There are many mutual funds investing in China. You can choose a variety of mutual fund companies that are located within North America such as, Schroders Investment Management, HSBC Asset Management and Franklin Templeton Investment. These companies allow only people who are American and have high net worth.

It is also important to note, in China, there are two distinct markets. The ‘H Share’ (Hong Kong stock exchange) and the ‘A Share’ (Mainland China stock exchange). There are certain differences between the two markets. For example, the ‘A share’ market do not allow domestic shares outside the market and only few foreigners are allowed to purchase ‘A shares’.

For the individual investor, try to pick a mutual find that are managed by an experienced manager with consistent results.

The best way to choose one is to search it on Morningstar. Sort the funds that you suits your trading personality by the risks, returns and size of the fund. Choose a couple of funds from the website and research each fund thoroughly before you make your decisions.

It will take you several hours to choose the funds that matches your needs but the rewards are worth it. History demonstrates America have an excellent long term growth record but the future of the world economy lies in Asia, specifically in China.

Remember, don’t put all your eggs in one basket. A good investor should always have a diversified portfolio as it will lower your risk factor yet at the same time, benefit from the growth of China. Mutual funds are a great way of investing in China without much worry that justifies the cost. If you’re not sure how to invest in a mutual fund, seek a friend or a financial planner that will show you the best way in getting excellent returns.

 Hong Kong is one of the leading financial centers of Asia. It’s open market, large expatriate community, direct physical and business connection to china make it one of the most exciting places to invest in. Compared to mainland china, Hong Kong has a transparent and reliable legal system which allows transfer of money and goods easily from one destination to another.

Hong Kong has a wealth of international expertise on both the institutional and retail side that mainland Chinese colleagues can exploit. For example, Hong Kong have a long track record of expertise in compliance, marketing, investor education, innovation and product development, risk management and others.

For more than a decade, China has one of the world most fastest economic growth rates in the world. In only five years, the average household wealth had more than doubled and an average annual GDP growth rate of 9%. With these rapid growth, financial expertise are needed to maintain these growths. Hong Kong is an excellent place to invest in mutual funds because they have the local knowledge and best international practice to help Chinese companies develop and distribute products to the international community. Hong Kong can also help develop the necessary regulatory framework to ensure China adopt best practices and standards.

Investing in Hong Kong mutual funds is a safe bet compared to other mutual in Asia because Hong Kong, is one of the world’s freest economy, has one of the most sophisticated financial market infrastructure, low taxes and global talent and experience. However, risks and returns will vary with the different types of mutual funds available in Hong Kong. To determine a fund risk and return characteristics, you should research carefully of the funds investment policies, objectives and restrictions. In addition, a good long term performance will not guarantee the fund in the future but the likelihood continuing with it’s performance is good.

It is also important to note, Hong Kong mutual funds tend to hold a portfolio of anywhere between 20 to 300 individual stocks. Since there these funds hold so many different stocks, it can handle extreme volatility one stock because it has many other stocks to fall back on.