This much is certain: few people doubt that China's role and share of the global economy is poised to grow. However, despite the blatantly obvious trend, there's a worrying communication gap between the Western world and China.

 

Simply put, ChinaFund.com is here to change that, by essentially creating a knowledge bridge between China and the rest of the world so as to connect Western investors to Chinese capital seekers, Chinese investors to Western capital seekers, Chinese financial professionals to Western financial professionals and the list could go on and on.

Realistically speaking, they can be very problematic unless properly understood. Can you invest in China and be completely oblivious of the many cultural particularities that are involved? Yes, but it would be an understatement to say that this would be optimal.

 

For this reason, ChinaFund.com believes in providing the full picture when it comes to investing in China. While it is not our goal to turn visitors into well-versed scholars, we firmly believe in establishing a solid foundation when it comes to everything that has to do with China, from history to culture.

 

By finding the right balance between content strictly related to the investing dimension and content that complements the dimension in question (historic aspects, cultural nuances, etc.), ChinaFund.com puts a very well-rounded approach to investing in China on the table.

Words cannot begin to describe how important it is to occasionally think outside the box when investing. While it is understandable why investors are tempted to simply stick with the comfort of investing in domestic assets (and perhaps a few more mature markets as well), those with the foresight it takes to spot mega-trends such as the Chinese one will be more than generously rewarded if they do it right.

 

As such, wealth enhancement is one of the two main dimensions which make it clear why opportunities in China are worth exploring. However, there is also the dimension of diversification which needs to be taken into consideration.

 

No matter how thorough your Due Diligence process is and no matter how much confidence you have in your assessment of the current status of the worldwide economy, there is always the distinct possibility that you are wrong. As such, diversification is paramount and what better market to choose for that than one which is poised to dominate, such as the Chinese market?

Investing in general inherently carries a certain degree of risk and this is precisely why wise investors are so generously rewarded by the market. Even more so, one might say that your returns will most likely end up being directly proportional to your ability to measure risk and act on it.

 

As a direct answer to the question, yes, investing in China is risky but the same can be stated about any other jurisdiction. The language and cultural barriers mentioned in the answer to the third question contribute to the perception that investing in China is somehow more risky than investing elsewhere.

 

That, however, is an emotional rather than rational interpretation. Rationally speaking, the trend in China is so strong that it would take Earth-shattering paradigm changes for it not to eventually become the #1 economy worldwide. As such, the rational decision of tapping into the world's future dominant economic force is actually the exact opposite of what the emotional dimension (staying away from something you perceive as being different) dictates for a lot of individuals.

Just like in any jurisdiction, there are legislative particularities you need to be aware of and those accustomed to the Western legislative paradigm need to understand that there will be significant differences involved.

 

On ChinaFund.com, we will cover many of these differences so as to help investors understand that while you might feel a certain degree of discomfort at first glance if you are not accustomed to this jurisdiction, adaptation is the operative word.

 

Once you (broadly) understand how things work in China from a legislative perspective, any uncertainty you might have had surrounding this aspect will tend to dissipate.

 

Not because the legislative situation is perfect (it never is, in any jurisdiction) but rather because as you get familiar with more and more jurisdictions, you'll undoubtedly end up realizing that it's all a matter of meaningfully understanding the pros and cons in each case, then making the entire situation work in your favor.

The short answer would be "yes" but it would be a misleading one because while currency devaluation in China is (of course) a cause for concern, the exact same can be said about the currency devaluation efforts taking place pretty much everywhere else in the world as well.

 

Simply put (and this is nothing new, historically speaking), countries tend to be eager to devalue their currencies so as to boost exports and improve their situation when it comes to trade, make their debt that is denominated in the local currency easier to manage and the list could go on.

 

This is a worldwide phenomenon that has been around since well before economics was considered an independent field and it is highly unlikely that it will be going away anytime soon. The politico-economic context changes, the measures themselves differ but the underlying principle remains intact: countries love engaging in currency devaluation as long as they believe this can be kept under control. As such, you should indeed worry about the currency devaluation dimension when it comes to China but without making the mistake of assuming this is somehow an issue that pertains exclusively to this jurisdiction: it is an ubiquitous global phenomenon that isn't going anywhere and needs to be properly included in any investment strategy.

Just like when it comes to currency devaluation, trade tensions such as those between the world's #1 and #2 economies (the United States and China) are to be expected and are in no way limited to just China or any other jurisdiction.

 

A country will almost always exhibit the tendency of trying to trying to limit imports and boost exports. This can be done through constructive policies such as those that encourage local production and boost the productivity of local exporters... but it can also be done (or, better stated, tried) through measures such as imposing tariffs and other trade barriers.

 

Given the current geo-political context we find ourselves in, global trade tensions are pretty much a given and while definitely worrisome, are simply yet another variable that needs to be included in our risk assessment strategy.

The Chinese civilization has been long not for centuries but for millennia and, as such, the sheer volume of information you find about it may seem overwhelming.

 

ChinaFund.com believes in the "dosage and context" approach. Or, in other words, it is not our intention to bombard viewers with as much volume of information as we can produce, not at all.

 

On the contrary, we are here to help make the entire process of getting accustomed to the Chinese investing landscape straightforward. To simplify rather than complicate, in other words.

 

As such, we do our best to carefully choose the topics we cover and as you will be finding out, they heavily lean toward the historic and economic dimension. While there is, of course, value also when it comes to exploring other dimensions such as the cultural one, it is beyond the scope of this project to dig deeper than necessary for investment purposes.

 

In other words, ChinaFund.com is here to help primarily when it comes to learning about China from the perspective of a potential investor who is interested in allocating capital toward Chinese opportunities. While we occasionally also provide cultural or language-related context, that will be the exception rather than the norm.

Of course! Simply visit the "About Us" section of this website for a detailed description of what we intend to do here on ChinaFund.com and who the people behind this project are.

The easiest way to get in touch would be sending an email to contact@chinafund.com but there are also other options you can choose, which can be found in the "Contact" section of ChinaFund.com.