Question of the week – investing in China

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Question: I have always been cautious about investing in overseas companies mainly because I don't have enough information about them and also because of the future exchange rates, which are a risk. However, I am interested in three Chinese companies, Tencent, Alibaba and Baidu. What information can I get about them and is it worth investing in them. I am a self-funded retiree and do not like to take too many risks but feel that I may be missing out on an opportunity.

Answer (By Paul Rickard): Legally, I can’t advise you whether to buy those three Chinese companies without a full understanding of your financial situation, investment objectives or particular needs.

That said, given that you describe yourself as “cautious”, investing directly in overseas shares may be a long step and you may be more comfortable in investing indirectly through an exchange traded fund (ETF) or managed fund that takes on this style of exposure.

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