China A50 ETF purchased #2

With the PRC equity markets having under performed for some time, I added some more units in the China A50 ETF (HK:2823) to the privateportfolio this morning. I paid an average of HK$12.68 per unit. This compares with the HK$13.56 paid in October 2010 HK$13.56 paid in October 2010 .

While it has to be acknowledged that China is facing some economic issues with rising inflation squeezing business margins and monetary tightening, there are also some positive economic developments, including the continued expansion in domestic consumer demand, rising wealth levels and Western China playing catch up with the rest of the country. There is also the possibility that the restrictions on property investment may result in more money being invested in the share market.