Question

Why a company would like to invest in China?

Answer 1

Because of China's high population volume and its sheer involvement in spreading its dimensions across sectors such as IT, economic industry and its political stronghold in all spheres, many businesses are reflecting huge opportunities for growth. And as an investor one should always look for an industry that has better prospects for future growth.
Unlike any other world markets, there are many commodities in this market that allow investors to diversify their portfolio. Diversification therefore fulfills the requirements of the investor and thus he can create better avenues for profit making.

The political power in China has its own stronghold in its market capitalism, particularly the Communist Party and its policies. The Chinese companies adhere to these policies in order to show their loyalty for their country and government; these businesses also do not leave any stones unturned to make their company profitable.
Since the start of every new business in China or a Chinese citizen 's growing years, his government has always instilled one thing, namely how to expand and how to consume a little extra in all departments, respectively. Thus, an investor can only expect high dividends if he follows the policies or rules laid down when investing in the Chinese market

In the currency appreciation market the Chinese currency Yuan is experiencing a positive trend. Thus, Yuan's strengthening over the inflation cycle as opposed to the dollar will give an investor investing in this market a better chance of survival.
There are numerous companies such as HSBC, Citigroup that have their offices established in different parts of the world that have their holdings on a continually increasing list.
China has shown that it can stretch its boundaries to counter inflation and other risks, thereby building a vulnerable atmosphere for investors to buy secure good stocks.