Trading The China Market with American Depository Receipts: How to Play Greater China with a Winning Edge
Introducing a new way to make virtually risk-free profits, Trading the China Market with American Depository Receipts teaches readers how to successfully trade U.S. listed American Depository Receipts (ADRs) of Chinese stocks . . . by using information that comes to light outside of Asian trading hours, but while the U.S. markets are still open. Filled with successful strategies for profitable trading made possible by interpreting business news to buy or short China ADRs before the information impacts those markets the next day, the book walks readers through this incredible opportunity step-by-step.
Filled with case studies that show the success of the strategies outlined, the book explains where to look for price-moving information. Aimed at investors of all types who have access to a brokerage account that can trade U.S. securities—including online brokers—Trading the China Market with American Depository Receipts is the ultimate guide to making money from China in your own backyard.
- Explains incredible new strategies for trading U.S. listed ADRs of Chinese stocks using information released after the Asian markets have closed for the day
- Includes case studies that clearly show how this strategy has worked and continues to work
- Features lists of relevant underlying shares and their corresponding ADRs
A low-risk strategy for profiting from foreign markets, Trading the China Market with American Depository Receipts shows how to use the U.S.-China time difference for profit.
PART I An Introduction to American Depository Receipts 1
CHAPTER 1 How I Discovered Making Money in China with American Depository Receipts (ADRs) 3
CHAPTER 2 What Are ADRs? 13
CHAPTER 3 Finding and Interpreting News to Enter the Market 39
CHAPTER 4 Trading ADRs 59
CHAPTER 5 Using Leverage Instruments to Enhance Return 77
CHAPTER 6 What Could Go Wrong? 89
PART II ADR Case Studies 99
CHAPTER 7 Case Study 1: An Earnings Surprise 101
CHAPTER 8 Case Study 2: Earnings Disappointments 111
CHAPTER 9 Case Study 3: Government Policy Changes 121
CHAPTER 10 Case Study 4: Material Company-Specific News 129
APPENDIX The Art of Decoding the Earnings Announcement 141
Paul Lau, Certified Public Accountant
About the Author 167
Alan Voon is the chief executive officer of Von Capital Limited and its associates at Warrants Capital Groups. Which are involved in asset management and capital market consultancy services. He is also the investment committee co-chairman of Huatai Von Malaysia Fund Segregated Portfolio, a Cayman Island fund established by Huatai Financial Holdings (Hong Kong) Limited, one of the largest stockbrokers in mainland China. Voon is a contributor to major newspapers and magazines on topics related to ADRs and derivatives such as warrants, convertible loan stocks, options, and CDDs. Voon is the author of Make Money Investing in Warrants on Bursa Malaysia and Money in Warrants. His website, www.warrants.com.my, caters to the South East Asia warrants and Greater China ADRs market.
Normally, investors who want to put cash towards a company listed on a foreign stock exchange will have to deal with additional fees related to the conversion of foreign currency into dollars and additional work of cross-border transactions in different trading time zones. For the price of a brokerage commission, they can now discover the best way to make money from China in their own backyard.
Malaysia’s premier warrants specialist Mr. Alan Voon has been able to consistently find and take advantage of capturing quick profits utilizing price-moving, after-market news from Asia to build positions in American Depository Receipts (ADRs) and their derivatives in the U.S. markets.
This unique trading concept was discovered in August 2010 when he traded a Chinese company’s ADR listed in the United States, and made money before the ADR prices reflected in the earnings news.
“Even when the global markets are well connected, there are still opportunities to benefit from information edge obtained from ADR’s home market news that is not immediately digested by traders in the U.S.,” said Mr. Voon.
For the first time, he shares his extensive experience in this field. In Trading The China Market With American Depository Receipts (Wiley, November 2012, ISBN: 978-1-118-31602-3, Hardcover, US $60.00) Voon provides practical knowledge needed to trade Chinese markets using American Depository Receipts (ADRs).
Trading The China Market With American Depository Receipts teaches investors how to successfully trade U.S. listed American Depository Receipts (ADRs) of Chinese stocks by using information that comes to light outside of Asian trading hours, but while the U.S. markets are still open. The book walks readers through this incredible opportunity step-by-step and reveals the secrets to profitable trading, made possible by interpreting business news to buy or short China ADRs before the information impacts those markets the next day. This book is for investors of all types, including online brokers, who have access to a brokerage account that can trade U.S. securities.
Trading the China Market with American Depository Receiptsincludes case studies featuring companies such as Genting Berhad, Hutchinson Whampoa Limited, Sinopec and many others—plus under-the-media’s-radar companies which investors should keep on their watch list!
This book is now available at Wiley.com and all leading bookstores and online book retailers. For more information, go to: www.wiley.com/buy/9781118316023.
Attention to media: Trading the China Market with American Depository Receipts online press kit is available here.