Investing in China: the B2b or Business to Business Approach

The economy of China is one of the fastest growingChina, etc. According to a Morning Star fund analyst,
economies in the world. The growth indicators predictthe three best funds are T.Rowe Price New Asia
the rise of China as an economic giant, taking over all(PRASX), Mathews Pacific Tiger Fund and Liberty
the Asian communities. The gross domestic productNewport Tiger. The investors can choose also the
(GDP) growth rate of China is growing at 10 per centfunds such as Inveastec China and Hong Kong,
annually, which is three times more than the GDPMathews China Fund, Liberty Newport Greater China
growth of USA.A, U.S. Global Investors China, Regular Opportunity and
The growing economy is one of the reasons thatFidelity China Region, etc.
investors are keen to invest in B2B or business to-The Industries of China B2B or Business to Business
business world which results into ever increasing ChinaChina is growing rapidly; so are global sourcing and
global sourcing. Foreign investments in import andimport and export of goods. Consequently, there has
export or global sourcing of Chinese goods have beenbeen increase in the demand of tele communication,
rapidly increasing since 1990. The main reasons for theenergy and transportation sector. So, most of the
fast growing economy of China and B2B or businessfunds own shares in these B2B or business to
to business market are free economic policiesbusiness sectors. The Chinese government has
adopted by China, joining the World Tradestarted privatizing practices in some parts of the
Organizations and infrastructure of highways, powerindustry, as a result of which companies are heavily
plants and telephone networks. Consequently, globalinvesting in the selected sectors such as power,
sourcing and investments intelecom and transportation. In overall, global sourcing is
-B2B or Business to Business Trading in Chinaon its high in China as well as import and export
The foreign investors can invest in China's stockindustry; B2B or business to business is playing vital
trading market or import and export of goods. Onerole.
can buy the shares of the companies of Hong Kong-Do you fear for dramatic loss of Heng Seng?
Stock and US Exchange. One can invest in the stockThe foreign investment has been on a constant rise in
market through the stock traders and brokers. TheChina global sourcing or import and export of Chinese
websites provide all information about Hong Konggoods since 1990. Most analysts say the dramatic loss
Stock market, the list of the companies dealing inof 31 per cent of Hong Kong based Heng Seng in
import and export or global sourcing.1994, was the result of rigid economic policies of
-Investment in Mutual funds via B2B or Business toChinese government. But the mutual economic policies
Businessof the government, related to public sector companies
One can also invest in the mutual funds via B2B orincluding import and export industry, adopted from 1990,
business to business market of China. According to aopened the way for the investors. Though the
report published by Morning Star online edition, bestmarkets have been freed and flexible approaches
funds of China in 2006 were Dreyfus Premier Greaterhave been adopted by the government, yet the
China, Oberweis China Opportunities, Old Mutual Clayanalyst believe that there are a few risk factors as
Finlay China Inst., JHancock Greater China Opp,government still plays a vital role in China.
Columbia Greater China A , ING Russia, A, Matthews