7 things you should know before investing in Chinese stock market
China hosts five stock exchanges. Three are located within mainland China: Shanghai, Shenzhen, and Beijing, while the other two are Hong Kong and Taiwan stock exchanges.
Source: Republic
China is one of the biggest stock markets with adequate infrastructure and human resources. Chinese companies are also known for cashing out on innovative and emerging technologies.
Source: Republic
To invest in the Chinese stock market, you will have to find a stock broker that allows you to create a Demat account in Chinese exchanges. You can also invest in ETFs that track Chinese indices.
Source: Republic
Investing in China has its own pros and cons. Investors must know their own risk tolerance and the economic indicators, government policies, and global events that directly affect the Chinese market.
Source: Republic
China is an ageing economy with 33 per cent of the nation’s income limited to only 1 per cent of elites. Chinese government policies also hinder the required transparency for informed investing.
Source: Republic
Indian investors should also stay informed about the geo-political tensions and Chinese trade relations as any major bilateral trade restrictions can significantly impact the Chinese stock market.
Source: Republic
India’s growth story is more promising than China’s ageing and export-driven economy. India has the potential to become the world’s leading digital economy with diverse sectors ready.