Last Updated on 6 December, 2022 by Samuelsson
Trading stocks in China
1. Understand the Chinese stock markets. There are two main stock exchanges in China: the Shanghai Stock Exchange and the Shenzhen Stock Exchange.
2. Familiarize yourself with the different categories of stocks that can be traded in China. These include A-shares, B-shares, red chips, H-shares and non-tradable shares.
3. Determine which type of stock you want to trade. A-shares are the most common type of stock and are traded in Chinese yuan.
4. Open a brokerage account with a licensed Chinese broker. You will need to provide proof of identity, address, and other documents.
5. Fund your account. You can deposit funds via wire transfer, debit card, or via online banking services.
6. Research the stocks you are interested in. Check the fundamentals and technical indicators for each stock.
7. Place your orders. You can place orders online or through the broker.
8. Monitor your trades. Be aware of any news, announcements, and events that may affect the stock prices.
9. Set up a stop-loss order. This is an order to sell a stock if it falls below a certain price.
10. Be aware of the risks associated with trading stocks in China. These include currency risks, political risks, and market volatility.