Can foreigners buy China or Taiwan stock?
Yes, foreigners can buy stocks in China and Taiwan. However, there may be certain restrictions and requirements that they need to comply with.
In China, foreign investors can buy stocks through the Qualified Foreign Institutional Investor (QFII) program, the Renminbi Qualified Foreign Institutional Investor (RQFII) program, or the Stock Connect program. These programs have specific requirements and restrictions on the amount of investment and the types of securities that foreign investors can buy.
In Taiwan, foreign investors can buy stocks through the Qualified Foreign Institutional Investor (QFII) program, the Foreign Portfolio Investment (FPI) program, or through the Taiwan Stock Exchange (TWSE) directly. Like China, these programs may have certain requirements and restrictions on the amount of investment and the types of securities that foreign investors can buy.
It is important for foreign investors to do their own research and consult with their financial advisors before investing in stocks in China or Taiwan to fully understand the risks and regulations involved.
What are Taiwan and China’s main stock indexes?
Taiwan’s main stock index is the Taiwan Stock Exchange Capitalization Weighted Stock Index (TSEC Weighted Index or TWII), which tracks the performance of all listed common shares traded on the Taiwan Stock Exchange.
China’s main stock indexes are the Shanghai Stock Exchange Composite Index (SHCOMP) and the Shenzhen Stock Exchange Composite Index (SZCOMP), which both track the performance of all listed common shares traded on their respective stock exchanges.
Vocabulary
If there are two names for one word, the first one is what Taiwan uses, and the second one is China’s.
- stock:股票 gǔpiào
- stock market:股市 gǔshì
- opening price:开盘价 kāipánjià
- closing price:收盘价 shōupánjià
- bull market:牛市 niúshì
- bear market:熊市 xióngshì
- go up/rise:涨 zhǎng
Note: In both Taiwan and China stock markets, red stands for a rise in stock price, and green indicates a decrease, which is the reverse of the typical use of red to denote negative meanings in the US. So our bull market is all red, not green. And I believe that you know the reason, we just love red so much.
- go down/fall:跌 dié/diē
- limit up:涨停 zhǎngtíng
- limit down:跌停 diétíng/diētíng
Note: In the US, the limit up and limit down is to stop trading for 15 minutes. In Taiwan and China, after the price goes up or down by 10 percent, the price will be banded for the whole day, which means the maximum loss or earns is 10 percent for one day.
- long:做多 zuòduō
- short:做空 zuòkōng
- day trading:當沖/日间交易 dāngchōng/rìjiān jiāoyì
- tie up:套牢/被套 tàoláo/bèitào
。。我所有的錢套牢在股票裡我所有的钱被套在股票里
。。All my money is tied up in stocks.
- being played for suckers:割韭菜 gē jiǔcài
。。我被割韭菜了我被割韭菜了
。。I was played for a sucker.
- rebound:反弹 fǎntán
。。美股連續跌了三天後,在週四反彈美股连续跌了三天后,在周四反弹
。。US stocks rebound on Thursday after falling for three consecutive days.
- stock exchange:证券交易所 zhèngquàn jiāoyìsuǒ
You can also call it 证交所 zhèngjiāosuǒ. The Shanghai Stock Exchange (SSE) is the largest in mainland China.
- dividend:股利 gǔlì or 股息 gǔxí
- tech stock:科技股 kējìgǔ
- financial stock:金融股 jīnrónggǔ