Investing in Chinese Companies

Investing in Chinese Companies

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 China Stocksr 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.  

If you are interested in China stocks discuss it with your advisor.

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