China's economy has been soaring for some time. It is possible the growth
potential is only at the starting point. During the years of its world
seclusion. China as a country amassed trillions of dollars in its coffers.
American companies that have relocated some of their operations to China has
added even more capital to the China economy. The Chinese are wise investors and
do not seem to make a bad deal in any of their financial transactions. China
calls the shots in the deal making process.
This year in particular China is going through a massive infra structure and
building phase within China to prepare for the 2008 Olympics. This factor has
increased China's tremendous building phase in manufacturing aluminum, building
trades and the railroad industry. In the area of communication China has stepped
up its manufacturing and distribution of products. China also has plans to build
a small economy car called the Chery Automobile.
For all the reasons mentioned above and the overall strength of the China
economy this could be a good time to buy China stocks. The average American can
purchase China stock on the New York Stock Exchange and NASDAQ Exchange. The
other avenue available is the mutual fund or spider that is geared to Asian or
China investments only. These funds do exist and are doing exceptionally well.
Specific China Stocks:
The need for raw materials and manufacturing of materials is a high priority
for China. One particular shining star is Aluminum Corp China. It trades on the
New York Stock Exchange under the stock ticker ACH. This is an $8.7 billion
dollar market cap company. It has seen tremendous gains in the past two years.
The growth spurt almost seems endless due to China's demand for aluminum and
other metals. The stock is currently selling in the high $60 range. The major
institutional holders are John Hancock Trust-Natural Resources, Allianz, Goldman
Sachs and other prized investor funds.
In the technology areas Chinese companies have some interesting choices. The
web company and software technology and mobile phone application company CDC
Corp. is a low cost stock to watch. The stock sells under the stock ticker
CHINA. It is currently a $6.40 stock that can easily make its mark at $11 and
higher. The Olympic 2008 event in Beijing is expected to boost their
technologies.
A great information and search engine company is Baidu. It trades under the
stock ticker BIDU. For whatever reason the brains on Wall Street love this
stock. It sells in the $200 plus range, but it rivals the likes of Google. It is
a stock to watch.
Mutual Funds:
The investor looking to invest in China and Asian Markets should definitely
consider the mutual funds offered by various family of funds. Nearly all of the
large fund companies have a fund that is designed for for exposure to the growth
in China. Alger China Growth, Thornburg Global Opportunities, Evergreen
Opportunities Fund, American Funds, Oppenheimer and Allianz all have great funds
with good returns.