How & Why: Exposing your etoro portfolio to the Chinese market
tldr: Hedge against my big bets, high growth potential, huge market, diversification
First of all, I am not a financial advisor. I’m merely sharing my opinions and views. This post is meant to get you acquainted with the different options on etoro and give you some handlebars into doing your research.
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This post will give you a handy overview of Chinese stocks on Etoro.
Why would expose your portfolio to the Chinese market?
18% of the world’s population live in China. This is the main reason to choose China to diversify my portfolio geographically from the USA and Europe.
Furthermore, I choose make use of the opportunities given by etoro when managing my etoro portfolio. This means I can take profits from short-term upswings in a specific market because I can open any position as low as 50 USD of value.
So apart from keeping my risk score low, hedging against the greater part of my portfolio (which is USA and Eurpean tech, very simply put) gives me the opportunity to take money from hedging positions and stock up on my favorite stocks, which are then on sale.
This is why I have a target of 7 to 9% Chinese exposure of my Etoro portfolio.
Start with stability (ETFs)
I will shortly start investing a dollar cost average amount of 1-3% in these ETFs:$
High growth potential tech stocks
Still figuring out which companies I’m going to invest the ‘Chinese part’ of my etoro portfolio in. For now I’ve invested just under a percent in Trip.com.ch as a COVID recovery play, and Tencent as an cloud computing play. Probably going to do BABA soon as well.
03690.hk - Chinese ecommerce giant
0700.hk - Tencent, the Chinese tech giant that, as opposed to Alibaba, seems to work well with Chinese governmnt
00763.hk - ZTE Corp, a telecommunications equipment manufacturer
00268.hk - Kingdee International, an enterprise application software company founded in 1993
0941.hk - China mobile, might be interesting as a dividend play
EDU - Chinese education tech company
GSX - Chinese education tech company
TAL - Chinese education tech company
0992.hk - Lonovo
02382.hk - Sunny Optical Technology, an integrated optical device manufacturer
NTES.ch - provides online games, web-based communication services, and interactive content in China
TCOM.ch - Trip.com.ch, also a possible COVID recovery play
BIDU - Baidu Inc. founded in 2000, Chinese tech giant
BILI - Bilibili
JD.us - JD, a Chinese electronic commerce company
BABA - Alibaba Group, the Chinese Amazon
AMAT - Applied Materials Inc
LRCX - Lam Research Corporation
00981.hk - Semiconductor Manufactoring
MRVL - Marvel Technology Group
Semiconductor stocks
Since I’m looking for between 6 and 8 % exposure to semiconductor stocks, I feel attracted to them in the Chinese part of my portfolio as well. Here are some Chinese semiconductor stocks available on etoro: