Trading Chinese stocks
Now I've the software to analyze and trade Chinese stocks, I'll look at the possibility to scan and trade Chinese stocks at night.
This is the place I got the software. My brother and friends have accounts with them.
http://www.bhzq.com/Service/default.aspx?skins=softdownload
Most Chinese stocks are NOT allowed to daytrade. If you bought it today, you have to hold it overnight or several days, you cannot sell it right away, they called it 0+1 or 0+7 stocks. However, trading stock warrants are not subjected to this restriction. I might look at the stock warrants to trade, there are a handful of stock warrants in Chinese stock market, not many. No stock options.
Another strange rule is they would stop trading a stock if it drops or gains too much for a day (10 or 12%).
Even though the Chinese stock market was hot, I still think the U.S. market is where to trade. You got 7:1 $ to Yuan Exchange ratio, for every dollar you gain, you could exchange it for 7+ Yuan, you can also trade stocks in margin, that's another leverage. No margin trading in China.
4 comments:
Welcome Back. I am again going to thank you for your tip from three years ago on ABEW. It has been a long road, and after the Zigbee Alliance screw up that delayed the program for two years, Airbee has survived. I beleive they are about to announce their financing, have hired a new COO, and from all of my contacts I know things are going well. Not exactly a stock a daytrader likes, but with over a million shares of it at 0.21, I am going to love it.
PT, another thing trading chinese stock is if you make a roundtrip, 1.4% of your equity is gone as commissions and taxes. It is not just a fixe commission and year end tax.
So, say, if you have 1 million in cash, and if the stock you purchase is break even, after about 70 roundtrips, you are left with nothing. And, they do not allow short.
The best way to invest in the hot economy in China is real estate or some mutual fund if the stock market dropped bloody, like yesterday.
Inflation is on the verge of out of control, and with all the poisonous planned economy and the horrible talent retaining record, inflation will be out of control soon. Next time, when you are back to china, do not be suprise at 50 yuan per kilo pork, and 2 million apartment everywhere in Beijing.
Let's chat more over the phone on my view on this trend of development and how we can profit big from it.
EMM...
Is there a way to translate this site for those of us that don't speak chinese?
PT
Are you posting to your blog anymore? Hope all is OK.
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