Jpmorgan China Growth & ... Share Discussion Threads

[nerja] 24/2/2021 10:15

Ok deadly followed in with toe poke bit at 693p , will add more tomorrow if they sell off again

[nerja] 24/2/2021 09:28

Stamp duty yes, but the new way the Chinese are going to select Hong Kong leaders could draw the crowds out again

[deadly] 24/2/2021 09:25

Politics? That's old news. It's the increase in HK stamp duty mainly.

[nerja] 24/2/2021 09:21

That November high , looks about 650 to 660 p level looks a good starting top up level, but the politics going on in Hong Kong just now it may drop lower.

[nerja] 24/2/2021 08:05

I will wait until it hits that 600p ish level by the way China is dropping

[deadly] 23/2/2021 21:22

Down almost 10% today at one point! Bizarre reaction to small drop in China. Good time to top up.

[barrie16] 16/2/2021 00:52

Logair

Never thought JPM CGI would motor this fast to over 800 pence. Amazing. Can it continue??

[diggerdog1] 14/2/2021 14:46

Thanks for that.

[loganair] 12/2/2021 20:10

Analysts’ favourite China funds:

Darius McDermott, managing director of Chelsea Financial Services pointed to the ‘excellent stock-picking track record’ of the team behind the Invesco China Equity fund and the high performance of the JPMorgan China Growth & Income (JCGI) investment trust.

[loganair] 12/2/2021 20:07

Chetan Sehgal, lead manager of the Templeton Emerging Markets highlights the country’s ongoing evolution from being a manufacturing-based economy to one driven by consumption and technological innovation, with clean energy another growth area.

‘China has evolved, and today the focus is on innovation and the consumer sector’s growing demand for technologically savvy services and products. We remain focused on names that are steadfast in their pursuit of achieving sustainable earnings power,’ he said.

‘We consequently favour firms in the consumer and technology-oriented sectors as they have created robust planks for sustainable earnings and are invested in those companies which have a wide range of products and offerings to meet changing demands of the consumer and enterprise.’

He cited internet giants Tencent and Alibaba as examples that have grown into household names.

Philip Saunders, co-head of multi-asset growth at Ninety One, said these ‘digital leaders already provide a glimpse of this future’. This transition from being a high-volume, low-value manufacturer into a consumption-led economy will take time, he said, but will be rewarding for patient investors.

‘[Economic] growth will be slower, but it should be higher quality and better in terms of returns to investors than the rapid growth of the past two decades,’ Saunders said.

The rise of the Chinese consumer is a long-running theme, but the scale of the potential opportunity was underlined by a report from Morgan Stanley last month. The investment bank upped its forecast of China’s consumer spending from $9.7tn (£7tn) by 2030 to $12.7tn, around the same amount American consumers currently spend.

But the bank’s analysts believe the way to play this is very much through local businesses, rather than the big US brands.

‘We think the average Chinese consumer will be a driver of change rather than merely a recipient of Western consumption trends,’ the report said.

There was evidence of this with the stratospheric rise of Chinese electric car manufacturer Nio last year. Embraced as the country’s version of Tesla, its shares rose more than tenfold last year as investors piled into clean energy stocks.

Green power is another growth story Sehgal is eyeing, with the Chinese government saying last year that it will become carbon neutral by 2060.

‘China has emphasised the adoption of solar panels in industrial infrastructure and wind power, with costs plunging as companies scaled up production with improved efficiency. This has resulted in increased adoption on the commercial side and enabled reduced government subsidies,’ he said.

‘China now leads the world in clean energy production and produces more than 70%of all solar photovoltaic panels, half of the world’s electric vehicles and a third of its wind power. Moving forward, we anticipate a widespread increase in the adoption of renewable energy technologies.’

TEM, which runs £2.5bn of assets, is currently holding around 30% of its portfolio in Greater China, which includes China, Hong Kong and Macau. Chinese equities were one of the best performers last year, with the Shenzhen index surging 38.7% in 2020, while the CSI 300 index, which tracks the biggest shares listed on the mainland, rose 27.2%. Both were comfortably ahead of the S&P 500’s 16.3% gain in the US.

Although by no means cheap, the valuations of Chinese shares are still attractive, Sehgal argued, although he stressed that the market

[loganair] 29/1/2021 22:01

The good news is already priced in to China's stockmarkets by Alex Rankine:


China has surpassed the US as the world’s leading recipient of new foreign direct investment (FDI), say Paul Hannon and Eun-Young Jeong in The Wall Street Journal. The US had held the FDI top spot “for decades” but last year saw inflows plunge by 49% amid the pandemic, while China’s advanced 4%.

FDI is a measure of direct business investment rather than financial market flows. For all the talk of decoupling and shifting supply chains, big multinationals are still ploughing money into the country, with Starbucks spending $150m on a coffee-roasting plant and AstraZeneca setting up a network of regional offices.

China’s latest financial liberalisation effort, meanwhile, is in commodity futures. China is the world’s biggest consumer of iron ore and copper but most prices are still set on exchanges in London and Chicago. Regulators recently launched a yuan-based copper futures contract that has attracted strong interest from overseas traders. It is easy to see why Western investors are keen, says Michael Mackenzie in the Financial Times. The local ten-year government bond yields 3.1%, far more than its developed-world counterparts. The local CSI 300 stock index gained 27% last year and is already up 4% in 2021. Investors are also being seduced by the growth outlook. China was the only major economy to grow last year, adds Freddie Hayward in the New Statesman.

“There are lots of reasons why investors should have exposure to China”, says George Magnus, of Oxford University’s China Centre. But “a lot of good news is already” priced in. Nor is the geopolitical backdrop encouraging, despite the departure of Donald Trump. China is still set to face a “hostile global environment”.

[dragonsteeth] 28/1/2021 15:56

Tencent and Alibaba both down 3% , anything much over that in terms of JCGI fall is overdone id say.

[deadly] 28/1/2021 12:14

Down over 10% this a.m. from the recent peak, so great chance to get back in at 725

[dragonsteeth] 18/1/2021 17:47

A startling 5% plus rise today, not sure I want that degree of volatility in my ITs , I’d be happy with that each month , but happy to ride the trend .

[deadly] 18/1/2021 17:16

It's called buying by investors. Whatever you think of them, they must appreciate the stellar past performance of this trust to drive it higher, and why not: there's no better around.

[arja] 14/1/2021 09:21

I fail to understand how this stock rises today on back of about a 2% fall in chinese index and a stronger pound against chinese currency. Expect the unexpected and even FCSS has risen a bit ! ( smile )

[arja] 12/1/2021 15:02

seems that the strong pound is holding it and FCSS back today although not up a lot in % terms .

[arja] 12/1/2021 08:20

dragonsteeth,
thanks a lot for your response which makes sense . With the chinese index rocketing today I am a bit surprised there is such a muted response from FCSS which was higher yesterday at one point before dipping .JCGI doing a bit better but a wide spread today, good luck ,

[dragonsteeth] 11/1/2021 13:29

loganair, I must admit it caused me to investigate Treasury transactions a bit further , no bad thing, and I wonder if it is an aspect that appeals to some investors compared to FCSS who are not doing it. It has the potential to restore the company’s distributable profits when the treasury shares are sold as the proceeds up to the original purchase cost are treated as distributable profits.

[loganair] 11/1/2021 13:13

Drag - My mistake.

[dragonsteeth] 11/1/2021 12:29

loganair, I may be showing my ignorance here but I read this as the opposite, that JCGI are releasing shares from Treasury for cash , not buying them back. Thus they are cashing in on the premium , receiving cash and reducing the number of shares in Treasury .

[loganair] 11/1/2021 10:21

It seems to me surprising and unusual that JCGI are buying back their own shares considering the trust has a premium to their Nav. Usually JP Morgan Investment Trusts only look at buying back shares when there is a Discount to Nav of more than 8%.

[dragonsteeth] 11/1/2021 09:32

No real theory arja, just a trust that I like. Dividend is about 3% which may appeal to some compared to FCSS.It’s currently at a premium , which for some can be a signal to avoid , for others it can be a reassuring sign that people too think it’s a quality IT and are happy to pay for it. Sometimes when momentum has been generated and continues those on the sidelines wish they’d bought earlier and plunge in with a FOMO mentality and up it goes again. Who knows , not me or I’d also know when to sell , so for now it remains a long term holding.

[arja] 11/1/2021 08:05

and still goes up as chinese indices fall . does anyone have a theory about this ?