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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Can you help us understand the value of holding an ETF such as VEE for foreign exposure and why it is highly recommended to own this ETF? Returns are low with high volatility. The ETF remains below 2018 levels when BABA and Tencent were ~30% less and they make up 12% of the portfolio. Maybe we are nuts but something seems amiss. Why not just buy BABA and Tencent instead? Are there other recommendations for capitalizing on Asian growth outside of China as we do not believe VEE is going to deliver returns for the expected growth in those regions.

Thank you for the great Service
Debbie and Jerry
Read Answer Asked by Jerry on August 26, 2020
Q: I know U.S listed Chinese companies are likely not your primary focus but I'm very interested in some of the tech based companies China is producing (KC.US specifically). I understand there are political risks but do you see 3-5 companies that you find VERY interesting as a mid-term hold? Or is this a space too filled with risk to bother?
Read Answer Asked by Robert on June 29, 2020
Q: Hi Team,
I am thinking to buy a small group of China US ADR as growth china group:
TCEHY - Tencent Holding
BABA - Alibaba Group
AACAY- AAC Technologies
XIACY - Xiamoi Corp
HKXCY- Hong Kong Exchange
I will not do it until Trump not going to delist them.
Appreciate your opinion on my List. Or am I crazy ?
Thanks as always and please deduct credits as needed !
Regards, Tak
Read Answer Asked by Tak on June 01, 2020
Q: I just read the following on CNBC news feed:

A bill that could force Chinese companies to give up their listings on American stock exchanges is now moving at “warp speed” in Congress, one analyst says.
“We believe it is only a matter of time before this bill (or something similar) is signed into law,” Raymond James analyst Ed Mills wrote.
The Senate bill would require companies to certify that “they are not owned or controlled by a foreign government” and allow the Securities and Exchange Commission to delist non-compliant firms.

They claim it is receiving bipartisan support as it would be political suicide to be seen as supporting Chinese interests and such a bill would help prevent issues such as the Luckin Coffee fraud.

I would be interested in your thoughts. I own TCEHY and wondered:
1) even though it is an ADR, I assume it would be effected by this?
2) I have to believe this negative perception of Chinese stocks will not go away anytime soon and will put downward pressure on TCHEY (or at best, mute its upside potential). Am I better to sell the stock and use the proceeds to purchase a high quality US tech company, and if so, what would you recommend - add to one of my existing positions of AAPL, GOOGL, CSU, KXS, NVDA, AYX, OTC, SHOP, SWKS,........or start a new position in one of your other favourites not listed here.

I have held TCEHY for a few years and am basically flat. It keeps teasing me with its potential but I do not want to be in a fight that is MAYBE bigger than than the stock and become emotionally attached to a position when there are so many good companies out there. Your sage adivce is most welcome
Scott
Read Answer Asked by Scott on May 22, 2020
Q: I have held TCEHY for some time and am roughly flat. With their strong presence in online gaming and AI, I wonder if TCEHY has a bright future ahead of it and I should continue to be patient or should I take this opportunity to trade up .....maybe to a US Tech company that has been beaten up (I already own KXS, CSU, OTEX, SHOP, CGI, AAPL, GOOGL) offering greater upside. Your thoughts.
Read Answer Asked by Scott on April 02, 2020
Q: Hello: I sold BABA and cut TCEHY holdings in half last week in a bit of a panic and would now like to know of any US stocks you might suggest to replace these two. I already own GOOGLE.
Thanks. Lesley
Read Answer Asked by Lesley on March 04, 2020
Q: Hi,
Looking to decrease the number of holdings in the above listed stocks. Which 2 would you sell?
Thank you,
Brent
Read Answer Asked by Brent on April 18, 2019
Q: I am thinking of shifting my portfolio to overweight Chinese equities such as Baidu, Ctrip, Iqiyi, NIO, JD.com, BABA, Tencent. I have a very high risk tolerance and these are all long term holds 10+ years if needed. Couple of questions, firstly any red flags in any of these names. Secondly, what do you think of Chinese equities in general? My thesis is that the Chinese market sold off aggressively last year and valuations look cheap. Trade wars seems to have been priced in and if we get some type of deal potential upside there. I know the economy is slowing, but I believe this is priced in also as thats all I hear almost on a daily basis from BNN, Bloomberg, CNBC, etc. Also, the possibility of stimulus and rate cuts seem bullish for the equities. Your thoughts? Thank you.
Read Answer Asked by Manoj on January 23, 2019
Q: I'm in China for a few weeks, and I am astounded at the payment system. The only place I've been able to use my Visa card is Starbucks. For me, everything else is cash, because I am not set up for the point-of-sale system here. Aside from the few foreigners paying cash, this is truly a cashless society. Each vendor has a scan code sticker - Purchasers use their phone, scan the code, and pay the bill in one easy step. Do you know which companies are behind this system?
Read Answer Asked by Kim on December 31, 2018
Q: Hi 5i,
I noticed that your recent answer to a question on Tencent came up under the TCEHY symbol for over the counter trading. The company is now trading on the NYSE under the symbol TME, which should make a better market for it in North America and free it up from the warnings about RSP suitability that usually come up with the over the counter stuff. Cheers!
Read Answer Asked by Lance on December 13, 2018