I am a believer of China stocks, but I have much caution. If I were to answer your question, I feel you should hold on to China SOEs to continue your perpetual stream of dividends. Banks and Oil majors are averaging 7-8% yield and that is an immense yield based on current climate. Its very possible to build a FIRE income based on the china SOEs on only a $1 million portfolio.
On the topic of carry trade, I have seen individuals who has utilised the strong Sing Dollar and weak SG interest environment to borrow SGD and buy HKD SOE shares. The outcome is that it has been an immensely profitable trade, as compared to the conventional borrowing in SORA (at 4.8% interest) and buying Mapletree REITs and other SG REITs (which yields 5+%)
In terms of banking industry in China, it is difficult for the 4 largest SOEs to collapse because of its implications and they are of better balance sheet strength
Just be careful of any policy switches by the communist government. Nevertheless the beat down in China share prices are too good in my view. I may suffer one-two years of no dividend but the chinese government is unlikely to throw cold water that the animal spirit suddenly freezes up.
<vested in Alibaba and Petrochina>
On the topic of carry trade, I have seen individuals who has utilised the strong Sing Dollar and weak SG interest environment to borrow SGD and buy HKD SOE shares. The outcome is that it has been an immensely profitable trade, as compared to the conventional borrowing in SORA (at 4.8% interest) and buying Mapletree REITs and other SG REITs (which yields 5+%)
In terms of banking industry in China, it is difficult for the 4 largest SOEs to collapse because of its implications and they are of better balance sheet strength
Just be careful of any policy switches by the communist government. Nevertheless the beat down in China share prices are too good in my view. I may suffer one-two years of no dividend but the chinese government is unlikely to throw cold water that the animal spirit suddenly freezes up.
<vested in Alibaba and Petrochina>