YoungForest's blog

Recently everyone seems to have heard about the high premium of on-exchange QDII funds. Premium means that the market price of an on-exchange fund is higher than the NAV of the off-exchange fund. Crazy examples include US 50 ETF (SH513850), which once reached a 30+ point premium, and Nikkei ETF (SH513520), which reached 20+ points. Ordinary ones also had two points. Fund companies and brokers all issued statements warning about the risk of excessive premiums. High premiums attract arbitrage capital, which then smooths out the premium. Arbitrage here means subscribing to the fund off-exchange, transferring it on-exchange, and then selling it. If the fund neither rises nor falls, one can at least earn the premium. Under normal circumstances, because of the market’s own adjustment mechanism, normal funds with large scale and high trading volume, such as many CSI 300 ETFs (SH510300), have almost no premium. But QDII funds, because of foreign-exchange limits and other constraints, often have purchase limits, small scale, and low trading volume. Arbitrage capital cannot freely and infinitely operate, so premiums form very easily.

In previous years I happened to buy some off-exchange QDII funds (S&P 500 ETF SH513500, Nasdaq 100 SH513100, and China Internet ETF). Previously I bought and sold them directly off-exchange and never thought about transferring them on-exchange for trading. Although the arbitrage threshold is not that high, it is still not low for beginners, and the operation is much harder than ordinary fund purchases. The recent high premiums aroused my great interest, and I searched quite a lot of information and tutorials online. It was not as easy as imagined, and there were not as many resources as imagined. Therefore I summarize it here for future reference. I use my off-exchange “E Fund e-Wallet” and on-exchange “Huatai Securities ZhangLe Fortune” as examples. Other off-exchange fund platforms and on-exchange brokers are broadly similar. I previously sold so many QDII funds directly off-exchange. What a loss.

1. Query the fund TA account. On the “E Fund e-Wallet” homepage, go to “Me” -> “Account Settings” -> the third item from the bottom, “Fund Account.” Shenzhen accounts are 12 digits starting with 98, and Shanghai accounts are 12 digits starting with 99.

2. Establish the connection between the off-exchange and on-exchange accounts. In “ZhangLe Fortune,” tap the bottom “Account” button, then at the bottom choose “More Functions,” and search for “On/Off-Exchange Correspondence Maintenance.” Processing time is trading days Beijing time 9:15-15:45. Connect your own account.

3. Ask the securities branch for the exchange seat number: six digits for Shenzhen and five digits for Shanghai. In the broker app you can get the contact information of your branch and account manager. My account manager added me on WeChat when I opened the account, so I asked directly on WeChat. The reply was quick.

4. Transfer custody on the fund account. You must log in to the official website; the mobile app does not work. Click “Details - Transfer Custody” after the fund shares you hold. The number of shares must be an integer. It takes two working days to arrive in the broker account. “ZhangLe Fortune” also has a “Fund Off-Exchange to On-Exchange” service, available on trading days Beijing time 9:30-15:00, but it could not find my fund shares. My understanding is that only funds bought off-exchange through the broker account can be transferred there. Funds bought through the fund company or third parties such as Alipay, banks, Danjuan, or Xueqiu cannot be transferred there; they must be transferred out from the corresponding platform.

5. After arriving on-exchange, the shares can be sold directly on the secondary stock market. Compared with selling off-exchange, this earns the premium.

Douban link

I came to this book from another programmer’s GitHub book recommendations. It is a very small book that can be finished in one day. It reads very interestingly and provides some unique methods and cases for thinking about problems and solutions. It is very enlightening. Especially when combined with some experiences and history from my own life and work, the mutual confirmation is very interesting. Many past confusions and troubles disappear. For example, people verbally say they want to solve a problem, but in fact many people do not truly want to solve it. If you help them then, you are doing hard work with no thanks. Discovering their real problem is instead more important. Many problems originate from certain people. Therefore, if you stay away from them, many problems and misfortunes disappear: for example, bad bosses and partners, family of origin, and so on. However, for an orderly S-type and J-type person like me, this is still hard to operate and hard to adapt to, but the inspiration is enormous. N-types and P-types can probably learn a lot from it, and it suits them very well. Interestingly, the author was probably a programmer from the previous century, and many examples and stories are related to that. Although it was only a few decades ago, for the computer industry it is already the medieval period.

The whole book is made up of short essays and short stories. It was originally the author’s submissions to a newspaper column, Southern People Weekly. Thinking about what happened to the Southern Media Group and its current state, compared with its peak 15 years ago, really makes one sigh. These pieces were later collected into this book. Because of that, its discussion of any single topic or story is not particularly deep or detailed. Compared with Lin Da’s A Close Look at America, it falls far short. Still, I recommend every citizen, especially Chinese people interested in civic movements, to read it. The barrier to reading is very low, and it is quite direct and interesting. The book was published in 2009, and mainly consists of stories written between 2001 and 2008. The situation both inside and outside China has changed greatly over the past 15 years, so some parts may be outdated or unrealistic. But that does not affect its value for reading today. Back then people could still reflect and speak. Now everyone is already silent with fear. Especially recently, in January 2024, TW also held its election, making “minzhu” once again something people are interested in and reflecting on. Although the current situation may be getting farther and farther away from what the author hoped for, I just hope everyone can stay safe. When the world changes, perhaps these early public figures can still shine and contribute. In short: go read it, but do not speak.

There are really many sharp lines and ironic contrasts.

“Democracy” without freedom will eventually pupate into totalitarianism wearing the face of populism.

As an new immigrant in Ireland, it is very common that you move every year. It is painful to move. It makes the situation worse because many things in Ireland are related to your address. This post summary the actions you need to take after you move to a new address. It would prevent you from missing any important mail, which could be posted to your previous address if you forget to change your information somewhere.

1. Bank accounts.
2. Broker accounts.
3. Pension accounts.
4. Medical insurance.
5. Revenue.
6. Car registration.
7. Your employer’s portal.

For some accounts which are related to your job, like pension, Company stocks, you need to contact your HR to change your address.

Douban link: Guns, Germs, and Steel: The Fates of Human Societies

Why is today’s international society the way it is? This is also the question asked in the book by Yali, a native farmer from New Guinea. Eurasia and the settler societies of Eurasians, such as North America and Australia, dominate. The proximate cause is the Age of Exploration that began in 1492: Europeans brought guns (and horses), germs, steel (various technologies), and advanced political systems such as states, opening the colonial era. Together with the Industrial Revolution in Western Europe, this laid the foundation for Western society’s leading position today. The later rising stars are East Asia (Japan, South Korea, China), South Asia (India), and Southeast Asia (Vietnam, Indonesia). Some have already become developed countries, while others are developing very quickly. Africa, especially sub-Saharan Africa, remains poor. These proximate causes are obvious and much discussed.

So what caused these proximate causes? The secondary proximate causes were the development of agriculture and technology, which led to population growth and made it possible to support non-farm specialists such as craftsmen, further promoting technological development and institutions such as bureaucracy and the state. The author is committed to tracing the ultimate causes: geography and the ecology closely related to geography. In other words, “geographic determinism”. 1. Environmental differences: each continent had different plant and animal resources available for domestication. 2. Eurasia’s axis is east-west, while Africa and the Americas are north-south, affecting the speed of diffusion and migration. 3. The spread of plants, livestock, and technology between continents. The Americas and Australia were relatively isolated from the rest of the world, sub-Saharan Africa was next, and China’s East Asia was also relatively independent within the Eurasian landmass. 4. Differences in the area and total population of each continent.

A candid review of work, life, and growth in 2023, followed by clear goals for 2024.

Douban link: Life and Death Are Wearing Me Out

Is the rating this high? When I was in high school, Mo Yan won the Nobel Prize in Literature. At that time I followed the trend and read quite a few of his novels, such as Big Breasts and Wide Hips and Forty-One Bombs. Thinking back to the reading environment then, it was actually very interesting: someone bought a book, and then everyone in the class who was interested took turns borrowing and reading it. In university I also continued reading Frog. Mo Yan’s novels always let one read out a feeling of being oppressed by society and the times. They also strongly reflect the hardship and helplessness of peasants, and are a ruthless satire of social change. Against the backdrop of today’s worsening speech environment, I hope more people can read these books, and that these books can live a little longer.

Read: the plot is good, and the character relationships are quite complex. It involves 50 years of history after the founding of the PRC and three generations of people. Through the protagonist’s six reincarnations, including five lives as livestock, it witnesses that era: land reform, people’s cooperatives/communes, the Great Leap Forward, the three-year famine, the Cultural Revolution, large-scale pig raising, and reform and opening (the central government produced revisionism). One highlight is that Mo Yan appears in the novel as a supporting character, with both arrogance and self-mockery. Many slogans would not feel out of place today.

I have been fortunate enough to work at foreign companies both in China and in Europe. Both companies were American multinationals, and therefore foreign companies in both China and Ireland. Both also belong to the internet industry. My overall feeling can be summarized in one sentence: it all depends on comparison with peers.

The characteristics of foreign companies in China are Work Life Balance, no overtime, good benefits, good package, and very humane treatment. Colleagues are also very strong, basically graduates of top schools. Of course, in recent years the salary level of China’s internet industry has also caught up and in some cases even surpassed them, such as emerging companies ByteDance and Pinduoduo. I stayed at this foreign company for two years. Because I joined after the pandemic, it was basically work from home, even remote onboarding. The biggest feeling of humane treatment came from the 2021 Beijing hukou amnesty. At that time, the policy had half-year and three-year quotas, to be decided through negotiation between company and employee. That is, after you paid social security for half a year or three years, the hukou process could begin. It was said to be negotiation, but employees were in a weak position and did not have many choices. Foreign companies basically let employees choose for themselves, and of course employees all chose half a year. At that time, mainstream domestic internet companies basically gave three years. Some went even further and added a service period to five years, requiring an agreement that if you left early you had to repay money proportionally. When everyone generally had five days of annual leave, foreign companies gave 12 days. Housing fund contributions were also paid at the maximum 12%. China’s labor law actually sets quite high standards. For example, layoff compensation is N+1, much higher than Europe’s standard of N/2. In the first half of 2023, American big tech companies had large-scale layoffs, and my former company was no exception. The China office was also affected, but compensation was N+6. Still quite nice.

At foreign companies in Europe, advantages such as Work Life Balance and no overtime disappear. Because local European companies have even more Work Life Balance and even less overtime. American-company culture is actually at a disadvantage in this respect. However, the advantages of good benefits and good packages still exist. After all, American companies are basically multinationals making money from all over the world and therefore have much more money. Also, American programmers are paid very well, so even if European salaries are only half of US salaries, they are still above the local market level. Foreign companies in Europe have strong internationalization and diversity. Colleagues come from different countries, and even locals do not necessarily have much advantage. By contrast, in foreign companies in China, Chinese people are the overwhelming majority and foreigners are a tiny minority. Local European companies are still mostly local people, except for companies founded by foreigners. But the overall level of colleagues at foreign companies in Europe is much lower than at foreign companies in China. I think the main reason is that the ecological niche of foreign companies in Europe’s job market is not as advantageous or attractive as foreign companies in China’s job market. Many outstanding talents are also directly attracted to the United States and will not stay in Europe for long.

My teeth are naturally rather soft and prone to cavities. When I was studying in Beijing, I already had an inseparable relationship with the dental departments of the university hospital and Peking University Third Hospital. After a long illness, one becomes half a doctor. Last year I came to Ireland, and I also went to the dentist here right away and have visited dentists often. So I will summarize and share my experience and thoughts.

Two days before leaving Beijing, I suddenly had a toothache and discovered that one tooth had a hole, meaning a cavity, and a fairly serious one. Previously I had always gone to public hospitals. First, I trusted top-tier public hospitals more. Second, costs were lower and medical insurance could reimburse. Third, as a student, referrals could only go to Peking University Third Hospital, which I was familiar with. But public-hospital appointments needed to be booked a week in advance and were hard to get. Therefore, the next morning I decisively went to a well-reviewed private dental hospital near the hotel where I was staying, without even needing registration. Private hospitals indeed have good service. After taking an X-ray, the dentist said the cavity had reached the nerve and required root canal treatment, followed by a crown. The treatment cycle would take at least two weeks and require two visits. A few years earlier, one of my teeth had undergone similar treatment at Peking University Third Hospital. So I knew very clearly what this meant: your tooth is actually already dead; only the corpse remains. Because I was flying the next day, in the end the dentist prescribed me some painkillers.

After I came to Ireland, I onboarded in my second week and already had medical insurance. But at the time I did not yet have a PPSN and was a bit worried, so I waited another month and a half. Only after getting my PPSN did I book an appointment with a dentist near the company office. I also switched my insurance in advance to Principle Scheme + Dental Care, which reimburses more for dental treatment. Later I learned that neither a PPSN nor even onboarding was required to use the company’s insurance. It is indeed very powerful and gives outsiders like us a lot of protection.

Douban link: A Global History: From Prehistory to the 21st Century

I strongly recommend every Chinese person read this book. It may be a bit of a tome, and some places are also relatively brief. After all, it is a global history and cannot cover everything. But after finishing it, the gains are enormous. Especially for someone like me, “born under the red flag and raised in New China,” the history I learned from childhood was all from People’s Education Press history textbooks. Even when reading extracurricular books, they were based on Chinese perspectives and experiences, with similar education and cultural backgrounds. This book was written by an American born in Canada and later teaching in the United States. It can be considered a completely Western perspective. From this angle, it can de-romanticize our previous history education, reduce ideological influence, and move closer to modern history.

The most important realization is why China must achieve modernization, including economic modernization, political modernization, intellectual modernization, and technological modernization. Science and technology are the primary productive forces. Liberalism is the safeguard for the development of science and technology. Democracy is the safeguard for freedom. History and the present fully prove this point.