Crocs, Mindray and QDII

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The Crocs (CROX) stock is on a roll lately, as it’s closing 3rd quarter and holding two investor conference (link to webcast) in NYC and London. I added some more CROX last week when the escalator accidents is on the news. Another reason is I sold WX. I think both CROX and WX are good long term but I want to bet on “more sure” things.

Mindray (MR) has also done well lately. Incidently it’s also holding a conference in the US. At this time the fastest growth will from the US market. Chinese domestic market will also have some growth but the goverment still yet to roll out reforms in the health care (hospital) industry. Notheless I think (for the good or bad) Chinese patients still got to see doctors, so I’m not worried about MR’s prospect in China.

Another hot thing in China equity investing is QDII. QDII stands for qualified domestic institutional investors. Basically Chinese investors can buy QDII products offered by the banks, and banks in turn will invest the money in overseas markets (bond, or stocks). Lately this is hot as the “Open H shares to domestic investors”, combined with mutual fund getting QDII license (and quota). Those two events raised awareness of QDII.

The rapid rise of Shanghai composites index also encouraged some rational investors to move money overseas. Nobody wants to be the last guy to hold the hot potato. I read in the news Southern Fund oversold its QDII, it raised 49 b Yuan in its first day.

But if we think it more seriously, it will be a daunting task to manage it. It’s a $6.5 b fund after all (a large mutual fund in US standard). And they don’t have any direct overseas investment experience before that! I won’t put my hard earned money to an un-experienced team and hope them to bring back some magic return, will you 🙂

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