Guide to Financial Spread Betting on the Chinese Stock Market
Clean Financial - The Financial Spread Betting Website
China Enterprise Spread Betting

China Enterprise Spread Betting


Where Can I Spread Bet on the Chinese Stock Market?


You can spread bet on the China Enterprise index with: You can currently spread bet on the China A50 index with:

Chinese Stock Market Updates


Date Trading Update
30-Jan-15 [8:11am]

China A50 Futures Report

  • The China A50 is currently trading at 10,470.
  • Overnight, the market closed -25pts (-0.23%) lower at 10,640.
30 Minute Indicator Analysis

Falling Stock Market The stock market is trading below the 20 period moving average of 10,602 and below the 50 period moving average of 10,637.

1 Day Indicator Analysis

Neutral Stock Market The stock index is currently below the 20 day moving average of 11,135 and above the 50 day moving average of 10,150.

Update by Gordon Childs, Editor, CleanFinancial
20-Jan-15 [3:58pm] European Stock Markets

The fact that the IMF cut its global economic growth outlook just after Chinese growth prospects looked a little rosier than expected helped add some confusion to the picture of global growth.

This allowed attention to switch back to the upcoming ECB policy announcement.

The International Monetary Fund has cut its growth forecasts for the global economy on the back of a slowdown in China, ongoing weakness in the Eurozone and an impending recession in Russia.

The premise of a slowdown in China is not incorrect but the fact that China's growth rate beat expectations on the same day the IMF cited China as the reason for their growth downgrade took the edge off the report.

The IMF is still expecting a growth pickup this year from 2014 levels, partly thanks to the boost to consumers from lower oil prices, but believes the troubles outweigh the benefits and so has cut growth from its previous forecast made in October.

An expansion of 7.4% in 2014 was the slowest pace of growth in 24 years for China and misses the growth target set out at the beginning of the year by the government.

In the light of the housing slowdown domestically and the sluggish demand for Chinese goods from Europe it seems likely the government will lower its growth target for 2015 to closer to 7%.

Growth at these levels leaves Chinese authorities teetering on the edge of stimulus and reforms; the Chinese know that any stimulus introduced now will just delay and possibly harm the transformation from an export-oriented to a consumer demand-driven economy.

As seen from the response in Chinese equities since the November rate-cut, more stimuli will likely be welcomed by markets.

Another day another rate-cut, this time it was European-neighbour Turkey cutting rates in response to political pressure ahead of June elections after growth was shown to slow to 1.7% year-over-year; well below the government's 4% target.

There were also signs of a slight slowdown in inflation to 8.17%, but that is still well above the central bank's 5% target.

Mining companies Glencore, Anglo American and Fresnillo responded positively to Chinese economic reports and were topping UK stock markets.

Falling oil prices as well as a positive read-through from strong Delta Airways earnings meant IAG and easyJet were top risers.

William Hill shares jumped after a glitch led to results being released Monday night by mistake.

However, the stock then rolled over on Tuesday after a soft fourth quarter thanks to unfavourable sporting results took the edge of a generally successful year from the World Cup.

Update by Jasper Lawler, Market Analyst, CMC Markets
20-Jan-15 [5:27am] Chinese Growth Falls Just Short of Target

Concerns about a sharp slide in Chinese stocks after the strong gains seen in recent weeks has fuelled fears about a bubble in Chinese equity markets, after the recent stimulus measures announced in November.

It was hoped that these measures will have helped put a floor under the recent slowdown seen in some of the recent Chinese economic data in recent months, and this morning's economic data does seem encouraging even if it flies in the face of recent PMI data and should be treated with some scepticism.

About a year ago Chinese authorities insisted that they would hit their 7.5% GDP target for 2014, but it became quickly apparent that they would struggle to hit that target, as slowing demand for commodities, of which China is one of the biggest consumers, showed that the economy was starting to stutter.

With copper and crude oil prices at multi year lows, it is therefore quite a surprise to see the latest Q4 GDP number come in at 7.4%.

Furthermore the latest industrial production and retail sales numbers for December also beat expectations, with industrial production coming in at 7.9%, while retail sales came in at 11.9%, both well up from November.

These numbers are particularly encouraging given the recent stimulus steps taken by Chinese policymakers in November, however, they remain some way from their objective to rebalance the economy away from manufacturing.

Even so domestic demand has still slipped from 13.7% at the end of 2013.

Update by Michael Hewson, Senior Market Analyst, CMC Markets

» For more see Stock Market Trading News & Analysis.

Readers please note:


Advert: Chinese Stock Market Spread Betting Guide, sponsored by FinancialSpreads.com.
You can spread bet on the China Enterprise with Financial Spreads.


Where Can I Spread Bet on the China Enterprise for Free?


Investing, by its very nature, does involve risks, but if you would like to open a Test Account, where you can trial spread trading on a wide array of markets, then see below for further details.

When considering which trading option might work for you, don't forget that, in the UK, financial spread betting is tax free*, i.e. it is exempt from income tax, stamp duty and capital gains tax.

If you're trying to find a free trading platform, you should keep in mind that you are able to take a position on the China Enterprise without having to pay any commissions or brokers' fees with firms such as:

Free Demo Account


If you are interested in an entirely free Test Account where you can try out spread betting, and markets such as the China Enterprise, then have a closer look at: The spread betting firms listed above provide a Test Account that lets investors test new strategies, study charts and practice with an array of orders, e.g. OCO and GTC orders.


How to Spread Bet on the China Enterprise

How to Spread Bet on the China Enterprise?


As with a range of financial markets, an investor can place a spread bet on stock market indices, like the China Enterprise, to rise or fall.

Looking at capital spreads, you can see that they are offering the China Enterprise October Futures market at 9623 - 9643. Therefore, an investor could spread bet on the China Enterprise market:

  China Enterprise Spread Trading Example Closing above 9643, or
  China Enterprise Spread Betting Example Closing below 9623

On the settlement date for this 'October' market, 30-Oct-12.

Whilst financial spread trading on the China Enterprise index you trade in x per point. So, if you choose to have a stake of 4 per point and the China Enterprise moves 24 points then there would be a difference to your P&L of 96. 4 per point x 24 points = 96.

For short term trading on a range of indices also see Indices Rolling Daily Spread Betting.


China Enterprise Futures - Stock Market Spread Betting Example


So, if we consider the above spread of 9623 - 9643 and make the assumptions:
  • You have done your analysis of the markets, and
  • You think that the China Enterprise index will finish higher than 9643 by 30-Oct-12
Then you may buy at 9643 and risk 2 per point.

Therefore, you win 2 for every point that the China Enterprise index pushes above 9643. Of course, you will make a loss of 2 for every point that the China Enterprise market decreases lower than 9643.

Thinking of this in a slightly different way, if you Buy a spread bet then your P&L is worked out by taking the difference between the final price of the market and the price you bought the market at. You then multiply that difference in price by the stake.

Subsequently, if, on the settlement date, the China Enterprise market settled at 9706, then:

Profit = (Closing Level - Opening Level) x stake
Profit = (9706 - 9643) x 2 per point stake
Profit = 63 x 2 per point stake
Profit = 126 profit

Speculating on stock market indices, whether by spread trading or otherwise, is not easy. In this case, you had bet that the Chinese stock market index would increase. Naturally, it can also fall.

If the Chinese stock market had fallen and China Enterprise closed lower at 9588, then this means you would end up making a loss and losing money on this market.

Loss = (Closing Level - Opening Level) x stake
Loss = (9588 - 9643) x 2 per point stake
Loss = -55 x 2 per point stake
Loss = -110 loss

Note - China Enterprise October Futures spread betting price accurate as of 26-Sep-12.


How to Spread Bet on the China A50

How to Spread Bet on the China A50?


As with a range of financial markets, an investor can place a spread bet on indices, like the China A50, to rise or fall.

Looking at a financial spread betting site like IGIndex, we can see that they have priced the China A50 October Futures market at 7330.0 - 7370.0. Therefore, an investor could spread trade on the China A50 market:

  China A50 Spread Betting Example Settling higher than 7370.0, or
  China A50 Trading Example Settling lower than 7330.0

On the closing date for this 'October' market, 30-Oct-12.

Whilst placing a spread bet on the China A50 index you trade in x per point. So, should you decide to invest 4 per point and the China A50 moves 23 points then that would be a difference to your P&L of 92. 4 per point x 23 points = 92.

For short term trading on indices also see Indices Rolling Daily Spread Betting.


China A50 Futures - Index Trading Example


Now, if you consider the above spread of 7330.0 - 7370.0 and assume:
  • You have done your market analysis, and
  • You feel that the China A50 index will finish higher than 7370.0 by 30-Oct-12
Then you may go long of the market at 7370.0 for a stake of, for example, 2 per point.

So, you make a profit of 2 for every point that the China A50 index moves above 7370.0. Having said that, such a bet also means that you will lose 2 for every point that the China A50 market falls lower than 7370.0.

Put another way, if you buy a spread bet then your profits (or losses) are worked out by taking the difference between the settlement price of the market and the price you bought the market at. You then multiply that price difference by your stake.

Therefore, if, on the settlement date, the China A50 market settled higher at 7465.8, then:

P&L = (Final Level - Initial Level) x stake
P&L = (7465.8 - 7370.0) x 2 per point stake
P&L = 95.8 x 2 per point stake
P&L = 191.60 profit

Speculating on indices, whether by spread trading or otherwise, doesn't always go to plan. With the above, you had bet that the Chinese stock market index would go up. Naturally, the index could decrease.

If the Chinese stock market fell, and the China A50 closed lower at 7281.6, you would end up making a loss on this spread bet.

P&L = (Final Level - Initial Level) x stake
P&L = (7281.6 - 7370.0) x 2 per point stake
P&L = -88.4 x 2 per point stake
P&L = -176.80 loss

Note - China A50 October Futures spread betting market quoted as of 10-Oct-11.


Where Can I Find Live Spread Betting Prices and Charts for the China Enterprise?


If you would like to access real-time prices and charts for the China Enterprise, you will probably require a spread betting account. Readers should note that opening an account is subject to credit, status and suitability checks.

Should your account application be approved, you can log on and analyse the up-to-the-minute prices/charts. On most platforms, these will be provided as part of the service. So what's the catch? You might get the odd sales letter and/or email from the relevant online spread betting provider.

Of course, if you do spread bet then, before starting, be aware that financial spread trading does carry a high degree of risk and it's possible to lose more than your initial investment.

Although the charting packages differ from provider to provider, to help your trading analysis, the majority of charts come with useful features and tools that include:
  • An array of time intervals - 2 minutes, 1 hour, 1 day and so on
  • Different chart views - line charts and candle charts
  • Drawing options and features - Fibonacci time zones, arcs and fans
  • Technical indicators and chart overlays - Moving Average, Parabolic SAR, Average Directional Index and so on
Charts on CapitalSpreads also offer other benefits:
  • BackTesting and Analysis functions
  • Automatic alerts that trigger when the markets reach a specific level

FinancialSpreads indices candlestick chart

China Enterprise Trading Guide - Example Chart


The following spread trading firms give their account holders access to real time trading charts/prices:

Advert: Chinese Stock Market Spread Betting Guide, sponsored by FinancialSpreads.com.
You can spread bet on the China Enterprise with Financial Spreads.


Trading Risk Warning
'Chinese Stock Market Spread Betting Guide' edited by Jacob Wood, updated 30-Jan-15

For related articles also see:





Free Financial Email Updates
Q) Average Trading Results?

A) Get free trading tips, offers, price updates, important news and more!
All Free - Click here!


Risk Warning

Home
Capital Spreads
City Index
ETX Capital
Financial Spreads
IG Index
InterTrader
Spreadex
Spread Betting Tips
1) Daily Trading Tips
2) Financial Tips
3) Financial Tipping
4) Strategies
Spread Betting News
Daily Analysis
Daily Closing Update
Daily Market Data
Live Charts
Live Prices
Trading Videos
Stock Market Spreads
Stock Market Reports
Stock Market Analysis
Stock Market Charts
Stock Market Prices
FTSE 100 Spreads
Dow Jones Spreads
DAX 30 Spreads
Forex Spreads
Forex Reports
Forex Analysis
Forex Charts
Forex Prices
EUR/USD Spreads
GBP/USD Spreads
Commodities Spreads
Commodities Reports
Commodities Analysis
Commodities Charts
Commodities Prices
Gold Spreads
Crude Oil Spreads
Shares Spreads
Share Tips
Share Trading Reports
Share Charts
UK Shares
US Shares
Spread Betting
Bonds Spreads
Interest Rate Spreads
Spread Trading Blog
Financial Fixed Odds
CFD Trading
Trading Features
Trading Forum
Technical Trading
Free Newsletter
Why Spread Bet?
What's Spread Betting?
Trading Glossary