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China Bull - The greatest bull of the decade
- Thread starter ETFei
- Start date
Well,we know it's crazy, but just try to follow the trend. After all it may be the first and yet the last great bull market one can experience in a life.
I don't trade stocks, but suggested my mother to re-allocated half of her money in A-share to B-share stock last week, it's a bit much safer place to stay than A-share, which is full of bubble, and the stock price is several times more expensive for even exactly the same company.
I don't trade stocks, but suggested my mother to re-allocated half of her money in A-share to B-share stock last week, it's a bit much safer place to stay than A-share, which is full of bubble, and the stock price is several times more expensive for even exactly the same company.
Now I heard they turned the focus to B-Share and H-Share. I know A-Share is for local citizen only. Can China local citizen invest in B-Share or H-Share? I cant really tell the difference between them. If they have RMB100k, can they change the RMB to USD or other currencies and transfer to overseas for stocks invest?
A public Chinese company can issue 2 kinds of stocks in China:
A share is in RMB, listed in China, only available to chinese citizen and big overseas institution through a QFII mechnism
B share is in USD, listed in China, available to anyone with USD, chinese or foreign.
There are also some kinds of stocks listed in overseas exchanges, such as H-share in Hong Kong, and ADR in USA......
Chinese can now exchange RMB to USD much more freely nowadays than before. And yes, they do set a restriction on overseas stock investment: if you want to buy foreign stocks, you have to invest more than RMB300,000 ( about USD39,000) .
A share is in RMB, listed in China, only available to chinese citizen and big overseas institution through a QFII mechnism
B share is in USD, listed in China, available to anyone with USD, chinese or foreign.
There are also some kinds of stocks listed in overseas exchanges, such as H-share in Hong Kong, and ADR in USA......
Chinese can now exchange RMB to USD much more freely nowadays than before. And yes, they do set a restriction on overseas stock investment: if you want to buy foreign stocks, you have to invest more than RMB300,000 ( about USD39,000) .
Quote from ETFei:
Now I heard they turned the focus to B-Share and H-Share. I know A-Share is for local citizen only. Can China local citizen invest in B-Share or H-Share? I cant really tell the difference between them. If they have RMB100k, can they change the RMB to USD or other currencies and transfer to overseas for stocks invest?
I cannot understand how they control the money flow out from China? People can just bank wire any amount of RMB (maybe 200k) to overseas bank anytime, if bank don't allow, they can carry any amount of cash and go to HK banks to exchange for USD, open a trading account, then can trade overseas stocks unlimited. Goverment how to check anyone who bring large sum of money to overseas?
Quote from ETFei:
I cannot understand how they control the money flow out from China? People can just bank wire any amount of RMB (maybe 200k) to overseas bank anytime, if bank don't allow, they can carry any amount of cash and go to HK banks to exchange for USD, open a trading account, then can trade overseas stocks unlimited. Goverment how to check anyone who bring large sum of money to overseas?
Good point. I know from personal experience that this is correct. Brad Setser seems to be making a closely related point here:
http://www.rgemonitor.com/blog/setser/194084