Why China Fund losing money ..

Most investors have been asking why China funds are losing money. Let us have a look at the fact/ fund information listed below.

Look at the date of share information above [13/07/2009], and observe the pricing of individual share. Exchange rate was 0.46477 and NAV at 0.17144.

 

Look at the date of share information again now [14/07/2010], and observed that the pricing is going up in HK$. However, HK$ is pact to USD which exchange rate of RM with USD has been strenghten over time in a year which indirectly pull the HK$ exchange rate against RM to drop. Even though the fund is performing, unfortunately it drags to about the same pricing as last year, 0.17331. Overall, investing in a fund which tagged to a country particularly will have currency exchange risk.

For those who can read mandarin, newspaper above stating RM strenghtening over a year.