Are you looking at making an investment in Chinese companies? Many people are looking for opportunities in the second-largest economy in the world. You have come to the right place.
We will discuss some of the things that you should think about when looking for a Chinese company to invest in.
We also want you to consider our company: ClearWay Law China
Investment In Chinese Companies
If you are interested, fill out a form on this website and our CEO will contact you. You can also add him on Linkedin and reach out directly.
The best way to find investment opportunities in China is to reach out to your countries embassy in Beijing. If you are British, you can contact the British embassy, and see if they have a business arm.
You can also contact your Chamber of Commerce, which might be in Shanghai. For example, there is a Canada/China Chamber in Shanghai.
You can ask them about companies that they know of doing business in the local market.
What Should You Think About When Investing In China?
Make sure the Chinese companies you speak to are properly registered in China. You do not want to invest in a company that doesn’t exist.
The corporation should provide you with their registration, incorporation documents, and trademarks. If they do not have these documents, big red flag.
The documents will likely be in Chinese. You should hire a law firm to review the documents and make sure they are real. You must be able to understand them. You can speak to one of our business lawyers in China (if you are investing in another company.)
If the company is a great company, but not organized with their documents, you can refer them to us. Our business attorneys can help them with their trademarks, incorporation, and shareholder agreements.
Investors must consider the fastest growing market in the world. You cannot ignore China.
Investing In Chinese Companies For Beginners
Make it clear you are not going to make an investment until they get everything set up properly. If they don’t have trademarks, someone will just steal the name.
You need to make yourself aware of investment opportunities. You need to understand accounting. You need to know the laws, the people, and customs.
It’s normally not as easy as making an investment in your home country. It’s more work when investing in foreign countries.
You also need to understand the tax rates and do your research.
China has seen growth over the past few decades that no other country has ever had. Things go fast. Something can grow or die overnight. The same thing is true of corporations.
Investing In Chinese Companies
If you are wanting to invest in Chinese stocks that are publicly traded, this section is for you. If you don’t invest, are you missing out?
Alibaba and Tencent might be good businesses to invest in. You should speak to an investment advisor about this.
Alibaba is a company that has done well over time. It is expected to continue growing.
Tencent is one of the biggest companies in China. It is involved with gaming and social media. The trade war has hurt the Tencent stock. However, it is likely the stock will do very well over time.
Revenue continues to go up over time with both companies. If there is a new trade deal between China and the United States, Tencent and Alibaba’s stocks will likely go up.
In conclusion, hire a business lawyer in China before making an investment in Chinese companies.
Author: Alistair Vigier is the CEO of ClearWay Law