China is unequivocally one of the hottest investments in today's market.
The country has transformed itself from an impoverished and closed agricultural society to a globally integrated industrial powerhouse. And investors who know how to position themselves now will make a lifetime of profits...
In the past two years alone, stock funds in China have more than tripled the returns of the S&P 500. Its gross domestic product is growing at roughly 10% annually, compared to 3% or so in the United States. And consumer spending is growing at 13%. And the growth has enticed global businesses to quickly jump on board...
Foreign direct investment totaled $51 billion last year, nearly double what it was in 1999. And it's projected to top $345 billion in the coming year.
The nation has lifted 400 million people out of poverty, a transition some call "the fastest change in human history." China's middle class, now estimated at 150 million to 200 million people, is expected to double in size in the next five years.
Today, Shanghai has 4,000 skyscrapers, twice the number in Manhattan, and plans to build an additional 2,000 in the next five years. And this is just one city in China. A very sustainable 9% to 10% annual GDP growth will make investing in China a lucrative target for years to come.
The question is, of course, how do you safely invest in this unprecedented growth... and still walk away potentially doubling or tripling your money?
Indirectly Profiting From 1.3 Billion People
The problem of how to invest in China is amorphous and vague for all but the top investors like Warren Buffett, who has invested $1.2 billion in one of the recommendations in this report. After all, China is still a communist-run country, its government is unpredictable, financial reporting at public companies is less than transparent, and the country's stock market isn't liquid enough to safely invest in. But there are profitable alternatives...
There are many foreign companies China relies on to fuel its economy and support its 1.3 billion people. It's an indirect, safer way to make money from China's massive appetite for growth.
Investors who get into these investments now stand a great likelihood of seeing very healthy gains in the coming weeks, months, and years, many of which will be commodity driven like the ones below:
China's domestic economy has become a powerful engine of growth, and it's not going to stop anytime soon. And top Fortune 500 companies are already falling over themselves to take advantage of what's happening in the world's most populous nation...
As you can see, the biggest and most savvy investors in the United States are already putting money to work in this rapidly growing region at breakneck speed.
The Safest Way to Invest in China's Economic Boom
There are two classes of stocks that trade on China's major exchanges: A-shares, which are denominated in yuan and, until recently, could only be owned by Chinese citizens; and B-shares, which are denominated in dollars and can be bought by foreigners.
You'll want to pass on both. (B-shares, in particular, are mostly failed privatizations, the sorriest bunch of public companies on the far side of the Pacific.)
It's best to focus your efforts on companies that are big enough, sound enough - and honest enough - to list their shares on the New York Stock Exchange.
The reasons are straightforward: the liquidity is better; the spreads are smaller; the commissions are lower; and most importantly, these companies use Western accounting practices - and publish their annual and quarterly reports in English.
再请教金山兄选择什么样的中国基金, 黄金基金 和科技基金为好?
中国基金/ETF 中你认为 MCHFX, FXI 如何?
谢谢.
小宝爹