China Stock Market

The stock market in China is regulated by the China Securities Regulatory Commission. Under government security rules, there are three classes of stocks (i.e. the A-Share, B-Share and H-share) that Chinese company can sell to the public.

China still limits foreigners' purchases of the yuan-denominated stocks that make up the biggest share of the markets. But that is gradually changing as regulators allow increasing participation by so-called qualified foreign institutional investors.

You might ask now how this is going to help me if I am not able invest in China's stock market. Don't worry, there are multiple ways you can still get some investment exposure to China's booming economy.

China has two major stock exchanges, i.e. the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

Shanghai stock exchange composite index is the often quoted barometer of China stock market. It currently stood at about 4000 mark.

Even though as a foreigner you can't buy most of the stocks in China, you can still buy a lot of well-run Chinese companies' stock that are listed overseas. For example, a lot of Chinese company are traded as ADR (American Depository Receipt) on NYSE and Nasdaq.

Another way you can profit from China's booming economy is you can buy American and multinational companies stock that do a lot of businesses in China, such as Starbucks and McDonalds etc.