The Problem Is Not How To Invest And How To Invest Is The Key To Winning.

After the ups and downs of the real estate market, the horror of the domestic stock market and the depreciation of the renminbi, Chinese retail investors finally began to seriously consider overseas stocks and bonds.

This is good news for foreign brokers and Fortune Management Inc, and domestic entrepreneurs who can benefit from this easterly wind, because the capital involved may be huge.

According to Reuters, China International Capital Co said that China's high net worth individuals control 4 trillion and 400 billion (US $) dollar assets, but only 5% of their wealth is allocated overseas, compared with the global average ratio of 24%. In addition, ordinary middle-class people are also trillions of dollars in assets deposited in Chinese banks.

Some fund managers said that if the two groups reconfigured their assets in accordance with the international normal situation, up to US $6 trillion of Chinese funds might invest in overseas stocks and bonds.

Capital has started to flow out of China, especially after the summer stock market crash and the devaluation of the renminbi in August.

In November, China's foreign reserves dropped at a third fastest rate, the lowest since the beginning of 2013.

Those data do not reflect the reconfiguration of existing overseas portfolios.

These portfolios contain real estate. China has billions of dollars to invest in overseas real estate.

Domestic fund managers say that they are increasingly interested in allowing domestic mutual funds to invest in overseas assets plans, which is very revealing.

For many years, the qualified domestic institutional investor (QDII) plan failed to attract the interest of Chinese investors.

Until this year, major institutions began to chase up the trading quotas of investment quotas under the mechanism.

"QDII quota has suddenly become very expensive this year," said Shen Weizheng, fund manager of Ivy Capital, Shanghai. Ivy capital plans to launch Hongkong bond fund to meet mainland customers' demand for overseas assets growth.

"Because the renminbi is no longer strong, domestic capital is fleeing," he said.

Trading platform Interactive Brokers Asia Pacific Business Manager David Friedland said that more and more smart Chinese investors are looking abroad.

The trading platform company has offices in Hongkong and Mainland China.

"The Chinese have a strong interest in investing abroad.

People can't put all their money at home, "he said.

For many of these investors, the problem is not what to invest, but how to invest.

For official purposes, the amount of funds pferred to individuals abroad is $50 thousand per year, but many people find ways to circumvent investment in overseas products.

The Chinese government is worried that capital outflows will have an impact on the slowdown in economic growth, thus increasing capital outflow restrictions and suspending new QDII quota approval since March. China suspended its applications for new RQDII business on Wednesday.

This is a headache for people like Liu Haiying; he is the chairman of Haiying (Shanghai) Investment Consulting Co..

"I plan to introduce global macro.

Invest in global financial assets, "he said.

"There is a huge demand for this product.

The biggest obstacle now is how to get the money out. "

Brian Qian, a 33 year old Chinese wind force control company, is a typical representative of this emerging investment group.

He said he invested millions of yuan in foreign stocks and bonds this year, accounting for half of his investable assets.

"The return on investment in China is far less than before," he said.

He also said that after this summer's stock market crash, he no longer believed in the local stock market, and no longer believed in China's high-risk and high-yield financial products.

"As far as I can see, there is a relatively big bubble in China's real economy," Brian Qian said.

A middle class Shanghai surnamed Zhang

She is also concerned about US dollar assets.

"A financial crisis is approaching China, and the renminbi will depreciate. I will not invest in Chinese banks or financial products."

Local assets are becoming increasingly unpopular because of bubbles and market distortions, some of which are accompanied by shadow banking.

In contrast, returns from overseas markets are relatively stable.

The standard & Poor's 500 index,.INX, is larger than the global stock market.

The previous peak has risen by 35%, while Shanghai composite index is still down more than 40% of.SSEP.

Chinese companies are working hard to provide help to those who want to switch to overseas; Dacheng Fund Management Limited calls it the trend of the next 10 years.

The fund is building a team that specializes in helping Chinese people invest overseas.

Former Wall Street trader Liu Zhen is now the executive director of Clipper Advisors.

This is a software start-up company. Its Blue Sea Wealth mobile application is tailored to help Chinese investors choose Overseas Exchange listing funds and reconfigured according to risk tolerance and objectives.

"Every Chinese has two pockets, one for us dollars and the other for Renminbi," he said.