Why and how to invest in China
You may not know it from trade war headlines, but China’s financial markets are easier than ever to invest in. How can retail investors in America benefit from this? (This content is produced in partnership with Finimize.)
This content is produced in partnership with Finimize.
If current GDP growth rates in the U.S. and China continue with no outsized interruptions, the absolute size of China’s economy is likely to eclipse that of the U.S. sometime in the next 15 years. By a more technical measurement that economists use, called “purchasing power parity,” China’s economy is already larger than America’s due to the fact that things in China are much less expensive than in the U.S., and therefore the same amount of money “gets you a lot more” in China.
The top four banks in the world based on total assets are all Chinese (Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and the Bank of China). China’s tech giants — Tencent, Alibaba, Baidu, JD.com, Didi Chuxing, Huawei, Bytedance, Meituan Dianping — are among the most valuable in the world and increasingly give Western tech companies a run for their money in global markets. Privately valued companies are hard to compare, but Bytedance has likely been the world’s most highly valued private startup in the past two years.
While the trade war continues to interrupt the trade of physical goods between China and the U.S., the flow of capital between the two countries continues to grow, and may even accelerate. The pipeline of Chinese companies seeking to list on U.S. equities markets is strong and there have been numerous, very large listings already this year. In China, new regulations and market mechanisms have made it easier than ever for Western investors to place money in China’s financial markets and to operate financial services businesses on the ground in China.
But how can retail investors in America gain exposure to and benefit from China’s economic growth and financial opening?
To answer this question, The China Project produced a special deep-dive titled “Investing in China” together in partnership with a new financial information company called Finimize. Trusted by more than half a million readers and produced by former execs from Goldman Sachs and Bloomberg, Finimize helps you figure out where and how you can invest your money through easy-to-digest news and content on 60+ financial topics — available in audio and text.
To begin making your China investment gameplan, go to https://subscriptions.finimize.com/promotion/supchina to sign up for a free 30-day Finimize trial, and download the Finimize app to get the content. You will have to put in credit card information and download the app, but you can cancel before the trial is up if it’s not for you.
