Foreigners can buy Chinese funds

on Thursday, 4 April 2013. Posted in ,
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SOME QUICK THOUGHTS

yuan investingForeigners living in China can now buy Chinese stock market funds.  Yes it is true!

That little government announcement slipped through this week and seems to have been ignored by mainstream media.  Probably since it doesn’t have any effect on the vast majority of people globally.  It only applies to expatriates living in China.  That however is our key clientele so we will break down several issues we think it raises.

We will run through a quick list in this post, but this is a topic we are likely to come back to and add more depth as things develop.

Firstly, it demonstrates, yet again, that the Chinese government is determined to support the Chinese stock market.  This stands in stark contrast to…

the property market where the Chinese government announced new taxes and new curbs designed property prices.  Get the picture?  Stock market investment good.  Property speculation bad.  The Chinese government preference is pretty clear.

Secondly, it gives foreigners, finally, something interesting to do with their spare Mao.  Until now, foreigners had two interesting choices.  Buying through an un-transparent Chinese unit linked insurance product or your money into a Chinese trust company (assuming you had 1 million RMB you didn’t need for around two years).

Thirdly, it opens a whole series of questions such as

  • Where do I buy?
  • What documents do I need?
  • What should I look to buy?
  • Should I even bother looking?

These are the questions we will look at over the coming weeks.

Happy Qingming Festival To you all!

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