One of the reasons why the Chinese stockmarket has grossly underperformed the country's economic performance over the last 10 years is that investors do not trust its companies, fearing that most if not all of them are cess pits of corruption combined with having zero corporate governance.
Mind you the Taiwanese stockmarket hasn’t really faired much better and it shares little of the problems listed above.
For those that believe the Far East offers great returns for longer term investors Taiwan looks the better place to invest. In fact we ourselves have been putting money into the market via the UK ETF ticker code ITWN. For US investors they can use the Taiwanese ETF ticker code EWT.
Use Taiwan Shares To Backdoor Into China
Switched on fund managers though are investing directly into China through Taiwanese companies who in turn are investing heavily in the mainland. The feeling is that you’ll get good exposure to China without the hassle of owning Chinese shares. The following companies are big investors and operators in China –
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