PGJ - Powershares Golden Dragon Halter China Portfolio (smart ETF)

[BigSully1]

About to break out to new high (10 cents). Amazing it took 21 days to bottom and only 7 days right back up. It'd usually be the other way around.

http://stockcharts.com/h-sc/ui?s=PGJ&p=D&b=5&g=0&id=p59958473366

Alot of diversity here (Chinese) without worrying about any one stock. Plus it's a smart ETF. 

[BigSully1]

09:25 MRKTX New Chinese Government Policies Puts Hong Kong Back in Play

The stratospheric rise in the Chinese domestic stocks markets continues to raise speculation the bubble has reached an unsustainable level. The Chinese government has been attempting to cool the markets and curb speculation for months. Undeterred, the local markets continue to move higher as retail investors continue to pour more money into stocks. But now, a change in government policy is putting the spotlight back on Hong Kong, where value can still be found. The Chinese government is now allowing individual retail investors to invest directly in the Hong Kong stock market. The new policies are expected to draw in significant inflows into the market, which historically has offered investors stability in a region known for its instability due to Hong Kong's stong economy, stable political environment, and defensive characteristics. An SG Securities trader estimates the government is going to allow $240 bln to be invested into Hong Kong by Chinese retail investors. Today, Credit Suisse equity strategist upgraded Hong Kong from MarketWeight to Overweight highlighting Hutchison, Wharf, MTRC, NWS, and HongKong Land as favored names. As a result, all of the major indices in Hong Kong have been trading higher, gaining materially overnight (between +3-6% across the board). The Hang Seng Index trades at a trailing multiple of 15.8x, inline with its 5-year historical average, while the "Red Chips" (Hang Seng China Affiliated Corp Index HSCCI) trades at 23.7x. But it's the H-Shares that remain the favored play, gaining 6% overnight (YTD +35). There has been a resurgence in buying interest in these stocks, sending the index to multi-year highs. The H-Share Index, which is comprised of state-owned Chinese companies, trades at 23.9x on a trailing multiple vs. the Shanghai A-Share Index at 50.6x and the Shenzhen A-Share Index at 70.0x. Furthermore, rising earnings expectations for H-share listed companies is only adding to the heightened interest in these stocks. Last month, mainland authorities allowed investors into the HK market on a pilot basis hoping the participation would lift valuations. The expected surge in inflows, coupled with the attractive valuations makes the H-shares the names to own. There are a number of H-Shares stock that trade as ADRs in the US, although the liquidity varies considerably. These include: ACH, BJCHF, CHL, CHA, CHOLY, CSDXF, DIPGY, GSH, HNP, JIXAY, LFC, PIAIF, PTR, SHI, SNP, AND YZC. For those who trade ETFs, the best way to play this is the Hong Kong iShares (EWH), as well as the Powershare Golden Dragon China Portfolio (PGJ) and the FTSE/Xinhua China 25 Index (FXI).

[BigSully1]

PGJ TOP 10 HOLDINGS ( 47.52% OF TOTAL ASSETS)   

Company Symbol % Assets
ALUMINUM CP CHIN ADS ACH 4.41
CHINA LIFE INS CO LFC 4.35
CHINA MOBILE LIMITED CHL 5.83
CHINA NETCOM GRP LTD CN 4.26
CHINA UNICOM LTD CHU 4.44
CNOOC LTD ADS CEO 4.54
HUANENG POWER INTL HNP 4.44
PETROCHINA CO ADS PTR 5.97
Sinopec N/A 4.36
Yanzhou Coal Mining Company Limited ADR N/A 4.92


EQUITY HOLDINGS   

Ratio PGJ
Average Price/Earnings N/A
Average Price/Book N/A
Average Price/Sales N/A
Average Price/Cashflow N/A


SECTOR WEIGHTINGS (%)   

Sector   PGJ
Software   
0.22
Industrial Materials   
9.39
Energy   
18.98
Utilities   
4.52
Hardware   
6.42
Media   
5.71
Telecommunication   
20.17
Healthcare   
3.43
Consumer Services   
2.07
Business Services   
23.84
Financial Services   
4.43
Consumer Goods   
0.81