China introduced an extensive economic stimulus package to address slower-than-expected growth and stabilize key sectors like real estate. This stimulus, estimated at 7.5 trillion yuan about $1.07 trillion USD, aims to boost consumer spending, support the property market, and revitalize financial markets.
Key measures include significant cuts in mortgage rates for existing loans to relieve household financial burdens, with an expected average rate reduction of 0.5 percent, potentially benefiting over 50 million households. Additionally, the minimum down payment for second homes was reduced from 25 percent to 15 percent nationwide, making it easier for individuals to invest in property.
Brokerage Outlook
Following this, as per sources Goldman Sachs said that Chinese shares have the potential to gain about 20 percent over the next 12 months as the authorities step up measures to support the struggling economy.
Ace Investor Vijay Kedia View
According to ET now, ace investor Vijay Kedia has revealed that he is investing in the Chinese equity market, he has already allocated 2-3 percent of his capital in Chinese stocks and is open to increasing this to 5 percent. He continued by stating “I am bullish on Chinese shares, China is the new story. I think Chinese stock should do well going forward,”
He confirmed that he has sold and exited from some of his portfolio stocks, including Patel Engineering, to invest in Chinese shares. He has purchased a basket of Chinese shares through China-based Mutual Fund Exchange Traded Funds (ETFs) to invest in the Chinese markets
Listed below are two Mutual Funds/ETFs through which you can invest your money in the Chinese Stock Markets.
Edelweiss Greater China Equity Offshore Fund Direct-Growth
The Edelweiss Greater China Equity Offshore Fund – Direct Growth primarily invests in equities of Greater China, including stocks from China, Hong Kong, and Taiwan. It primarily invests in the JPM Greater China-1-12 USD.
It targets long-term capital growth, appealing to investors who want exposure to the dynamic but volatile Chinese market. The fund typically invests in sectors such as technology, finance, and consumer goods, leveraging the potential of these fast-growing industries.
The Edelweiss Greater China Equity Offshore Fund Direct-Growth fund has a fund size of Rs. 1,474.10 Crores with an NAV of Rs. 44.13 and a minimum sip amount of Rs. 100. It has delivered a return of 12.66 percent in the last six months and 20 percent in one year.It has an expense ratio of 1.4 percent
Axis Greater China Equity FoF Direct Growth
The Axis Greater China Equity Fund of Fund (FoF) Direct Growth is an open-ended international equity mutual fund that primarily invests in the Schroder International Selection Fund Greater China X Accumulation, targeting equities in China, Hong Kong, and Taiwan.
This fund aims for long-term capital appreciation by focusing on these Greater China markets, while also keeping some exposure in debt and liquid instruments to manage liquidity.
The Axis Greater China Equity FoF Direct-Growth fund has a fund size of Rs. 254.70 Crores with an NAV of Rs. 8.16 and a minimum sip amount of Rs. 100. It has delivered a return of 12 percent in the last six months and 17.58 percent in one year. It has an expense ratio of 0.54 percent
Written by: Bharath K.S
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