What is the H-share index?
The so-called H-share index consists of listed companies registered in China and listed in Hongkong. More than 160 domestic enterprises have listed in Hong Kong. In order to measure the stock performance of these companies, Hang Seng Index Company compiled the hang seng china enterprises index, which is what we now call the H-share index.
The H-share index * * has 40 constituent stocks. From 2000 to June 20 16, the H-share index rose from 2000 to 883 1, and the compound expected rate of return was about 13.5%. If the dividend effect is considered again, the compound expected annual income is about 13.5%.
Two ways to play with H-share index
I. Fixed investment of index funds
H shares are mostly financial and energy stocks. When the macro economy is depressed, the performance of such enterprises is not good, so the H-share index is in a low valuation state. However, the economic cycle will not always be at a low point. Once the economy recovers, the H-share index will gradually rise.
Therefore, direct investment in H-share index funds can start with fixed investment below 10 times P/E ratio. When the price-earnings ratio is higher than 13 times, you can consider selling in batches.
Two. AH stock exchange
There is a high degree of overlap between the constituent stocks of the H-share index and SSE 50, and there is a certain correlation between the index trends. Therefore, investors can rotate between these two indexes, and which index is lower will be rotated to that index, so that they can increase their holdings substantially and get additional expected returns without paying a penny more.
Ok, so much for the H-share index. I hope it will help you. Warm reminder, financial management is risky and investment needs to be cautious.