| Buy the stocks in "Chindia"? | |
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| Jul 5, 2008 02:32 |   |
| guest2211 | Do you think that there is a buying opportunity in Asian stock market? Some investors believe this and want to do investment in "Chindia", referring to China and India. After the sell-offs in China and India, they believe that China and India stock markets are more valuable than before. Is this real? In recent days, Chinese stock market has been in its downturn, slumping quickly. Many Chinese investors have been trapped in the market as well as losing a lot of money. In this situation, why do some investors believe that there is a buying opportunity? Don't forget that China also faces high inflation risk. If you were them, will you choose to buy Chinese and Indian stocks? |
| Jul 5, 2008 22:16 | #1 |
 | why not. you can buy China's B share or H share. Gains are garanteed for the long run even if you have no idea at all what the stocks are. |
| Jul 6, 2008 00:13 | #2 |
| O.K. MARRIE....you smartie....does a U.S. investor have to go thru a U.S. or Canadian broker to obtain China stock ( shares) or is there a direct link to a Chinese broker? How about investing in China's yuan(RMB)? I could probably answer most of this myself just by searching the net but thought you might be just as good a source. |
| Jul 6, 2008 12:22 | #3 |
| O.K. Gary. We (a big portion of retail investors are retired old people) can do trading in Shanghai Stock Exchange at every corner of the world if you have access to internet. B share denominated in U$ and H share listed in foreign stock exchanges. I thing the proportion of foreign ownership for those shares have upper level ceiling.(every country has similar legislation on this) with further opening in fin. sector and accounting and financial trading principle merger with international standards, i guess (just guess) FDI(foreign direct investment) could enter A share and no B share any more. And i am not tech person, but from tech. perspective, China has bunches , bunches of tech. persnonel in hardware and software posted is abstracted one pageof the source- good source for those who are interested in int'l fin. http://findarticles.com/ China's stock markets and the World Trade Organization |
| Jul 6, 2008 12:23 | #4 |
| No national securities regulation statute governs securities firms in China. Foreign participation in securities firms on China's two official equities markets, Shenzhen and Shanghai, is regulated both by local and national law. The local PBOC branches in Shenzhen and Shanghai retain final regulatory authority over the respective exchanges, although both the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) have significant rule-making power.140 Securities firms, both foreign and domestic, are governed by the rules adopted by both the Shanghai and the Shenzhen securities markets. Foreign securities firms cannot broker foreign securities in China and can only broker &shares to their foreign clients. Foreign investors are not allowed to own more than five percent of any issuer's &shares.l41 Investors in B-shares must open &share accounts on the SHSE or SZSE that are considered overseas accounts and no inflows or outflows are allowed without the prior approval of the local State Administration for Exchange Control (SAEC) branch.l42 Foreign securities firms cannot provide investment advice and cannot manage a mutual fund.l43 Foreign securities firms may invest in B-shares for their own account either directly or through mutual funds, and, to a limited extent, facilitate Chinese investment in foreign securities.144 Foreign firms do not participate in clearance and settlement in China's stock markets; clearance and settlement on the SHSE is done by an inter-dealer association under PBOC supervision, and on the SZSE, it is done by the local PBOC branch.l45 China's stock transaction costs are high, in part because of failures in the clearance and settlement system. By allowing foreign securities firms with clearance and settlement experience to freely compete on China's securities market, the PRC should foster confidence in the clearance and settlement system and lower the market's transaction costs. |
| Jul 6, 2008 12:24 | #5 |
| As stated above, the Shanghai branch of the PBOC has authority over approval of the SHSE itself, approval of transactions, and regulation of securities dealers.146 Because the original SHSE regulations did not explicitly permit foreign entity participation as brokers, dealers, or underwriters, the 1991 Shanghai B-Share Administrative Measures and the Shanghai B-Share Implementing Rules were promulgated. Under these regulations, trading on the Shanghai exchange is limited to approved Chinese securities houses, although foreign securities firms can be sub-distributors of &shares.l47 Foreign securities firms are allowed to solicit orders for B-shares only, but have to route them through a Chinese member of either the SHSE or the SZSE.148 All B-Share transactions on the Shanghai exchange must be executed through a securities company approved by the local PBOC branch, with significant restrictions on foreign participation.l49 In June 1993, twenty-six SHSE foreign members were invited to apply for memberships on the SHSE. Under the proposed arrangement, foreign securities firms could place a trader on the floor of the exchange but had to clear and settle with a Chinese member with whom they had to share the commission.50 The legal form of the trading enterprise under the proposed arrangement had to be a foreign company.151 The restricted use of the membership plus the RMB 0.6 million application fee, led only eight of the twenty-six invited firms to accept this initial offer.l52 ......... |
| Jul 6, 2008 23:16 | #6 |
| Thanks for all the information MARRIE. Geez....you wrote a book. But, you are a very thorough person(s). |
| Jul 7, 2008 18:55 | #7 |
| I hope I would reach that level in 10 years. In knowledge explotion era (thanks for IT tech), i feel myself is nothing Bnet, i think is developed by US, UK, AU guys/gals and it is and excellent journal in investment. |
| Jul 9, 2008 21:00 | #8 |
| "How about investing in China's yuan(RMB)?" This sounds a good idea. Since China's yuan is appreciating stably, many people choose to do investment in RMB. You see, recently the mainland and Taiwan has made a deal. The exchange between RMB and NT can be done in about 13 banks and their branches in Taiwan. Some people make a joke that you can use one "Chairman Mao" to exchange for four and a half "Sun Yat-sen". |
| Jul 12, 2008 10:26 | #9 |
| Since direct flight between mainland and Taiwan, Taiwan dollar first time beat Thai Baht since it’s suffered sluggish economy due to its political uncertainty. It’s surprised to see so many Taiwanese and their agricultural products pouring into shanghai. Keeping close ties to mainland is boosting Taiwan’s economy. |
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