It is well known that holding uncorrelated asset classes in our investment portfolio gives diversification benefits. In the same sense, diversifying among competing or rival countries or jurisdictions helps to maximize freedom by mitigating political risk. This article discuss the merits, and ease of, diversifying in a country that virtually all have never given a second thought, let alone an initial one.
So says Jayant Bhandari (internationalman.com) in edited excerpts from his original article* entitled Consider an Offshore Bank Account in Mainland China.
The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and the FREE Market Intelligence Report newsletter (sample here; register here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Bhandari goes on to say in further edited excerpts:
…[The country in question] —contrary to popular belief—is not a police state (certainly not for foreigners who have no political agenda), has no grand imperial ambitions (again, contrary to popular belief), and where the rule of law seems to work. That country is China – yes, China.
…Despite the negative reputation that the Western governments have built of China, there’s a large community of Americans [and other foreigners] who now live and work in China. I’ve known a lot of them for many years. They do complain about the quirks of Chinese, but they find themselves living a relatively free life.
Opening a bank account in China is mostly a breeze.
Most mainland Chinese banks will let foreigners open a bank account… They haven’t yet fully adopted the client-repelling habits of banks elsewhere. You will likely not even be cursorily asked why you want an account. They want customers and treat them with respect. As a foreigner, you will be ensured of especially nice treatment.
A passport is usually enough. They will likely accept a foreign address for communication with you. Carrying a proof of this would help, but usually is not necessary. It might even help to know someone in China who can accept your initial mail from the bank—again not usually necessary. A few dollars’ worth of renminbi will do for the minimum deposit. Of course, the rules might change, so nothing is guaranteed.
With this preparation, try:
Be mindful of the fact that even in big cities, you won’t always find an English-speaking agent so look for a branch in an area frequented by expatriates. It’s preferable to use a major bank that provides an English-language interface for the Internet.
China has recently removed visa requirement for a three-day transit stay for most countries (the U.S., most of Europe, Canada, Australia, and others), making it possible for you to quickly stop over and open an account.
Another possibility is to try the offices of a mainland bank in Hong Kong and elsewhere. They might be happy to do the needed paperwork to open an account with their corresponding bank in China.
Don’t let the “communist” label put you off about China. It’s one of the most capitalistic countries anywhere, so don’t forget China when formulating your diversification strategy. It’s not only a country where—at least for me as an outsider—the rule of law works very well, but is also a rare country whose arms the U.S. cannot easily twist.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.internationalman.com/articles/consider-an-offshore-bank-account-in-mainland-china (Copyright © 2014 Casey Research, LLC.)
Hong Kong is an excellent place to bank. One of the best in the world, in my opinion. Why? Because the banks are strong, stable, innovative, and well-capitalized [and account holders] are free to choose what currency to accept (and save), whether HK dollars, US dollars, Chinese Yuan, gold, or anything else. Read More »
I have a personal friend who spends months every year developing business opportunities in China and I find his ground level perspective unlike anything written elsewhere. If you really want to know what is transpiring there go no further than to read this insightful email on the “China condition” particularly as it compares with that of the U.S. and Europe. Words: 1320 Read More »
I believe that the engine of global economic growth for the next five-year period will be China. I firmly also believe that it’s not only appropriate, but critical for investors, even those whose focus is trading rather than investing to now take a look at China equities based on long-term investment horizons. [This article does just that with some specific investment suggestions.] Words: 1581 Read More »
With negative sentiment toward China reaching an extreme in recent months, patient investors have been rewarded with this week’s news of improving data from the Asian giant. [In fact, according to BCA] this appears to be a good time to be investing in China, as stocks are historically cheap. Words: 760 Read More »
In order to argue that we will not see a sharp slowdown in Chinese growth, it is not enough to claim that a) some expert or institution has predicted that Chinese growth will not slowdown, b)that China has enough savings in its coffers to bail itself out of a crisis or c) that Beijing leaders cannot tolerate growth below 8%, so of course growth will not drop below 8%. As greater evidence for the bear camp surfaces, China bulls need stronger justifications for their positions or risk losing credibility. [In fact, they need precise answers to 3 questions put forth in this lengthy but extremely insightful (dare I say, absolute best, article on the China syndrome to have ever been written!) article. Words: 4130 Read More »
While there will be some corrections in the medium term as Beijing tries to balance growth and inflation to curb potential bubbles these pullbacks should prove to be good entry points for long term investors. Words: 631 Read More »