Perfect Timing to Sell Your Chinese Stocks

MC Man By MC Man, 26th Sep 2012 | Follow this author | RSS Feed
Posted in Wikinut>Business>Investment

In this blog post, we would like to guide you through the best way and timing for selling your Chinese stocks at maximum cost with minimum risk.


While quite a bit of time and research goes into selecting Chinese stocks, it is often hard to know when to pull out especially for first time investors. The good news is that if you have chosen your stocks carefully, you will not need to pull out for a very long time, such as when you are ready to retire. But there are specific instances when you will need to sell your stocks before you have reached your financial goals.

You may think that the time to sell is when the stock value is about to drop and you may even be advised by your broker to do this. But this is not necessarily the right course of action.

Stocks go up and down all the time, depending on the economy and of course the economy depends on the stock market as well. This is why it is so hard to determine whether you should sell your stock or not. Stocks go down, but they also tend to go back up.

You have to do more research, and you have to keep up with the stability of the China companies that you invest in. Changes in corporations have a profound impact on the value of the stock. For instance, a new CEO can affect the value of stock. A plummet in the industry can affect a stock. Many things all combined affect the value of stock. But there are really only three good reasons to sell a Chinese stock:

Reason #1

The first reason is having reached your financial goals. Once you have reached retirement, you may wish to sell your Chinese stocks and put your money in safer financial vehicles, such as a savings account. This is a common practice for those who have invested for the purpose of financing their retirement. Stocks in emerging markets such as China are usually of a higher risk.

Reason #2

The second reason to sell a stock is if there are major changes in the business you are investing in that cause, or will cause, the value of the stock to drop, with little or no possibility of the value rising again. Ideally, you would sell your Chinese stock in this situation before the value starts to drop.

Reason #3

If the value of the stock spikes, this is the third reason you may want to sell. If your Chinese stock is valued at $10 per share today, but drastically rises to $20 per share next week, it is a great time to sell especially if the outlook is that the value will drop back down to $10 per share soon. You would sell when the stock was worth $20 per share.


As a beginner, you definitely want to consult with a broker or a financial advisor before buying or selling Chinese stocks. They should work with you to help you make the right decisions to reach your financial goals. Alternatively, you can learn more Chinese stock analysis from our China Financial Blog which is managed by this China team.


China, Chinese, Economy, Emerging Markets, Financial, Invest, Investment, Sell Stocks, Stock Market, Stocks, Value

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