Your Questions About How To Invest In China

Helen asks…

I am an oversea Chinese,if i intend to migrate back to China,how much money RMB i need to invest in China?

if i wish to setup a second home in China how much money i have to deposit in Chinese Bank and how much money investment i need to invest?

John answers:

No, you can not go back to China. They do not welcome people go back to China originally from China.

George asks…

how can I buy or invest in China (mainland) Currency?

Their dollar (YUAN,RMB) is greatly undervalued and will have no choice but rising in value over the next decade. I want in on that rise? Any ideas, Any ways to invest now in the currency so when it rising I don’t only get the benefits of accrued interest but the increased value of the YUAN?
P.S. I’m in China currently for aout another month!

John answers:

Your first responder gave you a partially correct answer. An excellent way to take advantage of the undervalued currency is to invest in Chinese assets. Your 1st responder is not quite correct in that only Chinese can invest in Chinese companies. There are a few ways around that. Many Chinese companies are traded on the Hong Kong exchange. These can be invested in by foreign investors. Also there are mutual funds that can and do invest in the Chinese A shares which foreign individuals can not currently invest in. But mutual funds can. CAF is such a fund. CHN also but not to the extent of CAF. Stocks that U S investors can buy are CHL, ACH and about 20 to 30 others. They are traded on the U S exchanges.

The advantage of owning shares is that your investment is growing with the Chinese economy, which I might add is growing very rapidly.

Ken asks…

Do you think invest to China is a smart way?

CEO’s concern is earn more money for their bosses to get better performance, so they always concern about where to invest, and how to take low risk. the most risky thing today is terrism. but to my understanding, those CEOs are supporting those terrism in their own way.
Most of the people think that China is a good market, so they bring their money to there, and then the money used in two ways: first, Chinese Communist Party use it for crack down people to rule the country in high pressure way, second, CCP use it to develop their own army force and support terrism, for they know that some time, they can use terrism to do some exchange with the western countries.
Please every CEO think carefully, before you suggest your boss to invest to China? do you want to involve in government’s crimal to crack down innocent people or you want to support terrism to take more risk?
if you don’t, why you invest to China? and let you

John answers:

Is it too late to cash in on China’s boom? An index that tracks the stocks of mainland companies listed in Hong Kong shot up 85% this year, leaving Chinese stocks looking more expensive than they have been in years. But the most celebrated of all foreign investors in China thinks the country’s potential has barely been tapped.

Mark Mobius, a mutual-fund manager for U.S. Investment company Franklin Templeton, became interested in the mainland 30 years ago, when the only way to invest was through deals at the Canton trade fair. Making a China play is simpler today. The Mobius-managed Templeton China World fund, which buys shares of companies operating in China, Hong Kong and Taiwan, has risen 50% over the past year, and Mobius is counting on the good times continuing. “The economy is at a take-off stage, with 7-8% growth, and a rise in per capita income,” he says.

The best way to play China is through so-called H shares, mainland companies listed in Hong Kong. They “offer their shareholders the best management and disclosure,” Mobius says. Another favorite of overseas investors are “red chips”—Hong Kong-based companies in which mainland entities are significant shareholders. Focus first on firms dealing in commodities, which are essential raw materials for China’s fast-growing industries. Mobius has invested in Sinopec (China Petroleum and Chemical Corp.), which makes petrochemicals and drills for oil and gas. He also recommends companies whose growth is being fueled by China’s consumers, such as China Mobile, which has the world’s largest mobile-phone subscriber base, and China Travel, a travel-service giant.

Mainland stocks might be riskier than other investments, in part because the Chinese government often has significant ownership positions in the country’s listed companies. Should it sell down its holdings, share prices could tumble. Risk is one reason Todd Henry, an analyst with mutual-fund company T. Rowe Price, suggests taking the indirect route. Henry recommends investing in multinational companies that have fast-growing mainland operations or will otherwise benefit from the mainland boom. One example: Impala Platinum, a South African supplier of platinum, which will gain from mainlanders’ growing desire for jewelry. Marc Faber, a Thailand-based investment strategist, thinks China’s middle-class citizens will spend more time traveling in Asia. He suggests investors keep an eye out for shares of tourism-related companies in countries such as Thailand and Vietnam.

Profiting from China without getting burned is currently an obsession with the international investment community. A recent report by investment bank Merrill Lynch suggests an ingenious solution. “Japan is becoming a China play,” the report says, pointing out that Japanese investment and manufactured goods, once headed for the U.S. And Europe, are now going China’s way. The report concludes, “Rather than try and play China directly, maybe we should start to focus on who in the West would benefit from less competition from Japan.” While the boom lasts, it looks like all the world’s a China play.

Sharon asks…

If i want to setup a second home in China how much money i have to invest in China?

John answers:

If you want to buy an apartment in China, there a different prices in different places. Take Shanghai, for example, to buy an apartment, you will need at LEAST 1,000,000 RMB.

William asks…

How to invest in China Stocks from the US?

John answers:

You can buy ETF such as FXI for H-share or CAF for A-share.

You can buy China stocks that traded in the US such as LFC, PTR, SNP…

You can buy H-share traded in Hong Kong directly by using the Global Trading of E-Trade.

More details, see

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