More and more investors are taking an interest in Asian shares, particularly Chinese and Japanese stocks. That's why, in this section of our site, we're going to tell you everything you need to know about these stocks, with a presentation of the major Asian and Chinese stocks, their characteristics and the information you need to know before buying or selling them.
Investing in Asian, Chinese and Japanese stocks: in brief
- Chinese and Asian stocks often benefit from strong economic growth with industrialisation, urbanisation and the rise of the middle class.
- Volatility in Asian markets can be higher due to factors such as government policies, geopolitical tensions and currency fluctuations.
- Asian stocks cover technology, finance, consumer goods and emerging industries such as renewable energy.
- It is possible to buy certain Asian stocks online using a securities account or to trade them using CFDs.
It is not without reason that Asian and Chinese stocks have been attracting so many investors from all over the world in recent years. Here are some of the advantages of these stocks:
To date, there are few funds that allow you to buy Asian and Chinese stocks through a portfolio of stocks. However, stocks that are listed on major Asian stock indices, such as the Japanese or Chinese benchmarks, are for the most part accessible from online trading platforms offered by CFD brokers.
In each article you will find information on how to buy and sell Chinese and Asian stocks, whether through a bank or an online broker.
Here are the different options for buying Chinese stocks:
1. Buying Chinese stocks listed abroad
2. Buying Chinese stocks via an investment fund
3. Buying Chinese stocks via an online broker
Trading Chinese and Asian stocks with CFDs (Contracts for Difference) is an alternative to buying stocks for cash.
CFDs allow you to profit from a rise or fall in the price of a stock without owning it.
Here are the advantages of trading Chinese and Asian stocks with CFDs:
Here are the disadvantages of trading Chinese and Asian stocks with CFDs:
If you want to trade Chinese and Asian stocks with CFDs, it is important to understand the risks and specifics of this type of trading.
Here are the top 10 most-traded Chinese stocks in the world:
It is important to note that trading volume is not the only factor to consider when choosing a stock.
It is also important to consider the company's financial strength, growth prospects and risk profile.
As with investing in French, European or American stocks, a good investment in an Asian and Chinese stock depends above all on the ability to make a coherent analysis of it in order to anticipate its future movements as well as possible.
However, these analyses require a thorough knowledge of each stock and its issuing company. In order to help you in this sometimes complex task, we have therefore produced articles dedicated to major Asian stocks in which you will find all the data you need.
For example and for each security, you will of course find general stock market data such as the company's market capitalization, the number of shares on the market, the market and the stock exchange, the main stock market index or the sector of activity. We will also give you further information about these companies with detailed business data and sources of earnings, a presentation of their major competitors in their industry, examples of strategic partnerships they may have formed recently or their major strengths and weaknesses.
In each article, we will also detail the elements that you should take into account when conducting a fundamental analysis of these stocks with the publications and events that will have the most influence on its price.
By now you will no doubt have understood that the major difficulty in trading Chinese and Asian stocks is that you need to know a great deal about the companies that issue them. But unlike European or even US stocks, information from Chinese and Asian companies listed on the stock market is sometimes scarce and hard to find.
That's why we've devoted a section of our site to these stocks, enabling you to find all the information you need to analyse the biggest Asian and Chinese stocks at a glance.
Here you will find articles dedicated to each of the major stocks on the Asian market, containing useful and accurate information, including :
Finally, all the information you can find here on the pages dedicated to the major Asian and Chinese stocks will provide you with the basis for your analyses, with knowledge and information that is not exhaustive and will help you to carry them out. All that's left for you to do is to put it into practice by carrying out your own analysis of each stock before trading it.
Let's end this article by presenting you some simple tips to trade Asian stocks in the most efficient way possible.
Today, it is impossible for European investors to access the Chinese stock market directly. For the other Asian stock exchanges, some brokers give you access to them, including the Japanese stock exchange.
However, you can still buy Chinese stocks listed on the American or European stock exchanges, and there are many of them. This is done through certificates or contracts, which are certificates issued by banks representing foreign shares. However, check whether your stockbroker offers the shares you are interested in. To buy these Asian stocks for cash and add them to your stock market portfolio, you simply place a buy order for the number of shares you wish to acquire.
Another way to invest in more Chinese or Asian stocks is through derivatives such as CFDs, which do not require you to own the shares being traded. These are contracts that are backed by shares and track their performance on the stock market. There are many brokers offering this type of investment, which involves trading on the rise or fall in the price of an asset, with the gain or loss corresponding to the difference in price of the share between the time you take the position and the time you close it.
You can also make more diversified investments in these Chinese or Asian stocks through units of ETFs. These are exchange-traded funds that generally track a stock market index, in this case the Chinese or Japanese index, which holds a range of stocks and trades like stocks.
Finally, you can also look at certain mutual funds such as FCPs or UCITS that specialise in Chinese or Asian equities or that include a significant proportion of such equities. Here, a management company is responsible for the composition and management of the fund in order to optimise the return for investors.
Of course, before you start speculating online on the major Asian and Chinese stocks, you should bear in mind that this investment, like any other financial investment, requires a sound knowledge of the market and the ability to carry out relevant and accurate analyses of each stock. This will enable you to obtain, in a concrete and serious way, upward or downward signals and therefore to know how best to position yourself.
Here, as with other stocks on the European or international markets, you are strongly advised to master both fundamental and technical analysis. Here we explain what they are and how they complement each other.
Using only one or other of these types of analysis is not advisable, as it would distort the signals obtained and their quality. Ideally, you should compare the signals you obtain through these analyses in order to confirm or refute them. It should also be remembered that these analyses do not give you a 100% guarantee of understanding and anticipating future movements in Chinese and Asian stocks, so you need to be aware of the risk involved in trading these stocks as you would other stocks on the market.