(NYTIMES) – Americans have good reasons to be wary of investing in China. It’s easy to get caught up in the headlines and go no further.
It’s easy to be turned off. Yet, with some caveats, I think the benefits of putting some of your money into Chinese stocks and bonds are more compelling than the reasons for staying away.
Chinese stocks may be part of your retirement nest egg
Many Americans already hold Chinese securities indirectly without realising it, because global stock and bond funds contain them. Until I checked, I wasn’t sure about my own retirement accounts, which mainly contain Vanguard index funds. Yes, a smattering of Chinese stocks and bonds are tucked away in them. Other large fund providers, like Fidelity, BlackRock, State Street and T. Rowe Price, include Chinese securities in global funds.
If you learn that you’re invested in Chinese securities as part of a broadly diversified portfolio, don’t panic, on purely financial grounds,…