2007-01-06 04:04:31 · 4 answers · asked by steve w 1 in Business & Finance ➔ Investing
I've bought into a Chinese company a few years back, a hundred shares for a couple hundred bucks total. Not every Chinese stock is expensive (but cheap stocks are often cheap for a reason).
The corporate environment in China is still young, still immature, and it is still officially a Communist country. They can pull the rug out from under you any time they please and for no reason at all but that they please. MAYBE you can call some Hong Kong companies safe, but the the mainland China companies, the ones closest to "safe" are not going to be cheap. If you want cheap, forget the word "safe".
2007-01-06 04:22:54 · answer #1 · answered by Rabbit 7 · 1⤊ 0⤋
First of all the words "stock" and "safe' should not be used in the same sentence. Once you realize that there are no safe stocks and that 100% of your investment is at risk then you can talk about what to buy. I like the China ETF (FXI) because it is efficient and trades like a stock in real time, as opposed to a mutual fund that is inefficient and only trades on a purchase/redemption schedule after the market is closed. By efficient I mean that all of the money in the fund is invested and it is not actively managed. An ETF is effectively a static basket of stocks represented by shares in the basket. Whereas a mutual fund is actively managed as well as open ended which means that the fund manager may be forced into selling stocks prematurely if too many people chose to redeem their shares at the same time.
2007-01-06 12:45:17 · answer #2 · answered by tomcat1762 1 · 0⤊ 0⤋
Look into the ETF's...XFI, ILF...there may be others...sort of high share price so you'll only be buying 10/ 20 shares( "smallish scale").....You're buying into quite a few different companies, so it's a little "safer" than trying to pick one winner.
Good luck.
2007-01-06 12:59:24 · answer #3 · answered by jebediabartlett 6 · 0⤊ 0⤋
The safest way to invest in China is to invest in American or other companies that invest in China, like Microsoft, IBM, Yahoo, Google etc;. This way you are freed from worries of Corporate governance and other ethical issues that might be missing there if you invest directly.
2007-01-08 10:55:48 · answer #4 · answered by Mathew C 5 · 0⤊ 0⤋