Overseas online shopping booming in China

Overseas online shopping booming in China

Staff Reporter

2013-08-08

Buying overseas products over the internet, dubbed “haitao” in China, has become an increasingly popular way to shop for Chinese consumers, reports the Chinese-language Guangzhou Daily. The country’s “haitao clan” is on the rise thanks to the growing value of the Chinese currency, the renminbi or the yuan, and improved online payment methods. So far, the top online shopping destination for Chinese consumers is the United States, which offers not only cheaper prices compared to domestic retailers and online stores, but also provides many more options in terms of websites and delivery companies.However, while Amazon has introduced UnionPay payment functions, other online retailers such as Ashford and eBay have not, meaning for most Chinese consumers the best option is still to sign up for a credit card that can accept foreign currency transactions.

In China, most large banks offer credit cards capable of making US dollar transactions, including Visa, Mastercard and American Express. Tenpay, the country’s leading one-stop online payment platform, is also offering special international accounts that enable shoppers to buy products overseas with foreign currency after topping up their accounts with renminbi.

The weakening Japanese yen has also made Japan a popular destination for the haitao clan, though a yen-enabled credit card is recommended due to the 1.5% exchange fee charged for US dollar credit cards. The Bank of China, Industrial and Commercial Bank of China and China Merchants Bank currently all offer credit cards which support yen transactions. The Industrial and Commercial Bank of China credit card, in particular, supports both yen and US dollar transactions

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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