Everyone likes to invest in the US. As the world’s largest economy, the companies you can invest in provide amazing returns and peace of mind knowing that their growth will continue under almost any circumstance.
But, getting exposure to assets in the largest economy is only the beginning. China, with the world’s second-largest economy, should be on your global investment list as well.
Investing in China is a great diversification strategy, as China’s manufacturing industry supports the entire globe. So as a foreign international, how can you invest in China?
It depends on where you live, and what products are offered. But almost anyone can engage in foreign investment in China and its incredible and growing economy. Keep reading to find out how to invest in China today.
Why Invest in China
It’s predicted that in just a few short years, China will overtake the US as the world’s largest economy. Investors and institutions all over the globe have put a huge emphasis on investing in the US, thanks to the stability and growth of its industries and largest companies.
Now, people are starting to find China is able to provide much of the same returns. And as a separate economy that supports global trade, it’s a wise diversification strategy. Even if US stocks plummet, which can often happen thanks to recent political turmoil, the China stock market might not be near as affected.
Plus, China such been establishing its infrastructure and presence in areas like the Middle East and Africa, becoming less reliant on the US in order to maintain its global trade.
With over a billion people in the country, and masses moving from rural communities to China’s many metropolitan areas, GDP is expected to rise as China seeks to emulate the economic powerhouse of the world.
Basically, never put all of your eggs in one basket, in this case, the US. Leverage other large, growing, and reliable economies such as China, and even Japan.
How to Invest in China
There are multiple ways to invest in a foreign country like China. For the most control when you invest in China stocks, you can open a brokerage account offered by a Chinese firm.
Otherwise, you can see what Chinese companies have made their stocks available on the US stock exchange, and purchase them through your existing brokerage account. Companies like Baidu and Alibaba are listed on the US exchange and are sought after by American investors.
Or, consider an ETF, which contains collections of Chinese and other foreign stocks, making it easy to gain broad access to the market.
In Australia, you can visit a site like monexsecurities.com.au to see what our options are for investing in China.
Chase the Returns
Whether you are looking to build your long-term portfolio, or are looking for short-term opportunities, the Chinese stock market is a place worth putting your money. With such a huge economy set for continued growth, everyone should invest in China if they are looking for healthy returns.
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