Caretaker asked in Business & FinanceInvesting · 1 decade ago

Has anyone figured out a good way to invest in the China Market?

It's obvious there will be some opportunity as China develops it's domestic market but their way of doing business is foreign to us. It's my thinking companies providing consumer products have the best opportunity but how to evaluate and invest other than fund driven baskets eludes me.


What about Banks? Surely a sound bank will enjoy profits of economic growth.

Update 2:

Daniel, STP looks good on the surface but Chinese tend to prefer profit. I fear they won't accept the high start up costs of Solar Power, unless it's heavily subsidized. I don't think the Government is interested at this phase and global welfare funds have higher priority like health and education in developing countries.

As to stocks in general with the man in the street having more disposable income and desire to share in the growth, I fear the stock market is too sentiment driven.

3 Answers

  • 1 decade ago
    Favorite Answer

    I have direct experience working in China. It is extremely difficult as a foreign investor to invest directly into Chinese companies. You know about the A, B shares and they confusing rules right. Plus the lack of transparency in the Chinese stock market.

    I recommend for anyone interested in setting up shop or investment in China, one simple have to be there on the ground. Everything else would make this a too long posting.

    For stocks, the easiest way is to purchase Chinese companies trading in Nasdaq and Dow Jones & there are a long list of them.Sentiment driven in Chinese stocks?. How do you think the US stock market are doing today?. It is pure sentiment here. Metlife reported a huge loss and the stock is up along with DJ index.

    If anything many Chinese companies are more sound in terms of sentimentality to market news. I haven't bought into Chinese stocks at this time but I hope to soon. Problem is they have risen quite a bit the last few months.

  • spargo
    Lv 4
    4 years ago

    I might like to mention well for China making rational choices centered on well economics, however I do not suppose that's the truly rationale China is making an investment in wind. The 2 major causes are countrywide delight and strategic vigor self sufficiency. Modern China is inheritor to an historic civilization that, till proven or else by means of upstart Europeans, regarded itself essentially the most complex society on the planet. China's leaders are latest emperors who desire to be perceived as global leaders and don't recognize taking feedback on any subject, carbon emissions integrated. Canadian Prime Minister Harper used to be just lately informed he didn't talk over with (pay homage) commonly sufficient. If constructing windmills makes China a global chief within the eyes of others, then China will construct extra windmills than any individual else. If constructing step pyramids might carry China's status, China's leaders might be walking a crash application to construct extra step pyramids than the US. Secondly, China is competing with the US for fossil gas reserves. China has found out from the US that invading different international locations for oil is an costly proposition, and so they definitely desire to prevent direct armed clash with the US over oil. China's leaders have most probably calculated that windmills price much less to construct and hold than ships, airplane and tanks. There are, of path, fiscal arguments for constructing windmills, but it surely have to be remembered that rational suggestion tactics are frowned upon by means of most sensible govt and industry leaders who can call for a bailout as a substitute than face responsibility after they make careless choices. I name this the Ozymandias Hypothesis.

  • 1 decade ago

    there are dozens of publicly traded Chinese companies, my favorite is STP.

    If you want to invest in China as a whole I would suggest Xinhua China 25 Index (FXI).

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