It is well known that holding uncorrelated asset classes in our investment portfolio gives diversification benefits. In the same sense, diversifying among competing or rival countries or jurisdictions helps to maximize freedom by mitigating political risk. This article discuss the merits, and ease of, diversifying in a country that virtually all have never given a second thought, let alone an initial one.
So says Jayant Bhandari (internationalman.com) in edited excerpts from his original article* entitled Consider an Offshore Bank Account in Mainland China.
The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Bhandari goes on to say in further edited excerpts:
…[The country in question] —contrary to popular belief—is not a police state (certainly not for foreigners who have no political agenda), has no grand imperial ambitions (again, contrary to popular belief), and where the rule of law seems to work. That country is China – yes, China.
…Despite the negative reputation that the Western governments have built of China, there’s a large community of Americans [and other foreigners] who now live and work in China. I’ve known a lot of them for many years. They do complain about the quirks of Chinese, but they find themselves living a relatively free life.
Opening a bank account in China is mostly a breeze.
Most mainland Chinese banks will let foreigners open a bank account… They haven’t yet fully adopted the client-repelling habits of banks elsewhere. You will likely not even be cursorily asked why you want an account. They want customers and treat them with respect. As a foreigner, you will be ensured of especially nice treatment.
A passport is usually enough. They will likely accept a foreign address for communication with you. Carrying a proof of this would help, but usually is not necessary. It might even help to know someone in China who can accept your initial mail from the bank—again not usually necessary. A few dollars’ worth of renminbi will do for the minimum deposit. Of course, the rules might change, so nothing is guaranteed.
With this preparation, try:
Be mindful of the fact that even in big cities, you won’t always find an English-speaking agent so look for a branch in an area frequented by expatriates. It’s preferable to use a major bank that provides an English-language interface for the Internet.
China has recently removed visa requirement for a three-day transit stay for most countries (the U.S., most of Europe, Canada, Australia, and others), making it possible for you to quickly stop over and open an account.
Another possibility is to try the offices of a mainland bank in Hong Kong and elsewhere. They might be happy to do the needed paperwork to open an account with their corresponding bank in China.
Don’t let the “communist” label put you off about China. It’s one of the most capitalistic countries anywhere, so don’t forget China when formulating your diversification strategy. It’s not only a country where—at least for me as an outsider—the rule of law works very well, but is also a rare country whose arms the U.S. cannot easily twist.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.internationalman.com/articles/consider-an-offshore-bank-account-in-mainland-china (Copyright © 2014 Casey Research, LLC.)
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