Chinese money pours into Japan-focused funds, triggering risk warnings

Two days ago:

"Nikkei closes at 33-year high on receding U.S. debt ceiling fears"

Hurray hurray!! Japan is back!

Today:

Nikkei hits 33-years high due to risky foreign money, fear abounds of over-valued stocks.

Oh no, Japan is back... in a new soon-to-pop bubble.

The Hua An Mitsubishi UFJ Nikkei 225 ETF has seen its assets under management more than double this year to 123.5 million yuan ($17.52 million).

This doesn't seem like a huge amount of money when you think about how much is traded everyday. This sounds like a bit of scare mongering, n'est pa?

Oh no, Japan is back... in a new soon-to-pop bubble

No, you are wrong. I was here during the bubble, and one HUGE difference between now and then, is that back then, damn near everyone was benefiting from the economy, prior to it bursting. Wages were through the roof, people were spending AND saving at the same time. It seemed like no one could do anything wrong.

Not this time around. No one is showing any confidence in the consumer market. The stock market is no longer a reflection of how the "public" feels about the economy. In fact it's a direct opposite to reality. Rising costs, ever stagnant wages, job instability, and other reasons that make the recent rise in the stock market an anomaly.

When profit takers start selling off, it's going to fall, just a matter of how far.

Stick prices are no longer a mirror image of the real economy. They have less and less to do with corporate performance and productivity. So don’t fret over share price fluctuations and invest in manufacturing, which is the key to healthy economic growth.

It doesnt get much better than this does it? Ironic isnt it? Glowing in the media attention of the G-7, a record breaking stock market, increasing poll numbers.

Kishida has got to be feeling like the proverbial pig rolling in the guano right now.

He's got to be having thoughts of a snap erection right about now! Ride it while he can.

Seems like his predecessors had pretty much the same good fortune too.

Not to forget, that it’s only a number value that still has to put into relation with the currency strength, which is low. If you really make the ‘win’ in practice, selling your stocks from the N225, then you now get a few yen more than originally hoped for, but you still can’t buy more on global markets at dollar or euro prizes.

No, you are wrong.... it's going to fall, just a matter of how far.

Sorry Yubaru, so you mean I should have said:

"Oh no, Japan is back... in a new not-nearly-as-big-but-still-a-bubble soon-to-pop bubble'

Chinese money is a dangerous tool of the CCP

So, when the US decides it needs to steal more money, and 'sanctions Chinese oligarchs to pressure Xi to...' (whatever they've whipped up) the US is going to crash the Japanese economy.

The investors in an EFT don't actually own the stocks that compose the EFT. The EFT owns the stocks. Investors buy a share in the fund. Those shares can be bought and sold like any other investment but the stocks underlying the fund are not bought and sold. Buying shares in the fund is essentially paying the fund manager(s) for their stock purchase and management of the stocks, buying and selling to match the performance of the Nikkei or whatever index they are trying to match. Shares gain or lose value based on investor opinion of what the index the fund mimicks will do. But even if there is a big sell off of the EFT shares that is not selling the underlying stocks. Not sure if that makes sense because it is complicated.

Money managers always send out warnings when investors pile into index funds -- they miss out on commissions and are reminded how the vast majority of them underperform the market, ie index funds.

On the other hand, these investors don't seem very smart if they're investing NOW, as in the middle of a boom. The Nikkei is up 19% this year already. Do they think there's still tons more upside? They should have started investing in the Nikkei when I did, in 2010.

The question arises is this a manifestation of the well known Chinese retail investors gambling on the stock market as has been seen often in the past or a deliberate ploy by the CCP as a financial weapon to destabilise the Japanese market/yen for some nefarious purpose?

The former wouldn’t surprise me as JeffLee pointed out above, now is the wrong time to invest the more so given the recent steep rise and the well known phenomenon of FOMO leads investors in to bad decisions. But given the CCP’S previous behaviour the latter reason can not be ruled out.

Here comes the hot money. Time to sell.

Chinese investors have been owning core assets in Japan for years! The LDP elites and Japanese ultranationalists seem to turn a blind eye and bash China verbally all the time. I highly doubt that the ruling elites of Japan ever care about Japan in the first place.

Typical hypocrisy of Japanese elites!

MarkX.....

This doesn't seem like a huge amount of money when you think about how much is traded everyday. This sounds like a bit of scare mongering, n'est pa?

Not exactly scare mongering but today's daily anti China post.... Scraping the barrel today..

Chinese investors have been owning core assets in Japan for years! The LDP elites and Japanese ultranationalists seem to turn a blind eye and bash China verbally all the time. I highly doubt that the ruling elites of Japan ever care about Japan in the first place.

Typical hypocrisy of Japanese elites!

Yup! Did the same thing with S. Korea only for us to find them in bed with the Moonies. Its not just the elites- The ultranationalists don't care about Japan either. I don't hear them protesting about the above Chinese investment even though it actually is dangerous for the country.

He's got to be having thoughts of a snap erection right about now! Ride it while he can.

Despite realising that it is a typo, it is not a very nice thing to read, especially while I am having breakfast ... ;)

I just realized! Didn't even catch it the first time. Makes it DOUBLY funny if you include the next sentence!

He's got to be having thoughts of a snap erection right about now! Ride it while he can.

Why? I don't see this as a signal that Japanese business is recovering. I think Chinese companies may want to buy Japanese companies with the hope of turning them around. The only thing likely to improve the value of many Japanese stocks is a foreign buyer for the company.

@Larr Fling, “The Hua A Mitsubishi UFJ Nikkei 225 ETF has seen its assets under management more than double this year to 123.5 million yuan ($17.52 million).” If they pull out those 18 million nothing absolutely nothing will happen… do you know what 18 mn even mean in an ocean of investment money? It’s basically nothing….

The Nikkei has gained 19% this year, with foreign investors in particular attracted by strong corporate earnings and signs of economic recovery.

You'd think they'd be more wary. The promise of an economic recovery has been spouted since '91. How can it recover when basically 1 in 3 are over 65 and heads remain buried in the sand of the 80s? Can only be long-term decline unless the entrenched system is completely overhauled, starting from the top.

Japan is very much like Germany in 1920s, when their country's economy is not actually owned by Germans. About the ultranationalist of Japan......Who knows who is who? There are many double spies in history who betrayed native country to help an enemy state because of ideological reasons : George Sorge, top Soviet spy who was a German. Kim Philby coldwar Soviet spy who was an Englishman.

The Hua An Mitsubishi UFJ Nikkei 225 ETF has seen its assets under management more than double this year to 123.5 million yuan ($17.52 million).

$17.52 million is not exactly going to cause the great depression now is it.

Japan should feel very grateful to China, such a generous neighbour put huge money pouring in investing their half dead stock market suddenly.

Japan should feel very grateful to China, such a generous neighbour put huge money pouring in investing their half dead stock market suddenly

That's like asking china to be very grateful to Japan for population reduction during WW2.

Japan should feel very grateful to China, such a generous neighbour put huge money pouring in investing their half dead stock market suddenly

That's like asking china to be very grateful to Japan for population reduction during WW2.

How are they alike?

JeffLeeToday  

On the other hand, these investors don't seem very smart if they're investing NOW, as in the middle of a boom. The Nikkei is up 19% this year already. Do they think there's still tons more upside? They should have started investing in the Nikkei when I did, in 2010.

Basically, markets cannot be forecast.

I remember the US Fed chairman talking.

about irrational exuberance about the stock market. The market continued to

perform very strongly over the next 4 years.

A bubble can continue for a very long time.

before bursting. Market timing as well as economic forecasts for that matter

are basically impossible.

The only thing that can be said with

certainty is that it was better to invest in 2010 than now!

well its reality you have to accept.

chinese money are coming to Japan everyday,even many banks starts to accept TT in yuan instead of USD or EURO.

i see no problem with that whatsoever.

Should ban it before it's too late. Tying your future to China is a losing game

17.52 mill huh. No kiddin. Is that even a big number?

I say– No way José!

Ok. Maybe its big numbers… for a 10 yen bandit.

Even Looting at it again I think hold on, $17.52 million… thats it? Thats all?

Front page news… Really?

Oh so "scary"…NOT

Sounds to me like a good ol saying that goes "CCheap votes, yea sure theyre cheap, but still votes"

So If your gonna talk scary yens. Big Boy yens. Just imagine the lifetimes of ¥2000 yen dinners a hungry

¥10 bandit can buy with 157 BILLION TAX yens~

Sorta kinda Sucks how 157 BILLION yens and all they got for it was that

1 round olympic stadium nobody uses…