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Jill
Rocker
Joined: Nov 11, 2004
Posts: 701
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  Posted:
Nov 30, 2006 - 03:36 PM |
 
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| Post subject: Where and how a foreigner buy stock in Shanghai? |
Anyone know where and how can I buy stock in Shanghai. Heard that foreigner can buy only B-share here. Please give me more details.
Thank you  |
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Having more than enough, is worse than having nothing. A knife sharpened too much, does not last long. |
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lucyna
Veejay
Joined: Aug 03, 2006
Posts: 2166
Status: Offline
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Nov 30, 2006 - 03:42 PM |
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Why don't you just ring SH stock exchange? Be careful in stock market. someone I knew here lost half a million RMB in stock market in the recent years. |
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Mon_Mon
Rocker
Joined: Oct 07, 2005
Posts: 662
Status: Offline
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Nov 30, 2006 - 04:17 PM |
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I am not sure if one can by stock in Shanghai but if you wanna to invest in China stocks (as foreigner) may be just go to HK to open a bank account and arrange e-banking arrangement so that you can buy China shares ( B-shares, H-shares, many of the bigger and better quality companies have listed in HK) by internet. |
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Jill
Rocker
Joined: Nov 11, 2004
Posts: 701
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Nov 30, 2006 - 08:33 PM |
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Thank you lucyna, I'll be careful. But I don't think that calling SH stock exchange is a good idea. Will check if I need to do that.
Mon_Mon, I have no idea about opening an account in Hong Kong. I heard that a foreigner can open account here in Shanghai. Hmm, more information please.... |
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Having more than enough, is worse than having nothing. A knife sharpened too much, does not last long. |
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pat_togo
Raver
Joined: Feb 22, 2005
Posts: 403
Location: Pudong & Hongkou, Shanghai
Status: Offline
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Nov 30, 2006 - 09:03 PM |
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You will need to travel to HK to open that account, with your identification number and proof of residence. I would recommend HSBC Powervantage. Or maybe you should approach the local branch of a HK bank in Shanghai to see if they can help you open the account from here.
I agree that buying Chinese stocks listed on overseas exchanges (Hanseng, NYSE) is the best option if you want to cash in the China growth opportunities. The best companies are listed overseas and the local A-share markets in Shenzhen and Shanghai still have a long way to go in terms of efficiency and information disclosure, although it is through that they have performed well over the last year or so compared to the previous five years. State-owned enterprises make the bulk of the market, having the investor returns in mind is the least of their interests, most of them just consider the stock markets as a way to get funds and invest in unrelated industries (real estate etc.).
As far as I know foreigners are limited to B-shares. Contact a local brokerage company for details. |
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Sinoinvest.biz-Offshore Company Registration (BVI, HK etc.) & China Company Formation |
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Jill
Rocker
Joined: Nov 11, 2004
Posts: 701
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Nov 30, 2006 - 10:29 PM |
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Thank you so much, Pat. I will start from local branch of HK bank here first, then will try to find a local brokerage company here. Btw, your blog is so interesting. Thanks again . |
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Having more than enough, is worse than having nothing. A knife sharpened too much, does not last long. |
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mswp
Rocker
Joined: Mar 06, 2005
Posts: 724
Status: Offline
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Nov 30, 2006 - 11:16 PM |
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I agree with Pat_togo, why would you invest in a market where providing for the shareholders is not a priority.
Plus the fact, the markets here are so heavily based on insider trading -- if you were connected in a way that would make it possible for you to profit in the market, you wouldn't be asking here how to go about opening an account. |
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lucyna
Veejay
Joined: Aug 03, 2006
Posts: 2166
Status: Offline
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Dec 01, 2006 - 11:21 AM |
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I strongly agree with you, mswp. the Chinese stock market is far, far less transparent. Nobody can get a slight profit unless you have an inside dealer. |
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Jill
Rocker
Joined: Nov 11, 2004
Posts: 701
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Dec 01, 2006 - 12:14 PM |
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Yeah, I have no connection here. Just wondering if I can make profit from stock market in China. Is it so dangerous to play with? |
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Having more than enough, is worse than having nothing. A knife sharpened too much, does not last long. |
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yu888
Board Deity
Joined: Jan 25, 2003
Posts: 17971
Location: ZhongShanParkArea SH
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Dec 01, 2006 - 12:19 PM |
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all stock markets are dangerous when information is not trasnparent. Not to say that there is not opportnity tomake money but its more of a gamble than an investment whhen you do not have access to good info AND the companies may not be run with Stockholders in mind. just be careful. If one really wants to invest in the Chinese market with a bit less risk, maybe it would be good to consider funds that are invested in China and Chinese businesses but are better researched than we as indivisual investors can get and are a bit more diversified. |
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Thoughts & updates about Shanghai On my Blog for more details:Random Thoughts about Living in Shanghai...and more |
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Batavia
Rocker
Joined: Sep 15, 2006
Posts: 606
Status: Offline
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Dec 01, 2006 - 02:14 PM |
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If you buy the big 'blue chips' companies I think it should be ok. |
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Daniele
Talker
Joined: Oct 20, 2006
Posts: 115
Status: Offline
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| Posted:
Dec 01, 2006 - 03:27 PM |
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| pat_togo wrote: |
| You will need to travel to HK to open that account, with your identification number and proof of residence. I would recommend HSBC Powervantage. Or maybe you should approach the local branch of a HK bank in Shanghai to see if they can help you open the account from here.. |
Did you actually do this yourself? As the residency is not in HK HSBC most likely will not allow you to buy stocks. |
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sandmann
Seeker
Joined: Mar 17, 2005
Posts: 40
Status: Offline
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Dec 01, 2006 - 03:42 PM |
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Although the Hong Kong Hang Seng Index was doing quite well in the global recovery, I am generally wary of authoritarian capitalism (we don't make money unless they want us to) and did not really become interested in China until its main index, Shanghai-A, became such an embarrassment that the government finally targeted it in June 2005. Basing activity commenced immediately, not surprisingly. I assume that as a matter of face, the PRC will want a top performing stock market when it welcomes the world to Beijing in 2008.
You can invest in all kind of china-funds, but not in A-shares directly. only chinese residents can. There are some vehicles which come close, but usually they trade at a premium to net asset value. One is the CAF Morgan Stanley A Share Fund, listed on the NYSE. or the even better Atlantis China Fortune Fund, listed in Dublin, managed by the chinese lady Yang Liu. She is a terrific fund manager and Atlantis a sound investment organisation. You couldn't be in better hands.
The markets that westerners are allowed to invest in are the B Shares, the H Shares and the Redchips. Here's an explanation of the different share classes if you care: http://www.ftse.com/xinhua/english/Share_Types/index.jsp
There are no perfect indices to represent these, but the FTSE Xinhua 25 is not a bad approximation.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=UK%3AF XC&sid =1852967&o_symb=UK%3AFXC&freq=1&time=9
I am sure you can find an index-tracker to the FTSE Xinhua 25 easily. eg: ISHARES FTSE/XINHUA CHINA 25, listed in both Frankfurt and New York http://finance.yahoo.com/q?s=FXI
I'd better shut up now...... |
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hammerforlife
Fire-eater
Joined: May 24, 2004
Posts: 2701
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Dec 01, 2006 - 03:55 PM |
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| yu888 wrote: |
| all stock markets are dangerous when information is not trasnparent. Not to say that there is not opportnity tomake money but its more of a gamble than an investment whhen you do not have access to good info AND the companies may not be run with Stockholders in mind. just be careful. If one really wants to invest in the Chinese market with a bit less risk, maybe it would be good to consider funds that are invested in China and Chinese businesses but are better researched than we as indivisual investors can get and are a bit more diversified. |
Tend to agree with that. I would be very wary about investing in the Chinese stockmarket directly. I buy and sell quite a few shares and it takes a lot of work and research to make decent money and this is in the UK and American markets where the regulatory system is very good and there is generally a full disclosure of the facts. If you factor in the lack of transparancy in the Chinese system and (as Yu888 says) the fact that companies are not always run with shareholders in mind then I would say it is more of a lottery.
There are a number of China growth funds run out of other countries that are probably a better bet and research the market in more depth than any of us can. I would personally invest in these if you are looking for growth in China.
I hear that Anthony Bolton (Fidelity), one of the greatest fund managers at the moment, is in the process of setting up a China growth fund. You could do much worse. |
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lucyna
Veejay
Joined: Aug 03, 2006
Posts: 2166
Status: Offline
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| Posted:
Dec 01, 2006 - 04:05 PM |
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| Batavia wrote: |
| If you buy the big 'blue chips' companies I think it should be ok. |
Which companies belong to " blue chips" in Chinese stock market? To identify blue chips it requires lots of knowledge in Finance and Accounting both. I never simply rely on the financial reports (yearly and half year) from the companies. I think the regulations on stock markets are not that good as other markets in UK or US. |
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pat_togo
Raver
Joined: Feb 22, 2005
Posts: 403
Location: Pudong & Hongkou, Shanghai
Status: Offline
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Dec 01, 2006 - 04:43 PM |
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| Daniele wrote: |
Did you actually do this yourself? As the residency is not in HK HSBC most likely will not allow you to buy stocks. |
Yep and I have an investment account within that Powervantage account. And without being a HK resident. I believe the only major limitation with a HK resident is that you you cannot get and link a credit card to that account, unless you "secure" it with a 50K HKD 1-yr term deposit.
Another option is the "offshore" bank account with HSBC, but haven't tried that as they require you to maintain a 10K USD balance. |
_________________
Sinoinvest.biz-Offshore Company Registration (BVI, HK etc.) & China Company Formation |
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Jill
Rocker
Joined: Nov 11, 2004
Posts: 701
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| Posted:
Dec 01, 2006 - 06:18 PM |
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Very helpful. Thank you so much  . |
_________________
Having more than enough, is worse than having nothing. A knife sharpened too much, does not last long. |
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