Do you think is good idea to invest in China?

I wanted to find is that a good idea to invest in China now? because of there so many people that become success after invest in China.
If yes on what I should be invested in.
If no why not.

Investing in China is a very good idea. The catch to explosive growth is your dealing with a lot of variables. Unknown variables increases risk and potential loss of capital. (even though returns may be spectacular). Just a few of these risks are a virtually unknown economy, unknown culture, exchange rates, market sentiment, and a language you probably cannot read. In addition to all the variables mentioned above most companies (if you go to individual stocks) will have shares issued in Chinese, and some in English. Therefore a share price to company valuation will be dramatically disrupted.

I am not one to advocate loss of capital because it takes a 33% gain to recover from a 25% decline. You must take into account the 2008 Olympics are going to be held in China. The Olympics are encouraging a lot of the short term home growth in China and this will probably start fading in the next 6 months.

Here is how I would go about playing China if you still feel high prices and large amounts of unkowns and risk are something you cannot stay away from.
1) Look for an American play to China. Shipping of bulk goods, supplies, rail roads (Warren Buffet has been doing this for the last few years), manufacturing materials, or anyone that supplies building materials.
2) Buy multinational companies with partial exposure, but not fully 100% invested in the Chinese Market. A small hiccup could always occur and start a very bad trend you don't want to be caught in.
3) Ask for professional advice to help you further research into the Chinese market.

In the short run, yes, there will be explosive growth. It won't last though, the population is aging fast.

Yes.

Your best bet is smaller faster growing companies with superior fundamentals and technicals.

NO! That market is way too hot and they are playing nice because of next years Olympics after that......

Plus China is STILL a communist state despite opening up their country to outsisders.

I perfer a more diversified apporach like CWI (own) or VEU. Investing in a single country only is not a good idea especiall this one that is just too hot right now.

Yes, if you got the right connections and you clearly know what you are investing.. a lot did made money in China but there's a lot who got cheated also... so be real careful...

It was a great idea a couple of months ago. Now, I am not so sure. Chinese stocks look awfully expensive. Indian stocks look a lot cheaper. Here are 2 portfolios, 1 of Chinese stocks, and 1 of Indian stocks. Good luck!

http://top10traders.com/ViewPortfolio.aspx?userID=7

http://top10traders.com/ViewPortfolio.aspx?userID=13

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