In order to profit from buying stocks of companies in China, it is essential to gain general understanding about backgrounds of current Chinese leaders who are in control of economic and social policies of the People's Republic of China.  They have direct impacts on the overall economic growth of China, and they are in charge of appointing ministers of each government ministries that are directly in charge of policies and regulations of different industries of China.

Then, knowledge about China financial markets will be necessary to understand economic trends and trends of stocks in China.  Interest rate fluctuations and other financial policies have direct impacts to the securities markets in China.

Last, in our China Investment Newsletter, we will recommend Chinese stocks as well as stocks related to China.

Backgrounds of China Financial Markets

Different from financial markets in industrialized countries, the primary reason for creating the stock markets in China was to allow state-owned enterprises (SOEs) to raise capital from Chinese households and from foreign entities by initial public offerings (IPOs) of unseasoned (never before traded) shares as a substitute for continued central government funding of such capital investment.

Because of the reason mentioned above, domestically listed Chinese companies often are companies soon-to-be-bankrupted if they are not injected with new funding, and rarely are high quality companies that are worthy of investment.

As the stock market went through bull market periods, the nature and purpose of companies getting listed changed: they only want to obtain money from private investors for the sole purpose of obtaining more money and more liquidity, thus giving more personal benefits to managers and directors of the companies. They are rarely go for continued investment and/or long term profitability of the company that would benefit their shareholders. 

Many of domestically listed companies invented or made up "bright" future prospects of their companies' earnings and skillfully utilized their innate publicity skills to present a pretty picture of their companies' potentials.  Most of them massaged their accounting books to make their earnings more appealing to investors.  Thus, many innocent investors' monies are buried into the stock market. (Nevertheless, gambling is also a factor for the loss of investors' money in China.  See Gambling, Casinos, and Chinese)

Read more to see how to research and detect problematic Chinese companies.

Here, we present you a few of the gems of the Chinese listed companies.  We uncover the truth, and objectively research and detail the future and credibility of the public companies in China.  We charge a higher than average for the price of our investment newsletters because of the difficulties we have experienced in uncovering the truths of Chinese public companies.

China Stocks

China stocks are often classified into three categories: A shares, B shares, and H shares.

Read more about

Classification of China shares.

Investing in Chinese B Shares listed in Shanghai and Shenzhen Stock Exchange
(Investing in B Shares Listed in Shanghai Stock Exchange and Investing in B Shares Listed in Shenzhen Stock Exchange)

China Related Stocks

We will also look at stocks that are related to China, particularly those stocks that are owned by Chinese nationals and overseas Chinese.  We will also examine shares that do substantial amount of business with China and/or profit from China's increasing demand for certain goods and/or profit from China's increasingly competitive manufacturing and other industries.

More information on our China Investment Newsletter

China Funds - Mutual Funds, Close-End Funds, Hedge Funds, Off-Shore Funds, and Others

We will also examine funds that invest in China, including mutual funds, close-end funds, hedge funds, off-shore funds etc.

More information on China mutual funds, China close-end funds, China hedge funds, and China off-shore funds.

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