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IPFS News Link • Economy - Economics USA

Chinese ETF Could Send Waves of Chinese Investors Into U.S. Stocks

Due to past investment restrictions, this ETF is sure to be a goldmine for the firm as it suddenly opens up the U.S. stock market to Chinese savings. Given the massive glut of Chinese savings, plus the rapidly growing domestic wealth, it's thus not inconceivable that one day a Chinese S&P 500 ETF could be as large as the SPDR U.S.-based ETF mentioned in the excerpt above. That means a lot of Chinese liquidity, pent up for many years, could start pouring into U.S. stocks as international investment opportunities are expanded for Chinese citizens.

2 Comments in Response to

Comment by Charleston Voice
Entered on:

It does not logically follow that US stocks would advance. I suspect Red Chinese government brokers are much more savvy about the US Government's market manipulations! Who would put their hard-earned savings at risk in a rigged market?

Comment by Ross Wolf
Entered on:

Months prior to 9-11, U.S. Senator Paul Wellstone introduced legislation to force transparency, to identify foreign investors buying and shorting U.S. companies and stocks on the New York and other Exchanges. Then on October 25, 2002 the commercial airline Sen. Wellstone was riding crashed killing him and his family. His legislation never passed. Had it bill passed prior to 9-11, it may have been possible for U.S. Government to identify persons that appeared to know in advance of 9-11 that shorted and bought Puts on U.S. Stocks that were most adversely affected by the 9-11-attacks. With the Chinese now able to buy stock in U.S. Companies perhaps Sen. Wellstone’s bill should be reintroduced.