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From China Stock Market
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Investing in China Stocks: here you can find and/or contribute information on individual Chinese stocks and mutual funds as well as promising private companies. There are also going to be articles on investing in China's stock market.
Why China Stocks
China's economy is growing at an annualized rate of 9-10 percent while the US economy is at 3-5 percent normally. The huge economic growth created a lot of opportunities for investors around the world. Wall Street analysts are paying increasing attention to well-run Chinese companies. Even though the stock market in China is young (started since early 1990), and it has a total market capitalization of only less than $2 trillion, the prospect for growth can not be overstated. For comparison, the United States has a total market capitalization of about $20 trillion while the GDP of USA is roughly 5 times that of China.
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Featured Stock
Industrial and Commercial Bank of China or ICBC in short, is the latest state owned bank to go public in China. The ICBC IPO, raising $21.1 billion, is the biggest in the world as of Nov. 2006. It surpassed a previous record held by NTT DoCoMo of its $18 billion IPO in 1998. It is the hot China stock in 2006.
China Life Insurance Corp is another stellar performer among large China stocks ADR in 2006. China life stock was up by more than 100% after stock split.
In 2007, Chinese IPO stocks in US market continued to perform pretty well. One of the new Chinese IPO stock, WuXi PharmaTech (Cayman) Inc. (WuXi), has more than doubled its IPO price after raising over $160 million by selling ADR on the NYSE.
Featured Funds
For foreigners who want to participate in China's stock market boom, there are variety of ways they can invest their money. One of those is through exchange traded index fund available in the United States stock exchange.
The iShares FTSE/Xinhua China 25 Index Fund focuses on the largest companies in China (58% of holdings) and Hong Kong (42% of holdings). It is designed to generate a performance similar to that of the FTSE/Xinhua China 25 Index, which tracks the largest and most liquid Chinese companies that are traded on the Hong Kong stock exchange. The one-year return of FXI in 2006 is an eye-popping 40%. One of FXI's components, China mobile stock has performed really well in 2006.
Investment Risks
There are risks with any financial investments in any country. Investing in China's stock market is no exception, which may be even riskier to foreigners in many cases, although investing in the China ADR on NYSE can be as safe/risky as investing in a US company.
Volatility is one big risk in the Chinese stock market. One doesn't have to look further than the 9% stock market sell-off in China on Feb. 27, 2007, which really highlights the risk of investing in China's stocks. It is also wise to pay closer attention when investing in Chinese stocks that are traded on OTC bulletin board.
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- Read The Wall Street Journal for news on China stock market.
China Stock Market Today
The major search engines and Yahoo Financial are good place to keep yourself abreast of latest China Stock Market news and update. The Chinese stock market, as often measured by Shanghai stock exchange composite index, has been the best performing stock index in the world so far this year (up 50% by mid-May), which genereated a lot of press coverages and speculation on China Stock Market bubble and Chinese stock market crash. Even US. Fed chairman Greenspan predicted an upcoming China market downturn.
Below are some live news update provided by Google.
