Singapore captivates Chinese investors

Singaporean investment bankers should play a more pivotal role to help wealthy Chinese conduct more commodities trading, as well as making foreign exchanges.

Nevertheless, Chinese investments going through Singapore does not seem flawless. Apparently, many Chinese are flooding cash into the real estate markets of New York and London, where taxes and land prices remain much too high.

Too many Chinese rely on real estate above other sorts of investments. They overlook global stock markets for building on their nest eggs. Hence, this would infer that their investments are not as diversified as they should be, which also creates elements for a real estate bubble that could burst if another financial crisis erupts.

Perhaps this trend stems from a lack of knowledge of how to invest in the stock markets. Many Chinese see real estate prices continuing to rise and assume a downward trend would never happen. That's a dangerous philosophy to believe in.

Investment bankers in Singapore should consider talking to their clients about buying and selling more stocks, bonds and mutual funds. If the clients are unfamiliar with such investment tools then the bankers have financial incentive to teach them the fine art of stock market investing.

Meanwhile, Singapore as a premier port city makes the city-state an attractive market for Chinese investors too.

"Singapore as a trading hub will benefit from the trade growth, with China, India and Vietnam being her fastest growing trade routes, with India also expected to become Singapore's fifth-largest trading partner by 2030."

Singapore's investment banking community has long been recognized as one of the best in the world. Wealthy Chinese investors are happy to do business with them. But it's important to maintain diversified investments. Therefore, the Chinese should learn more about stock markets. Singapore is a good place for them to get a better understanding of these matters.

The views do not necessarily reflect those of China Daily.

McGregor@chinadaily.com.cn

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