3049.HK Purchased

Today i purchased 3049.HK at around HKD6.13 per share.

This is a HK listed ETF tracking the shanghai composite index of mainland chinese companies. It is made up of 300 companies, with a heavy weighting in financials.  Whilst i'm aware of a number of issues with chinese banks (including credit quality, rapidly changing regulations etc), i believe these are largely priced in to the market already, and sentiment is quite low despite strong performance to date.

I decided to buy today following a significant drop in bank shares, following news of tightening wealth management regulations.  The holding is relatively small in comparison to my previous ETF purchases, but i plan to hold, regularly assess the risks and valuations, and potentially add to this position.

Although i had some indirect China exposure through my HK index purchase, this provides more direct coverage and fills one of the gaps in my portfolio.

The last couple of days have seen a pull back in equity valuations. I'll be keeping a close eye on the markets and may take the opportunity to make some further purchases.