My wife and I don't feel that we have any particular advantage investing in Chinese stocks so we have no exposure there.I keep hearing that China is going to pull the world out of the recession. How are people investing in that market? Besides buying resource companies (coal? potash?) is it advisable to buy China's stocks directly? Or is it better to go with a fund?
I'm not saying Chinese economic growth won't be strong. It is already affecting the world in important ways. It is just that the benefits will mostly go to Chinese workers and management, not foreign investors. Also, investors already expect healthy returns from Chinese stocks and the valuations already discount that. Still, this is just my opinion and I could be totally wrong. Then, I'd be happy that I had some exposure to Chinese stocks through VWO.- but I feel that we NA's are so limited in our investment options that most won't profit much.
Technically buying an ADR is not buying direct. I take it you meant buying stock of a Chinese company?I read Hsu's book on investing in China. Basically, don't bother trying to invest directly on their exchanges. Buy ADRs if you buy direct at all. And don't buy the state-owned corporations (that's his advice, from living there and being Chinese).
I'd like to increase my exposure, but right now I just have exposure through coal.
I'll have to check out VWO - hadn't heard of it.
Exactly how I feel , I hope North Americans realise that now in the midst of high unemployment we are going to need the jobs we gave away to the lowest bidders like China.I think the rest of the world is also going to figure out that they cannot continue to export their manufacturing to a country that has no effective controls over safety, pollution, or product purity/quality, and that is going to require a major correction in China's manufacturing costs to fix..
Mogul, you're right. I guess I mean "direct" as in *not through an ETF.*Technically buying an ADR is not buying direct. I take it you meant buying stock of a Chinese company?