Wednesday 3 September 2014

How to invest in China?

China, the second largest economy in the world, has kept more than 8% economic growth rate annually for last three decades. Investing in China and sharing the booming of the China economy have been a smart choice for an investor. But, how to invest in China while you are still not familiar with China market?

1. If you are running a non-financial company, you can invest in a varieties of industries, from a service industry to a manufacture industry, at a varieties of provinces, from south to north, and from coast area to inland area, from an economic Development Zone to a tax preference zone, in China.

 2. If you are a financial institution investor, you have a varieties of options to invest in China. You can invest in the China's capital markets by the the program of QFII ; You can invest in the China's financial industry by buying the stake of a small and medium-sized of regional bank (or credit union), or an insurance company, or an investment bank;

3. If you are a venture capitalist or a private equity investor, your approach is more flexible than any other investors for sharing the economic growth of China.

4. If you are an individual investor, you can invest in a Greater China Area mutual fund in Canada or in the United States; or you can buy a stock of the company who is running business in China; or you can buy a stock of a Chinese company which is listed in the Toronto Stock Exchange, or listed in the NASDAQ, or listed in the New York Stock Exchange, or listed in the Hong Kong Stock Exchange.

No matter what industries or sectors you will invest in, you can choose a right place to start, not necessarily in the biggest city in China, say, if you’re a firework businessman, you’d better invest and live in Liuyang city, the so-called ‘ home of fireworks’, where there are more than 400000 people directly or indirectly engaged in this product in China. In this case, do not forget to do a market survey first or hire a professional business consultant from STIN (www.chinabizservices.com) to learn more resources information first before you invest anything in China. Local experts can save you lot of time, cost and energy etc in doing business in China. .

  As an investor outside China, you have many options to take; but do you know which option you will take when making a decision to invest in China? To invest a business is to try to share the profit of the business, which means that the business in your expectation will grow up, in the future. How do you know a business in China will grow up? There are still a handful of cases of the bankruptcy of business even the economy of China has grown up at the average of 9% yearly since 1980. This is the risk of investment. How to get rid of the risk of investment in China? You have to do a research on the economy of China, and the investment policy, tax policy, and the macro economic policy of China. You have to make sure you choose a right industry, or a right area, or a right partner, or a right company for you to invest in order to share the booming economy of China. STIN professional business consultant can smooth your investment in China: www.chinabizservices.com

 

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