Showing posts with label stopping. Show all posts
Showing posts with label stopping. Show all posts

Sunday, September 13, 2015

How to Make Money in China (4 Steps)


Invest directly. As of 2010, this is the best way to make money in China. The best bets as of now are high technology, energy and the mobile sectors of the economy. Since China acceded to the World Trade Organization in 2001, the Chinese economy has been forced to become more transparent, with a lessened role for state or party actors. This means that investing is easier than it has ever been and China's boom shows no signs of stopping.
Buy the Yuan. The Chinese currency is strong and is likely to remain so. This is because the Yuan is controlled by the state, not by private bankers. As a matter of course, to combat inflation, the Chinese government has decided to keep the Yuan strong so as to deal with the possibly inflationary tendencies of rapid growth.
Buy into firms that are not Chinese, but do much business with China. Here, one can do no wrong with buying shares in Russian oil firms like LUKOil. This is because China is very oil-dependent and, as her boom continues, she will be demanding more and more oil from Russia, her main supplier. As China grows, she will require increased expert information and investment from places like Japan and Taiwan. She is also outsourcing heavily to Indonesia, Vietnam and Burma.
Invest in Taiwanese electronics such as HTC, Acer or VIA technologies. These are high industries that are involved, albeit illegally, in the Chinese economy. Taiwan officially has no trade with China, but 'unofficially' this trade is massive and Chinese companies from Taiwan are making a killing in China. It is likely that this barrier to trade will be lifted as Taiwan and China's economies continue to intertwine. Therefore, it is very likely that Taiwanese firms will be a major part of the electronics and high-technology focus of the Chinese economic boom. Since Taiwan has had transparent trading practices for many years, it is easier to invest in Taiwanese firms in order to make money from mainland China. Especially as China seeks to build her own automobiles, Taiwan's expertise in automotive electronics will become indispensable.
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