What is best way to invest in China?

Question

What is best way to invest in China?

Answer 1

The only way an individual should invest in China is through a mutual fund. T Rowe Price's New Asia fund is a highly rated fund that invests in China. Check out their web site. While I think it is a good time to invest in China  you should only invest of portion of your portfolio in China so that you can remain diversified over many investments so no one investment can ruin you.

Answer 2

Cautiously.

With that said, diversify, diversify, and diversify. Don't invest in one sector within China and make sure you spread your shares. Additionally, I am a big beleiver in global diversification. For instance I have ~30% of my equities in the United States (home), ~20% in developed European Natioes, ~15% in China and India, and ~20% in other emerging markets. Since I am in my mid-20's I can afford the risk involved with investments in developing countries. Anyways, I drift off point.

How to invest in China?

1. Diversify (yea I know, I said it)

Buy individual stocks or buy mutual or exchange traded funds that invest in China. Be careful with funds (ie. avoid high fee funds.

Answer 3

S3 Investment Company Inc (SIVC)  is the company I invest in for my "China" plays.  

http://www.s3investments.com/  

S3 Investment Company's wholly-owned portfolio investment, Redwood Capital, Inc., assists private Chinese companies in accessing U.S. capital markets utilizing an existing network of investment banking relationships. Redwood Capital relies on a highly experienced investment and corporate management team focused on the emerging presence of Chinese corporations in the global capital markets.

China's rapid economic growth and increasingly global reach demand large amounts of private capital, and, unfortunately, experience with western investment banking practices is limited in Chinese corporations. Redwood Capital bridges this gap between Chinese capital needs and American public markets and assists Chinese low-tech and high-tech companies who wish to enter the U.S. market with rapid access to public capital markets.

Redwood Capital assists with the preparation of offering materials, public and investor relations, and SEC filings, assisting the client to become eligible for a Nasdaq/NYSE/AMEX listing and underwriting activities in the U.S. markets. In exchange for its involvement in the client's entrance into the U.S. financial markets, Redwood Capital receives a combination of fees and equity in the new U.S. company.

Do some research on this company.  It's only a penny stock and under the radar for now.  I'm expecting it to uplist early 2009.  It took a beating and has now come around due to completion of some deals in China.  It has taken a long time since deals in China don't move with the same speed as deals in the US.  It's a completely different business climate.

Btw, it has backed off a bit due to establishing a new trading range before breaking .01  Most penny traders realize the significance of that and I believe we'll see an avalanche of traders jumping into this stock once it breaks through.  The current support level is .007  and I just bought some additional shares at .075.  I'm already green on my new shares.  :)

Good luck with whatever your decision is.  I see you already have some good advice from others which might be much better to take if you aren't an experienced trader.

Remember, my opinions are worthless to most since I don't know anything about your bank account or trading style. Your own entry and exit points will determine whether or not you made a good trade.

Answer 4

China's phenomenal economic growth has generated a lot of excitement among investors lately, although the country is now trying to control the boom to prevent overheating. There are a growing number of mutual funds that focus on China, and a pair of ETFs that offer stiff competition. One is the iShares FTSE/Xinhua China 25 Index Fund, which is a way to own a piece of China's 25 largest, most liquid corporations. The other fund is the just-issued PowerShares Golden Dragon Halter USX China Portfolio, which follows the Halter USX China Index of 38 U.S.-listed stocks that do most of their sales in China. The iShares China fund has attracted a reasonably strong following so far as measured by its daily trading volume.