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Gain access to China's financial markets

Gaining exposure to China’s financial markets is difficult for non-residents given the closed capital accounts in China. 

IG gives traders the ability to gain exposure to these normally off-limit Chinese markets through CFDs. 

Trading global share CFDs with exposure to China

There are significant trading opportunities in companies that source a large percentage of revenue from China. With IG, you can trade over 550 Australian shares as CFDs.

A few popular Australian share CFDs you can trade with IG which are more exposed to China sentiment include:

-  Fortescue Metals (Australia’s most popular China-themed stock, which last year sourced 98% of revenue from China^)
Iluka Resources (40% revenue from China)
-  Rio Tinto (35.4%) and
-  Horizon Oil (33.7%)

IG also offers 6000+ global shares CFDs with high exposure to China, giving traders the ability to express their view on China, as well as the booming E-commerce sector, and more:

WYNN Resorts (sources 72% of group revenue from China)
YUM! Brands (53%)
-  Qualcomm (50%)
Yahoo (due to its 24% stake in Alibaba)
-  Alibaba (China’s equivalent to eBay and Amazon and soon to list in the US)

Trading indices as CFDs

Trading an index gives you access to an entire basket of stocks, rather than one single share. IG offers a range of global indices which gives traders outside of China direct exposure to normally untradeable Chinese markets.

China A50 index

The A50 index is a market-capitalisation weighted index and represents the largest 50 mainland China companies.

China H-Shares index

This index represents 40 mainland Chinese companies on the Hong Kong Stock Exchange. The 30-day correlation between the H-shares index and the major Chinese stock index (CSI 300) is currently 60%.

Hong Kong HS50

This index is a mix of Chinese and Hong Kong companies, where the futures trade on the Hong Kong Futures Exchange. The 30-day correlation between the Hang Seng and the CSI 300 is 60%.

Trading forex with IG

IG offers over 80 FX pairs, including the AUD/USD and a large range of emerging market currencies that have strong two-way trade with China, such as the Korean won and Taiwan dollar.

USD/CNY

Since the beginning of the year there has been greater volatility in USD/CNY and clients have subsequently much more active in this pair. Traders are asking if the PBOC continue to weaken the CNY to promote growth and curb speculation, or has the weakness run its course?

AUD/USD

The AUD has diverged from traditional drivers such as iron ore and copper, however sentiment around the Chinese economy will always affect the Aussie.

Trading commodities as CFDs

IG offers an extensive range of metals, soft and energy-related commodities, including high grade copper and nickel.

 

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The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.