although Chinese stocks have had a good ride there are now numerous dangers in holding or trading Chinese stocks The Asian Stock Bubble We have been concerned for years about the collapse of a Chinese real estate bubble. Now as real estate is deflating in China those ahead of the curve bought stocks. Anyone who bought Chinese stocks last year ought to be looking at getting out. bloomberg concurs as it notes that Asian stocks are all bubbly. it’s only april, but 2015 already seems to be the year of the asian stock bubble. in addition to mainland china’s bubbly markets, the region is dealing with two other equity booms that don’t jibe with economic fundamentals. in hong kong, gains are racing well ahead of global rallies even as china’s slowdown accelerates. mainland companies listed in the city jumped another 4.3 percent monday, even after news of an unexpected 14.6 percent plunge in chinese exports in march. the hang seng index — which grew 7.9 percent last week — has also been unaffected by the mainland’s sputtering real estate market. and something similar is happening with japan’s nikkei market. the country’s economy is limping out of a recession, and bank of japan officials have been bracing for disappointing inflation numbers. yet the stock market is trading near 20,000 for the first time in 15 years. It would appear that investors are under the impression in both Japan and China that government actions will support both markets in t

1. The Dangers of Trading
Chinese Stocks
By www.ProfitableTradingTips.com

2. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
The Shanghai and Hong Kong
stock markets have been going
up since the middle of last year.

3. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
One of the reasons is that
Chinese investors are taking
money out of a faltering real
estate market and jumping into a
rising stock market.

4. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com

5. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Westerners can invest in Chinese
stocks via ADRs or directly in the
Hong Kong market.

6. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
But, what are the dangers of
trading Chinese stocks?

7. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
thestreet.com thinks that
the Chinese stock market is
ready for a fall.

8. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
china has created a new cross-
border investment channel called
the shanghai-hong kong stock
connect

9. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Which will enable investors in
hong kong and the mainland to
trade a specified range of listed
stocks in each other’s market.

10. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
1- The shanghai stock
exchange’s benchmark equity
index is up 23% on the year
through april 9 and has jumped
94 percent over the last 9
months.

11. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
2- Valuations on chinese tech
stocks have surged to an
average 220 times reported
profits, the most expensive level
among global peers.

12. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
3- There is 1.1 trillion yuan ($180
billion) of debt outstanding that
has been used buy stocks in
shanghai.

13. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
4- Emerging market stock guru
mark mobius, executive chairman
of templeton emerging markets
group, thinks the chinese stock
gains are unsustainable.

14. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
5- Bearish wagers on the
shanghai stock exchange have
climbed more than threefold in
the past nine months and
reached a record 7.46 billion
yuan ($1.2 billion) on april 9.

15. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Although Chinese stocks have
had a good ride there are now
numerous dangers in holding or
trading Chinese stocks

16. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
The Asian Stock Bubble

17. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
We have been concerned for
years about the collapse of a
Chinese real estate bubble.

18. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Now as real estate is deflating in
China those ahead of the curve
bought stocks.

19. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Anyone who bought Chinese
stocks last year ought to be
looking at getting out.

20. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
bloomberg concurs as it notes
that Asian stocks are
all bubbly.

21. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
it’s only april, but 2015 already
seems to be the year of the asian
stock bubble.

22. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
in addition to mainland china’s
bubbly markets, the region is
dealing with two other equity
booms that don’t jibe with
economic fundamentals.

23. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
in hong kong, gains are racing
well ahead of global rallies even
as china’s slowdown accelerates.

24. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
mainland companies listed in the
city jumped another 4.3 percent
monday, even after news of an
unexpected 14.6 percent plunge
in chinese exports in march.

25. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
the hang seng index — which
grew 7.9 percent last week —
has also been unaffected by the
mainland’s sputtering real estate
market.

26. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
and something similar is
happening with japan’s nikkei
market.

27. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
the country’s economy is limping
out of a recession, and bank of
japan officials have been bracing
for disappointing inflation
numbers.

28. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
yet the stock market is trading
near 20,000 for the first time in 15
years.

29. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
It would appear that investors are
under the impression in both
Japan and China that
government actions will support
both markets in the absence of
sound fundamentals.

30. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
The dangers of trading Chinese
stocks right now lay in betting on
more gains.

31. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Don’t Trade What You
Cannot See

32. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Our long term concern about the
dangers of trading Chinese
stocks is their lack of
transparency.

33. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
There is too much that is hidden
in the land of Communism and
managed capitalism.

34. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
To a degree the situation is
reminiscent of Japan in the late
1980s when their economy
seemed set to take over the
world

35. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
And then a mountain of hidden
loans came to light and the
country has dealt now with a
quarter of century of deflation.

36. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
China ETFs

37. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
bloomberg business reports on
the Chinese stock rally
and China ETF investors.

38. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
u.s. investors are now returning
to the ishares china large-cap etf
after it jumped 24 percent since
mid-march, adding about $90
million on april 10 for the biggest
one-day inflow since august.

39. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
the fund tracks the 50 largest
chinese stocks trading in hong
kong.

40. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
another blackrock inc. fund, the
ishares msci china etf with $2.3
billion in assets, has attracted
$636 million this year to provide
investors with exposure to the
hong kong rally.

41. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
the msci etf invests in 140
companies listed in the former
british colony.

42. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
Trading ETFs in the USA is one
means of reducing the
transparency part of trading
Chinese stocks.

43. http://profitabletradingtips.com/trading-investing/the-dangers-of-trading-
chinese-stocks
But the underlying issue is that
this is a market poised to falter
and anyone trading Chinese
stocks needs good information
and should pay careful attention
when these markets start to
collapse.