How To Find Stocks To Buy In China
China is a rapidly expanding economy that has weathered the current economic recession reasonably well. Options for investing in China are numerous but as a foreigner the markets and the culture are likely to be completely unknown. So where to start to find stocks to invest in?
The government will not allow a national company to be bought out by foreign investors and setting up your own company can be difficult. Instead joint-venture operations with a Chinese company are the only way to access the enormous market. But these deals are not without their own risks as a number of overseas investors found out last year with a baby formula tainting scandal that brought down a number of large investors.
Purchasing stocks in Chinese companies is another option. However it pays to be aware that there are a number of government regulations about what types of company stocks foreigners can buy. Many companies have tier A and Tier B shares with only one tier being available to foreigners, the other for the locals.
Private Equity Funds focusing on various Chinese sectors are another popular and less risky way to get into the Chinese markets. However firms still have problems getting the right information out of their Chinese based partners to fully understand what is happening on a daily basis and strategically. For this reason many private equity firms actually actively avoid Chinese investments.
Invest in Chinese property. This sector is growing exponentially and many Chinese are now saying with price increases there is no way they can own their own home. The best options exist outside of Beijing and Shanghai where these markets are reasonably saturated.
However you decide to invest in China it must be remembered it is not an entirely free market. While growth and consumer demand are increasing the level of power the Chinese government has not disappeared. - 23196
The government will not allow a national company to be bought out by foreign investors and setting up your own company can be difficult. Instead joint-venture operations with a Chinese company are the only way to access the enormous market. But these deals are not without their own risks as a number of overseas investors found out last year with a baby formula tainting scandal that brought down a number of large investors.
Purchasing stocks in Chinese companies is another option. However it pays to be aware that there are a number of government regulations about what types of company stocks foreigners can buy. Many companies have tier A and Tier B shares with only one tier being available to foreigners, the other for the locals.
Private Equity Funds focusing on various Chinese sectors are another popular and less risky way to get into the Chinese markets. However firms still have problems getting the right information out of their Chinese based partners to fully understand what is happening on a daily basis and strategically. For this reason many private equity firms actually actively avoid Chinese investments.
Invest in Chinese property. This sector is growing exponentially and many Chinese are now saying with price increases there is no way they can own their own home. The best options exist outside of Beijing and Shanghai where these markets are reasonably saturated.
However you decide to invest in China it must be remembered it is not an entirely free market. While growth and consumer demand are increasing the level of power the Chinese government has not disappeared. - 23196
posted by X - Men @ 3:08 AM
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