As far as I know, Chinese individuals can invest up to $50,000 per year outside the country, so they could buy stocks on US exchanges. Inside the country there are no limits on the individual investments on the Shenzhen or Shanghai markets.
The environmental situation in China is changing. Cities are increasingly regulating polution, forcing many high polluting industries to the outlying areas. The cities are also not offering the same incentives to polluting operations as they would non-polluting ones.
Transparency is still a very big problem in China. Even the large newly public banks have pretty opaque financials compared with their US counterparts. However, the overall situation continues to improve. Financial reports from small or medium companies in China are completely unreliable, IMO. Only those of the huge, large cap indistries are close to Asian standards for accounting, which is not even US standards.
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