Fund Managers Investing in China via Neighboring Exchanges

Investors clearly want a piece of the China pie. And, they're rushing in to get it. The only difference is that they're now directly investing in Chinese companies listed on the exchanges in Hong Kong and Singapore, and the less-regulated exchanges in Shanghai and Shenzhen, according to The Wall Street Journal.

While this is a striking departure from the traditional method of investing in China through ADR's or Chinese stocks that trade on U.S. exchanges, investment giants such as Morgan Stanley and J.P. Morgan are putting their wealthy clients' money directly into Chinese companies or investment vehicles such as hedge funds.