Investing in Chinese currency and stocks

djones_4

hi,

I would like to make some investments in Chinese currency Renminbi / Yuan. Not looking to be making trades but rather just leave it so what is the best way to go about it? can i just go into a bank and open an Renminbi account? or some online way of getting them and where to deposit them?

Also want to buy some stocks in Chinese companies can anybody recommend an online broker to use?

thanks, Derrick

tradetime

I doubt too many banks in UK would be willing to open a Renminbi account. Market Vectors does however run an ETN that seeks to track the Renminbi / USD, ticker CNY trades on the NYSE ARCA. It is very thin though.
As for stocks, what do you want to buy?

djones_4

Don't know which shares to invest in. More of a speculative idea to put some surplus cash into Chinese currency and shares so looking how I go about doing this.

tradetime

djones wrote: »

Don't know which shares to invest in. More of a speculative idea to put some surplus cash into Chinese currency and shares so looking how I go about doing this.

Ok, understand where you are, be advised I am only making suggestion about instruments you may want to consider, and should not be taken as advice to invest your money in these products. As always do your own research and be sure you understand the risks, to give an example the currency instrument I mentioned is an ETN (Exchange Traded Note) this is a debt instrument and as such carries credit risk that is not normally present in ETF's (Exchange Traded Funds) So that is something to consider, also as I said it trades very thinly, this can also cause problems. I have no position in that security btw.
As for stocks, I normally do my investing in US traded equities, so anything I refer to will trade on a US exchange, this may or may not suit you, but it will give you an idea of the sort of products out there. There are a couple of ETFs that will give you a diverse exposure to Chinese stocks,

iShares FTSE/Xinhua China 25 Index. FXI
PowerShares Golden Dragon USX China Portfolio PGJ.
Claymore/AlphaShare China Small Cap Index HAO.

I do own positions in both PGJ and HAO currently.