Chinese stocks are simply companies that are based and trade domestically in China and/or are also listed on foreign stock exchanges, namely the United States. Chinese stocks allow aggressive investors to buy companies where the majority of the business is in China, hence Chinese stocks are a play on the growth of China. In China, the major companies are listed on the benchmark Shanghai Composite Index.
While it’s true that China-based companies have subjected U.S. capital markets with erroneous results and reporting, it doesn’t mean you should bypass Chinese stocks—you just need to be extra careful.
The situation has improved and will get better for investors looking at Chinese stocks listed in the U.S. The Securities Exchange Commission (SEC) has revamped the listing requirements for Chinese companies and has forced Chinese companies looking to list in the United States to use approved auditors, along with other, tighter reporting requirements. China may not be in the spotlight for investors now, as was the case a few years back, but you cannot ignore the country. With the recent years of under performance, we see excellent risk-to-reward longer-term upside in Chinese stocks.
The overall theme of successful stock market investing so far this year has been the record moves by the technology sector, with the NASDAQ staging another one on Monday.As many of you know, there have been two major themes in my investment and trading approach: technology and China.I have long been bullish towards Chinese stocks and. Read More
Investors were jumping into stock buying on Thursday morning. But while it may be an encouraging sign for the stock market, my advice is not to be fooled by this dead cat bounce.We will likely see oversold buying after bouts of deep selling (as we have been witnessing). I doubt there are sustainable market gains around the corner; unless. Read More
Wall Street opened sharply higher on Friday July 10th, as investors cheered the Chinese rebound and felt optimistic over the new submitted proposal by Greece to creditors to win new funds and avert bankruptcy.Chinese stocks rose sharply for the second day on Friday, with the Shanghai Composite Index closing up 4.5% higher. International. Read More
History has taught us that a stock market top occurs when there’s euphoria among investors. We have seen this over and over again. And you don’t need to go too far back in history to see it in the making. Just look at the current collapse in the price of Chinese stocks.Stock Market Top in ChinaChinese stocks had a solid run to the upside. Read More
China’s recent stock market crash has sent many stocks to the floor. It might be a good opportunity to invest after the burst of the giant stock market bubble. As billionaire investor Warren Buffett once said, “Be fearful when others are greedy, and greedy when others are fearful.”Here is how you can benefit from China’s stock. Read More