HOW TO INVEST IN CHINA

Direct Investing to Chinese Domestic Stock Markets

A Shares: companies incorporated in mainland China and are traded in the mainland A-share markets in both Shanghai Stock Exchanges and Shenzhen Stock Exchanges. The prices of A shares are quoted in Chinese currency Renminbi, and currently only mainlanders and selected foreign institutional investors are allowed to trade A shares.

Investors can indirectly invest A shares through Morgan Stanley China A Share Fund CAF.

B shares: companies incorporated in mainland China and are traded in the mainland B-share markets both Shanghai Stock Exchanges and Shenzhen Stock Exchanges. B shares are quoted in foreign currencies. In the past, only foreigners were allowed to trade B shares. Starting from March 2001, mainlanders can trade B shares as well. However, they must trade with legal foreign currency accounts.

Investing In China Through Hong Kong

There are two types of China related companies listed Hong Kong Stock Exchanges. Those Hong Kong based companies have significant business in mainland China (Red Chips), and those Chinese companies listed in Hong Kong Stock Exchanges (H Shares). Currently, some of the high quality Chinese state-owned-enterprises and private companies are traded there.

Generally Speaking,  stocks listed in Hong Kong offer greater transparency than stocks listed in China, investors still need to aware that thorough investigations are needed when making decisions.

Investing In China Through Chinese Companies Listed US

There are more than 100 Chinese companies listed in US major stock exchanges NYSE, NASDAQ, and AMEX. Those companies listed in US requires the same accounting and reporting standard as US public companies.

This website dedicates most energy to those Chinese listed in US, and provides quantitative information to US investors interested in Chinese investment opportunities.   

Investing In China Through China Related Funds and ETFs

There are a number of ETFs and Funds available for investors to invest in China. The investment can be made through Closed-End ETFs, Index ETFs, and Open-End Mutual Funds.