Investing in China

[DanishDynamite]

Just read an article in the Danish newspaper Jyllands-Posten which stated that the top 500 companies in China had increased their profits by 23% on average last year. 23%! On average!

How does one buy stock in Chinese companies? Is there any problem in selling said stock and getting the profit transferred to an account of your choice?

 

[Mycroft]

Wow!

When you get the answer from your stock broker, be sure to let the rest of us know.

 

[Questioninggeller]

I did some research with Chinese businesses and CPC leaders a while back. With the workers making 40-60 dollars a month, its a good deal for the businesses. The CPC expects to continue GDP growth at huge rates (tens of percents) by lowering investment costs and bending local rules (pollution, labor requirements, building costs, etc).

There is still so much room for investment and expansion its amazing. Also life for many of the people has been getting better with investment, but there are times this is not the case.

The United States really needs to safeguard some of the businesses or the US economy will be suffering in 20-30 years.

 

[Tex]

A relatively small subset of Chinese companies are approved to be traded outside of China, but the ones that are can be bought and sold like any other securities. I usually don't give out stock tips, but I have done pretty well on China Mobile (CHL). Of course "past performance is not indicative of future results" and all that jazz. There are also mutual funds such as MCHFX which are doing alright too. There is an index of top Chinese publicly traded companies called the Xinhua 25 -- you can pick companies off that list or invest in an index fund based on it such as FXI. I should add the disclaimer that I have no idea if the above funds are sold in Europe but I would assume that there is something equivalent, or that you could buy the individual stocks in the fund directly.

 

[DanishDynamite]

A relatively small subset of Chinese companies are approved to be traded outside of China, but the ones that are can be bought and sold like any other securities. I usually don't give out stock tips, but I have done pretty well on China Mobile (CHL). Of course "past performance is not indicative of future results" and all that jazz. There are also mutual funds such as MCHFX which are doing alright too. There is an index of top Chinese publicly traded companies called the Xinhua 25 -- you can pick companies off that list or invest in an index fund based on it such as FXI. I should add the disclaimer that I have no idea if the above funds are sold in Europe but I would assume that there is something equivalent, or that you could buy the individual stocks in the fund directly.

Excellent info, Tex. Thanks!

 

[Azure]

What is the rate of comparison to India?

 

[Foolmewunz]

Just as you'd do with anything: get advice, do research.
Stay out of China - the markets are insane! But you can get brokers in Hong Kong or New York to act for you. But the incorporation and financing laws over here are very different. It's very possible to have a zillion shares in the marketplace but still have a tight family control over the business. It worries some.

The popular punters' field is "properties" - i.e. real estate. Stay clear of it unless you know a lot about it. The Chinese government is starting to get worried about foreign speculators and quite likely to tighten things up.

Here's a good introduction. Follow articles and links of organizations who actually do business, here, though. (Wall St. Journal, HSBC, Standard Chartered, etc.....)

http://www.slate.com/id/2116775/