How to Invest in Chinese Stocks

By Jason Gordon

Overview

The global economy has made the world smaller. With the Internet, anyone can take advantage of booming markets no matter where they are located geographically. Since the 1980s, China's growth has been unrelenting, and in the last decade, China experienced 10 percent growth in GDP year after year. Savvy investors are taking advantage of this trend by investing in China for the future.

China's National Flag

Step 1

Create or log in to your online brokerage account. Larger firms like Fidelity and Charles Schwab are more likely to have options for buying international stocks and funds (see Resources below). Many Chinese companies also list on U.S. exchanges like the NYSE.
Step 2

Research the Chinese companies you are interested in. China is producing so much that you can find companies in every sector from energy to banking (see Resources below). An example of a large Chinese company is China Mobile Ltd, a telecom firm. To buy shares in this company, contact your broker or long in to your online brokerage page and click "trade."

Step 3

Input the ticker symbol CHL and the number of shares you wish to purchase. China Mobile Ltd. trades on the NYSE, so any brokerage should allow you to invest in it. If you find a Chinese stock not listed on a U.S. exchange, you may need to call the brokerage international trade desk to purchase the international security.
Step 4

Click submit with a market order for the easiest kind of trade. Most investors prefer limit orders which allow you to specify the the maximum you are willing to pay (in case there is a delay and the price shoots up).
Step 5

You should receive confirmation from your brokerage once the trade is executed.

Skill: Moderate
Tip: An additional way to invest in China to purchase China's government-issued bonds.

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