Investing abroad

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14. Investing in Asian companies

Information on Asian companies is even harder to come by than that for European companies, especially if your only language is English. But certain markets such as India are much better served than others.

Although Japan boasts the world's second largest economy, its markets are still inaccessible to the average private investor. It is vital you familiarise yourself with local idiosyncrasies before attempting to deal. For example:

Shares are usually bought in round-number units of 1000, or occasionally 100, meaning that even the minimum purchase size can sometimes cost many thousands of pounds. However, some brokers offer to deal in 'mini-stocks', i.e. multiples of one-tenth of a unit.
There are limitations on how far prices are allowed to move up or down in a day before trading is suspended. These vary from share to share, but a 2,000 yen limit would be fairly typical. Ask your broker for details.

Hong Kong, despite its aggressively capitalist reputation, remains a tough market for westerners to research. But dealing has become much easier thanks to the internet. If you share the view that China will become the dominant market of the 21st century, Hong Kong is your best way in at present, though you could also try Chinese trusts in the UK or Chinese ADRs in the US.

The sites listed below provide information and research on these and other major markets throughout Asia. All of them are in English, or offer an English-language option:

1. Why invest abroad? 2. Risk and reward in foreign investment 3. Custody risk 4. Currency risk 5. UK companies are foreigners too 6. Foreign unit and investment trusts 7. Picking foreign trusts 8. How to make the most of trusts 9. Tracker funds for foreign markets 10. Foreign companies on the London exchange 11. American Depository Receipts 12. Investing in American companies 13. Investing in European companies 14. Investing in Asian companies 15. Investing in other markets 16. Dividends and withholding taxes 17. Markets go global 18. Conclusion

• Mobius on Emerging Markets