Like the S&P500. I’m talking about Chinese people in China. Not expats with US brokerage accounts. Thx
I dont think there’s any legal restrictions just practical ones like accessing it.
In Alipay, u can buy Vanguard SP500 index fund and QQQ in RMB
There are products that can be bought through banking apps if you have permanent residence. Any Chinese national can buy them. Just search 标普500. Management costs are much higher than something like VTI but whatever.
That is hard in China. Every buck transfer to the overseas market is monitored and restricted. If you wanna exchange and transfer CNY to USD, you need to submit a paper to explain why you need to.
It’s not simple, but yes. They would first need to get a Tax ID ITIN:
Then they need a US bank account (often has to be done physically, but even tourist visa is allowed - you will need an address… but in theory it could be a forwarding/virtual address unless prohibited by bank or state).
Then they can register at treasury direct:
If necessary, using google voice can provide a virtual phone number to receive SMS messages for free.
Eager to hear how much of this holds up. It’s been awhile since I helped my Chinese father in law do this.
it’s a grey area like using VPN in China but most people just buy Chinese stocks
Hi which USA stock app would be better for Chinese ? Pls give your moment , thanks !
How? Is this still possible?
What banking app? Can you give an example? If you buy ETF like the VOO or QQQ shouldn’t it be similar to VTI?
Wow, this is a great insight. I take it the vast majority of the people won’t because of the complexity so they just invest in Chinese stocks
Yes, it is. There’re QDII ETFs for SP500, Nasdaq 100 and some stock index ETFs for other countries like Japan, UK, France etc.
I mean like Bank of China or China Merchants Bank etc etc. Can buy local mutual funds that track those indexes. 050025 is an example of one that tracks the sp500.
Pretty much, or they may end up getting a foreign brokerage account in HK or Singapore to get exposure with relatively low cost
My question still remains, how do you buy with rmb on alipay?
Thx. It seems the fees for those local mutual funds are way higher than ETFs like VOO?