Deposit your money in a foreign bank or two – Part 2

Moving on from Latin America, we travel to china in order to investigate its recent burgeon in Chinese banking. China is the world’s largest creditor that holds more cash than any other nation. As long as Chinese banks are careful about who they provide loans to, China will experience great economic wealth in the years to come. China’s residents are experimenting with credit card loans and mortgages, two vehicles that will explode the value of China’s banks.

Here’s a bank that I WOULD NOT BUY NOW, but still watch in hopes of purchasing shares in the years to come.

China Construction Bank Corp currently trades on the Hong Kong stock exchange, but I expect to see some ADRs(American Depository Receipts) sooner or later. The bank was recently incorporated from China Construction Bank and is one of the four largest banks in China. CCB has experienced losses over the past three years, but I think this is a short term trend. With the vastly growing Chinese population at the point of explosion, this bank will see better days.

My other Chinese banking pick raised $19 billion dollars in US in the world’s largest IPO share offering in history. Industrial and Commercial Bank of China hold $890 billion dollars in assets and has generated the capital to establish a position as the most dominant bank in China.