Quick Facts about China
- Population: 1.3 Billion
- Languages: Mandarin
- GDP: 9.25 Trillion
- GDP Growth Rate: Worldbank
- Travel Requirements: China Visa
Seeking to invest in China? Despite a slight decrease in the speed of growth and expansion, I still believe foreign direct investment in China is one of the most profitable opportunities around.
The growth statistics for the country still flirt with double digits and some of the world’s fastest growing companies are located there.
The number of options available to get exposure to the region are vast, including stocks, China-based exchange-traded-funds (ETFs) and Chinese mutual funds.
Additionally, because China remains one of the largest importers of commodities on the planet, being well-versed in the country’s dominant practices is useful for managing one’s holdings, even outside of China.
Overall, maintaining an allocation to China is a prudent move for anyone wishing to ensure a diversified growth element in his or her portfolio.
China Investment Guides
Browse our Chinese investment guide sections to find what you’re looking for.
Browse our top Chinese stocks to watch and build a profitable China stock portfolio.
Chinese Real Estate is booming. Discover how to invest in China Real Estate along with more tips and resources.
China offers a vast array of mutual fund options. Browse the complete Chinese Mutual Funds list and take a look at our recommendations.
Exchange Traded Funds offer a more balanced approach to investing in Chinese stocks. Check out our complete Chinese ETF investment guide.
How to Invest in China During the 21st Century
Why Invest in China?
The first question that one typically poses when considering a new investment is why, and, in this case, why invest in China.
The appeal of China is fairly complex. It includes the benefits of diversification, the significant growth potential and the geopolitical position of the country.
China consumes such a significant portion of the world’s raw materials that any allocation to this asset class has China exposure by default. Chinese consumption is a major input to global demand. Significant changes in demand change commodity prices.
Overall, making an allocation to China is a great way to both obtain diversification and to gain exposure to a high-growth segment of the market.
Whether one selects Chinese stocks, ETFs or mutual funds, having one’s pulse on China has become a prerequisite to being well-informed on global markets.
While each individual should place any investment into the context of his or her own needs, putting China on the list is wise.
Here is a list of further resources on investing in China.