Categories: Finance

Let’s Talk… Investing in China!!

Let’s Talk… Investing in China!!

I’ve been to China twice in my life. I have nothing but love for the Chinese people in that they were warm and welcoming each time. China is really big and Beijing is no exception. Think NYC on steroids. One would think with all those people there has to be a way to make above average gains and benefit from the Chinese capital markets. Here are some reasons why I say probably not. 

First, there is too much uncertainty with regard to accounting standards being used by some Chinese companies. This could force some companies to be delisted from the NYSE/NASDAQ which are the two main exchanges where Chinese companies are traded in the USA. 

Second, it seems that China is using COVID lockdowns to control how fast or slow their economy grows. 

Third, there are tensions with Taiwan which could break out in a war. Although China would likely prevail, the fallout on a world stage of such a conflict would be detrimental to their economy. We’ve seen what’s happened to Russia in the past year as an example. 

Lastly, if you want to invest in China, use a mutual fund or ETF. Don’t take single stock risk and don’t have it as a major part of your portfolio.

The opinions voiced in this material are for general information only and not intended to provide specific advice or recommendations for any individual.

The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

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