trading opportunities with chinese internet giants

Trading Opportunities with Chinese Internet Giants

Today’s fast-paced financial world has many traders and investors in the Western world focused mainly on the NYSE in America, the London Stock Exchange in Britain or the European stock markets.

Many tend to overlook the Chinese markets who are colossal and have huge potential for investment from traders.

Did you know?

The Midas List ranks the world’s most successful venture capitalists and from the top 10 companies, six of those are Chinese internet companies.

The Midas list is published every year by Forbes, names such as Toutiao, Meituan-Dianping and Didi Chuxing may be unfamiliar to Westerners.

They are Chinese internet giants who have entered the global arena and are slotted for exponential growth. 

That’s not all…

Neil Shen from Sequoia in China has topped the list for the last two years.
 
What’s the real story?

The success of the Chinese internet environment is the mantra “Do one thing and do it well”. 

Gentlemen’s rules do not apply to Chinese entrepreneurs. They have to learn to evolve rapidly and make their products at lightning speed

Otherwise, they will be copied before they can optimize their business models.

Beyond that…

They need to be able to have all their ‘ducks in a row’ in order to be successful.

They hit the ground running with the right product fit, business models and evolving rapidly from the word go.

This has resulted in 1 Chinese start-up being created every 38 days on average in 2018, with more diversified internet products like WeChat and Weibo. 
 
Get this:
 
Word is out. There is a number of giant Chinese internet conglomerates eyeing emerging markets and entrepreneurs venturing businesses overseas so that they can keep growing.
 
The Chinese domestic market is reaching saturation and the next stage is Chuhai, meaning in Chinese a new stage where entrepreneurs venture into businesses overseas.

They will take their capital, innovation, and technology and unleash a new era in the global digital economy.
 
And you’d be right
 
To think that it could result in a serious threat to American tech companies as the cold war of tech looms with the Chinese pushing to win global markets.
 
Think about it…

Companies in the US like Arm, Microsoft, Google, and Panasonic have had to cut ties with Huawei after the US banned this Chinese multinational technology company.


 
What it means is this

As a trader, you can gain access to 30 of the largest Chinese publicly-listed companies via the China Internet Giants Index.
 
Let’s take a look at some of them:

Chinese Multinational conglomerate, Alibaba is the world’s largest retailer and e-commerce companies.

They provide and specialize in e-commerce, retail, internet, technology and AI including C2C, B2C, B2B, sales services via web portals, as well as providing shopping search engines, electronic payment services and cloud computing.

That’s not all…

Entertainment, films and TV shows

They have emerged as one of the top 10 most valuable and biggest companies in the world and are the second Asian company to have broken the $500 billion valuation mark in January 2018 (their rival and competitor Tencent was the first).

Alibaba is listed on the New York Stock Exchange NYSE: BABA and in 2019 reported revenue of $ 56.152 billion.

Next, we have Baidu.

Baidu Inc. is another Chinese multinational giant. It’s one of the largest AI and internet companies in the world and the very first Chinese company to be included in the NASDAQ-100 index.

In 2018, they reported a revenue of CNY 102.3 billion.

Included in their services is the Chinese search engine, Baidu Maps and an online encyclopedia, Baidu Baike with over 2 billion active users worldwide.

They also have their own online digital distribution services Baidu Apps Store and Shouji Baidu that hosts downloadable content and applications.

Another publicly-traded company who sits on the NYSE under NASDAQ: WB is Weibo.

This internet-giant company provides social networking for Chinese micro-blogging.

Part of their product categories for users is advertising and marketing customers and platform partners.

In addition, they offer third-party online games such as card games, role-playing games, and real-life simulation games.

Some are free while others can be purchased with Weibo Credit, a virtual currency.

They have a huge following of users from ordinary citizens to celebrities, public figures, organizations, businesses, media outlets, government agencies, and charities.

We have saved the best for last

Tencent, a conglomerate and a publicly-traded company on the Hang Seng Index SEHK: 700.

Based in Shenzhen, they are one of the world’s most valuable technology companies and the largest gaming company.

Also

They are also the world’s largest social media company and the largest venture capital firm.

Some of their services include social networking, e-commerce, music, mobile games, web portals, internet services, multiplayer online games, payment systems, and even smartphones.

They have over 700 million active users with 120 million paying subscribers and are the first technology company to surpass the $500 billion market value in 2018.

They have hundreds of subsidiaries spanning numerous industries which include real estate, ride-sharing, automobile, virtual reality, film production, financial services, banking, computer technology, space, AI, robotics, agriculture, renewable energy, medical, education, internet services and more.

In 2018, their reported revenue was CNY 312.694 billion.

What does this all mean?

Traders and investors can take advantage and have direct exposure to the China Internet Giants Index of the 30 largest Chinese publicly listed companies on Plus500’s platform.

China Internet Giants Index CFDs on Plus500's platform
China Internet Giants Index CFDs on Plus500’s platform

*Illustrative prices only

That’s not all

You will discover that you will be able to trade the index comprising of the companies as a whole or individually via CFDs.

Plus500 is on the London Stock Exchange, solid and reliable they offer safe trading conditions, regulated and authorized by recognized financial authorities around the globe. 

This means that you can get down to the business of trading with peace of mind not having to worry about your investments. You are in good hands.

Look:

They also offer a choice of over 2,000 instruments to trade made up of currency pairs, commodities, stocks, indices, ETFs and cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Ripple.
Let’s find out what sets them apart as a leading forex/CFD provider, here are only a few of their extremely attractive perks:

  • A free unlimited demo account with virtual money to practice trades and familiarise yourself with their platform before investing with your own money.
  • Stable platform that comes with advanced financial trading tools and graphs with all the information needed on a single screen. This makes it more convenient with all the information at your fingertips.
  • Competitive spreads.
  • Zero commissions.
  • Low minimum deposit of only $100.
  • Trading on your mobile device with alerts, financial news feeds and more.
  • Risk management tools, strategies and more.
  • Excellent and professional customer support who are well versed in all aspects of trading. The exciting news is that they can be reached almost instantaneously via WhatsApp messaging, live chat and email.
  • The Bottom Line?

    If you are looking for the best online trading experience, Plus500 is the broker who can deliver.

    The good news is that you will be among the first to have access to a wide range of trading opportunities in the new era of the global digital economy with the China Internet Giants Index and if you want to trade these companies individually, you can also invest in them via stock CFDs. 

    Here’s some interesting news:

    Plus500 constantly formulates and offer unique opportunities for their traders such as the Women in Leadership Index (Ticket symbol: BUWIPG). 

    Plus, a unique hot index: Brexit High 50 Index CFD (BUKHI50P). This sector index will give you access to trade companies that will be the most affected by the departure of the UK from the EU.

    There are so many exciting opportunities for you to invest in!

    Get Started with Plus500!

    76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

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66% of retail CFD accounts lose money.


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