China | China Tech
Share baskets trading
China | China Tech
Share baskets trading
General Description
The CMC Markets China Tech Share Basket tracks the performance of an initial 10 shares with exposure to China technology chosen by the Share Basket Review Panel.
The Share Basket was created with a base level of 4,000 as of 31 December 2019.
China Tech is one of the trending share baskets you can now trade on. Trading share baskets allows you to diversify your risk, so a sharp movement in one company’s share price doesn’t have a disproportionate effect on the overall holding.
US-China tech war: who will dominate future tech?
There is a technology competition taking place behind the ongoing US-China trade war, and the fight to gain this tech supremacy will have a far-reaching impact, along with huge commercial and national security advantages.
The so-called fourth industrial revolution – represented by 5G communications, artificial intelligence and quantum computing – is emerging among the world’s top technology giants, most of which are based in the US and China
Why trade on the China Tech basket?
There are a number of reasons for and against the potential of future technologies, and specifically for China tech.
THE BULLISH STANCE
- Technologies such as 5G communications, artificial intelligence and quantum computing represent the future of industry
- Asset-light technology organisations are replacing the traditional asset-heavy firms in industries like petrochemical, real estate, heavy industry and traditional retail
- Tech firms are fast-becoming the world's most profitable, fast-growing organisations, with huge and almost limitless potential
- Vast sums of money are being spent in the tech landscape – the US spent $110 billion on venture capital investment in 2018, while China spent $100 billion
- In 2019, technology stocks ended the year with huge gains, notably Apple (+ 77.8%), JD.com (+ 71.7%), Microsoft (+ 52.3%), Alibaba (+51.9) and Facebook (+ 51.3%)
THE BEARISH VIEW
- As the tech battle between US and China intensifies, there is potential for trade sanctions as these powerful countries, in particular, compete against each other in the technology race
- If a coronavirus-fuelled recession hits the global economy, this could affect research funding, supressing the potential for development
Index constituent weightings
| Component | Initial Weighting |
| Alibaba | 20.00 |
| Baidu Inc | 20.00 |
| 58.com | 7.50 |
| Autohome | 7.50 |
| Ctrip.com | 7.50 |
| iQIYI | 7.50 |
| JD.com group | 7.50 |
| Netease | 7.50 |
| TAL education | 7.50 |
| 7.50 |
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Review under Share Basket Disruption Event and Share Basket Rebalancing.
Trading hours
| Day | Trading hours |
| Mon | 14:30-21:00 |
| Tue | 14:30-21:00 |
| Wed | 14:30-21:00 |
| Thur | 14:30-21:00 |
| Fri | 14:30-21:00 |
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Trading hours shown in London local time, please check under product overview for more details
*Disclaimer: Century Financial Consultancy LLC (“CFC”) is Limited Liability Company incorporated under the Laws of UAE and is duly licensed and regulated by the Emirates Securities and Commodities Authority of UAE (SCA). Services offered by CFC include financial market products that are traded on margin and can result in losses that exceed deposits. Transactions or trades in the financial markets are very risky, and you should trade only with the capital you can afford to risk or lose. Before deciding to trade on leveraged products, you should consider your investment objectives, risk tolerance and your level of experience with these products. Trading with leverage carries significant risk of losses and as such margin products are not suitable for every investor, and you should ensure that you understand the risks involved and seek independent advice from professionals and experts if necessary. CFC is not responsible or liable for any result, gain or loss, based on this information, in whole or in part. Refer to risk disclosure on our website.