Your Questions About How To Invest In China

Linda asks…

How do I invest in Chinese Stocks ?

I want to invest in China. How can I do that ?

John answers:

I beleive you are residing in USA and asking the question. In USA you can invest by buying the Chinese ADRS. A list of the Chinese ADRs can be obtained at the resource below.

As with all stocks investing carries risk and Chinese stocks are not immune to it.

George asks…

Are you planning to make investments in China or India in 2007?

Will you invest in their stock markets or as a private equity investor, or directly in projects, or in any other form? How much? Why? What is your advice to other investors about investing in China or india?

John answers:

Perhaps but I am already heavily invested in both and diversification is the best approach so I might be subject to too much risk by investing more. Both China and India are growing much faster than the rest of the world so a smart investor would do well to participate in that growth. But India especially carries somewhat of a high premium currently on investments and the markets are somewhat volitile. Depending on the risk one is willing to accept, maybe 5% to 15% of ones assets could reasonably be invested in the two countries.

To limit ones risk, a good vehicle for investing is mutual funds, such as IIF or IFN for India and CHN or TDF for China. A relatively safe specific investment in Chinese growth would be CHL the worlds largest mobile phone company. It should grow it earnings in line with the Chinese economy.

Mark asks…

how to invest money in china or hongkong stock market?

Does anyone know how to invest money in china or hongkong market? I mean if I want to buy ICBC stock or its options(which is the HOTTEST IPO coming up btw),
what is the procedure? The stock broker in US can’t do it right?

John answers:

You need a brokerage account with the investment bank handling the IPO. It is usually very difficult for individual investors to get in on IPO’s like this, especially foreign ones, unless you are an established client of one of the IB’s handling the IPO (ie, Morgan Stanley, UBS, Credit Suisse, JP Morgan, etc). Even then, they reserve hot IPO’s like ICBC for only their most elite customers, those who trade MILLIONS every month. And of course big institutional investors, who regularly move billions around every month. It sucks, but thats the way it is…

Laura asks…

Is it morally right to invest in China or countries that?

threaten America in the future? How do you feel about this?

I want to move into the “globalsphere” more and I know by 2040 china should be booming and company growth is about 10-15% compared to the USA’s 2-3% .
Our companies are sending jobs to other places with little thought to how this affect americans, they are moving into the globalshpere and dont really care. Im wondering if I will be left behind if I dont atleast start investing and maybe making some serious dough……

your thoughts?
please, my other questions are dying for answers….look them up! All on finance!

John answers:

Yes, free market capitalism of one of the most moral and fair economic systems. If you have any doubts read anything by Ayn Rand.

There is nothing wrong with taking advantage of high growth overseas. Economically it is a benefit to BOTH countries, by creating cheap goods for us and higher standards of living for them. Yes temporarily people may have to change jobs but in the greater scheme of things its best so that these workers are re-educated and put to greater uses in more high tech industries.

Jenny asks…

How can the average Joe invest in China without getting reamed?

I have but a few deflated dollars; I’ve worked my tail off for many years and would like to do what the wealthy do-that is, invest overseas. How do I do this without running into some future candidate for a 60 Minutes episode where the guy jets off to Israel and cannot be reached? I’m serious, no wonder people live on credit-what’s to invest in that doesn’t go south at the slightest hint of any problem-basically all stocks are over valued and will eventually go broke,more than likely,so what’s the point ,unless you get dividends? Its’ just a big round of Musical chairs, last one standing looses, if its’ on the news its’ already too late,etc,etc,….
thanks hunyah…- help ,everybody-lend me your insights, your failures and triumphs, lest we all go down in flames,uhg….

John answers:

You got it man, I don’t think you are an average Joe.

I think the easiest way to achieve what you want is to invest in ETFs. You have many choices. From specific indexes to broad markets. However not all wealthy people who invested overseas are really happy about it, especially in Asian markets. Shanghai is 50% down and still crashing. And most other Asian markets are not far behind. It is difficult to give you an advice to buy or short because I have no idea (and I doubt most people neither) if these markets are close to a bottom or not.

Screw stock markets, they just became like a casino. What about investing in a real business?

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