Chinese Investment in US Hits Record Highs: Are You Taking Part?

by Daniel Guttenberg Did you know you may have a neighbor who owns Google?

Another who owns Disney, and several who own Coca Cola.

They don't own the whole company, of course, just a few shares of stock, but it's still a pretty exciting development for today's investors.

It used to be difficult for the average person in China to own stock in these US-based companies, but times are changing. According to the Wall Street Journal, more Chinese working professional are investing in US companies than ever before. Many of your friends, family members, and neighbors may have already joined in on this new era of investing.

The question is, have you?

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Here’s Why US Stocks May be a Good Choice for Chinese Investors

Of course, just because people you know are investing in US stocks doesn't necessarily mean it's a good idea. All stock investments carry risk; a good investment is one that is expected to produce long-term value with relatively low risk. In other words, you want to buy strong companies at a good price.

Since the start of this year, the US stock market has fallen considerably, yet many market analysts believe this is merely a short-term "correction" and that the US economy is still going strong. This means that the well-known and long-trusted brands that make up many of the United States' blue chip stocks may be trading at attractively low prices even while analysts believe their earnings will continue to grow.

The current low prices and strong expectations for US stocks may make this a great time to invest, and new legal environments and new technological innovations have made it easier than ever for Chinese investors to own the US companies they admire.

China and the US are currently in negotiations for a mutual investment treaty, which could make it even easier for China's citizens to invest in the US at even larger amounts. It is possible that US stock prices will rise once the treaty is in place, and some investors are doing their best to purchase US companies before the price jump they're predicting—buying while the prices are still low.

Another major reason behind this investment pattern is the increasing ease with which average Chinese investors are able to purchase foreign stocks, including those traded on the major US exchanges. Previously, not only legal but technological barriers meant that only big banks and other major Chinese financial institutions were capable of purchasing US stocks, and only the wealthiest Chinese could profit from their success.

 

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Internet-based stock purchasing has virtually eliminated the technological barrier, making it possible for anyone in China to purchase any US stock. With a little bit of savings, a little bit of research, and the right stock buying service, you can start investing in US stocks today.

Be a part of the new Chinese economy, and take advantage of the foreign investments now open to you. You can bet that your neighbors are, and you don't want to be left behind.

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