Due to the depreciation of the RMB and domestic inflation, an increasing number of people are focusing on overseas asset allocation. Today, we will provide a brief introduction to the legitimate channels for overseas investment and the associated considerations.
1. Purchasing overseas securities products, such as ETFs, stocks, futures, and options.
Method 1: Large capital can be used to purchase Hong Kong stocks through the Shanghai-Hong Kong Stock Connect.
Method 2: Individuals can open accounts with overseas brokerage firms, such as internet-based brokers, and then proceed with currency exchange and transfers. Alternatively, one may open an offshore account first and then remit funds to the brokerage account.
2. Purchasing overseas wealth management products, such as debt investments and structured deposits.
Method 1: Engage domestic financial institutions that act as agents for overseas wealth management products.
Method 2: Utilize overseas banks, securities firms, or third-party wealth management institutions.
3. Purchasing overseas insurance
The primary reason people go to Hong Kong to purchase insurance is that the premiums for Hong Kong insurance are lower. It is understood that insurance companies in mainland China calculate premiums based on mainland mortality tables, whereas Hong Kong insurance is based on mortality tables derived from Hong Kong population statistics. Since the overall life expectancy in Hong Kong is higher than that in the mainland, the premiums are lower.
4. Investing in overseas real estate
Currently, Chinese overseas property investment is primarily concentrated in the United States, Europe, and Australia, with New Zealand also seeing a significant rise in interest in recent years. In the United States, New York State on the East Coast and California on the West Coast are the primary destinations for property investment. Spain, Greece, Portugal, and Cyprus have consistently been popular countries for property investment in Europe, with a notable increase in buyers in Spain and Greece since 2016.