Major Asian and Chinese stocks on the stock market

Why buy and sell Asian and Chinese stocks?

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:

• An increasingly important market: First of all, the Asian stock market, although not well known to many investors, is a large market. The Chinese domestic stocks market, for example, is now the second largest market in the world in terms of market capitalization, just after the United States.
• An increasingly international market: The fact that Asian markets are opening up to foreign investors is leading to a change in the composition of certain financial services indices.
• Strong diversification of securities: The Asian stock market also has the advantage of having an increasingly diversified range of securities listed on it. Many sectors of activity are thus represented and the opportunities t are therefore numerous.
• Finally, the Asian stocks market remains low valued

How to invest in Asian and Chinese 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.

How to analyse the price of major Asian and Chinese stocks?

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.

What are the major Asian stocks to invest in?

The Chinese and Asian stocks that are worth investing in are of course those listed on the major Asian or international stock market indices. These stocks are indeed those of companies with the largest market capitalisations and which therefore benefit from significant liquidity.

It's up to you to simply find out which stock you are most interested in based on your knowledge and interest in a particular sector, for example.

Some information for investing in Asian and chinese stocks:

Let's end this article by presenting you some simple tips to trade Asian stocks in the most efficient way possible.

• Firstly, you should always base your positions on a precise strategy by first carrying out a technical analysis of the chosen stock and a fundamental analysis. Once strong buy or sell signals have been obtained, you will be able to start trading with limited risk.
• Also take the time to choose the stocks you wish to invest in and diversify your positions as much as possible by not betting everything on a single security or a single sector of activity.
• Don't hesitate to use all the tools provided by your broker to find out whether an Asian stock is really interesting or not. In particular, systematically check the strength of a trend and its volatility.
• Finally, don't forget to cut your losses or take your gains at the right time by placing stop and limit orders on each of your positions.

Which financial products should I use to invest in Asian and Chinese stocks?

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.