How to Invest in Asia
Choose a country to make an initial investment., Decide if you would like to use a brokerage company in your own country or in another., Ask about the offerings of local banks in the country that interests you.
Step-by-Step Guide
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Step 1: Choose a country to make an initial investment.
Singaporean stocks have different prospects than Japanese stocks do, for example.
Conduct extensive research on local laws and the companies who have headquarters in a particular country.Taking time to choose the right company in which to invest is absolutely critical, as well as exposure to adverse currency events.
For example, Asia Stock Watch provides general coverage of Asian markets, Equity Master provides information on the Indian market, China Daily is the government's English newspaper, and Gaijin Investor and Japan Financials are geared toward foreign investors buying in Japan. -
Step 2: Decide if you would like to use a brokerage company in your own country or in another.
Opening accounts overseas can involve a lot of paperwork and documentation, but will give you far more options than you would otherwise have by using a typical brokerage account in the United States.
Options include being able to invest in companies that you otherwise would not have access to from the U.S.However, brokerage firms are not as regulated as they are in the U.S., nor are trading of securities as regulated compared to U.S.
Credit Lyonnais Securities Asia (CLSA) for example, has brokerage offices in many different countries in Asia and provides extensive research and economic analysis services. , Some banks will allow foreigners to open bank and brokerage accounts by mail without needing to visit the country.
Often, however, a personal visit is required.
For a serious investor, the added options, flexibility and diversification may make it worth visiting the country to open an account.Going directly to the source is beneficial for several reasons.
The vast majority of Asian stocks can be purchased only through the stock exchange of their respective countries.
In addition to the added choices and the chance of new discoveries, investing on foreign platforms reduces currency, political, and financial risk by having bank and brokerage accounts right in the appropriate countries. -
Step 3: Ask about the offerings of local banks in the country that interests you.
Detailed Guide
Singaporean stocks have different prospects than Japanese stocks do, for example.
Conduct extensive research on local laws and the companies who have headquarters in a particular country.Taking time to choose the right company in which to invest is absolutely critical, as well as exposure to adverse currency events.
For example, Asia Stock Watch provides general coverage of Asian markets, Equity Master provides information on the Indian market, China Daily is the government's English newspaper, and Gaijin Investor and Japan Financials are geared toward foreign investors buying in Japan.
Opening accounts overseas can involve a lot of paperwork and documentation, but will give you far more options than you would otherwise have by using a typical brokerage account in the United States.
Options include being able to invest in companies that you otherwise would not have access to from the U.S.However, brokerage firms are not as regulated as they are in the U.S., nor are trading of securities as regulated compared to U.S.
Credit Lyonnais Securities Asia (CLSA) for example, has brokerage offices in many different countries in Asia and provides extensive research and economic analysis services. , Some banks will allow foreigners to open bank and brokerage accounts by mail without needing to visit the country.
Often, however, a personal visit is required.
For a serious investor, the added options, flexibility and diversification may make it worth visiting the country to open an account.Going directly to the source is beneficial for several reasons.
The vast majority of Asian stocks can be purchased only through the stock exchange of their respective countries.
In addition to the added choices and the chance of new discoveries, investing on foreign platforms reduces currency, political, and financial risk by having bank and brokerage accounts right in the appropriate countries.
About the Author
Joshua Campbell
Brings years of experience writing about practical skills and related subjects.
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