Top 5 Financial Tips for Expats in China
Many foreigners living in China may have high salaries with great benefits. But no matter how much the salary is, the key point is managing, growing and protecting the money you make. For that reason we present the top seven tips for staying financially secure in China.
This involves insurance, particularly medical insurance. Once you have created your wealth, the last thing you want to do is loose it.
Let's say you've get in a traffic accident or get diagnosed with a severe medical condition. An accident or illness can set you back hundreds of thousands of RMB – especially when using expensive expat hospitals – thus wiping out your savings.
But by having just basic inpatient coverage, your insurance provider will cover all the medical bills to help preserve the wealth you've amassed.
Just in the way insurance preserves the money you've made, investing grows it. Banks in China (and practically all over the world) provide very low interest rates – barley enough to keep up with inflation.
Why not invest in funds that grow your hard-earned cash faster? For example, if your investment grows at a rate of 10% per year, due to the magical powers of compound interest you will double your money in just seven years!
Remember, all banks in China are controlled by the government. Thus, you may want to be careful with how much money you stash with them. A general rule is: don't store what you can't afford to lose – it's definitely not recommended to have your entire savings in one Chinese bank.
A better option could be offshore banking. By placing some of your savings offshore in a secure/regulated jurisdiction (while leaving a bit in your Mainland bank for spending money), you can rest assured that your wealth is in a safe place. But rules about foreign currency have been stricter than before.
（以上链接到5月27文章1 Month Later, Transferring Money Overseas will Have New Rules）
Most pension funds require that you live in or work in the country of where the retirement fund is domiciled. So, if you're living in China, it may be impossible to keep that fund growing.
If this is the case, did you know you can transfer your pension to a provider that will allow you to not only grow but access your funds outside of your home country? If you don't transfer your pension, it'll literally just sit there collecting dust, so get that money which is rightfully yours back into your possession!
Investing in Chinese Stocks & Property
Property, stocks, bonds… all is considerable. But investing in China is not only very tricky due to extreme regulations, it's also quite risky. The government has strict restrictions on foreigners investing in the A-shares market.
The companies that make up the index, which includes the 300 largest and most liquid securities trading on the Shanghai and Shenzhen stock exchanges, will not be household names to most investors. The top two holdings are Ping An Bank and China Vanke.