How to Buy Chinese Stocks on the NYSE

Buy Chinese Stock on the NYSE

With the recent decline in US stocks, many investors are starting to look at emerging markets and especially China as the future growth area for stocks. In the US, stocks are perceived by many economists and investors as promising lackluster growth in the coming years after the markets stabilize. Many people do not realize that many individual Chinese Stocks can be purchased on the New York Stock Exchange (NYSE).

Things You'll Need

• Interest in China
• Research and due diligence

Instructions

1. FIND a broker or open up an account with one of the online discount retail brokerage trading firms like E*TRADE, Scottrade, ShareBuilder (part of ING, the online bank) or any of the other online services. They usually have low trading fees and offer trading on a large collection of stocks, ETFs and other financial instruments.

2. DO your due diligence and study the Chinese stocks you want to buy with special research given to the fundamentals. What are the growth prospects of the company and what is the company's P/E? Does it support infrastructure or development? See a partial list of these Chinese stocks in the resources link below.

3. START out small or use one of the stock modeling tools available online. These are hypothetical investment tools that let you model stock purchase scenarios historically. They help you get your feet wet before you plunge into the waters.

4. CREATE a strategy. Buy and hold is not always the best approach. Take your profits after you have a gain of 25% or some other target on a stock and re-invest it in other stocks or instruments. Set minimums for each stock and sell if it drops when it hits that low. If your stocks advance, readjust those target numbers so you don't give up your profits.

5. CONSIDER buying stocks from companies that supply China with components and raw materials for its rapid growth and development. China purchases large amounts of copper from Chilean mining companies. Taiwan's leading import and export partner is now China. Taiwan is a leading manufacturer of computer chips, LCD panels and memory.

Tips & Warnings

• Don't over invest in any one company

• Spread your stock purchases out between companies

• Foreign Exchange Traded Funds are also another good option

• Chinese stocks are sold on the NASDAQ also

• Don't just invest in stocks. Put investment money in cash or cash equivalents, bonds and perhaps some gold

Resources

• Chinese Stocks on the NYSE
• Sharebuilder's What if You Had Invested Tool
• How to Invest in Emerging Markets
• freefoto.com