First of all, there are many savvy investors and economists out there that believe China is the growth engine of the world stock markets.
Still others believe that China will become the dominant consumption country, even outdoing the United States, in another 5 to 10 years.
It is true that there GDP growth has been impressive for several years now and only recently in the recession did it even slow down.
For comparison, the US has been growing at rates between 2 to 5% (non-recession) while China has been growing at rates between 8 to 15% over the last 10 years or so.
That is a huge disparity that won't change anytime soon.
Therefore, it is prudent for investors to identify the top stocks to buy in China to profit from this very strong growth.
I am also in the camp that China will be very important to the worldwide economy and to many companies' profits throughout the world in the next 10 years.
More importantly, I think you should focus on identifying companies in China that will significantly benefit from their continued middle-class growth and fast-growing consumer product and leisure consumption.
As part of this overall picture, investors should know that China is starting to crack down hard on their real estate speculators in order to try and avoid a huge real estate bubble implosion like we had in the US.
Why is that positive for investments in the stock market? Because it will free up tens of billions of dollars that will move out of Chinese real estate and into the Chinese stock market.
China is a country full of massive speculative in every aspect of investing or gambling.
They are the biggest speculator and gamblers in the world by a wide margin.
China's recent export numbers in June 2010 were up almost 50% year over year.
And this is all in a slow worldwide economy.
Can you imagine what will happen when the world starts moving forward in a stronger recovery and expansion cycle in the next few years or so? China also decided in June 2010 to let their currency, the renminbi, float freely instead of pegging it to the US Dollar.
While it still doesn't really float freely, despite their rhetoric to other countries and the US, it will start to go up.
I am skeptical because it was never truly pegged to the US Dollar and it was kept artificially low through manipulation.
Normally, the rising currency level of a country would naturally make their goods more expensive and therefore less attractive.
This would lead to a decrease in their exports due to lost sales to other countries' goods.
However, in China's case, their price increase will not end up affecting their exports because they are already the cheapest provider of goods by a huge margin.
In other words, their goods will still be the cheapest relative to other countries.
So what really happens is that they are simply increasing their bottom line profits by taking in much more money.
So their export business will produce a much bigger bottom line for further domination.
Investors should realize that investing in China can be a risky proposition that will include large market swings up and down, and probably more weak and choppy periods going forward in the next few years.
However, the top stocks to buy that I highlight below should turn out to be rewarding for patient long-term investors.
The key for profiting is to capitalize on China's megatrends and their explosive middle class growth.
Take advantage of the recent general market selling and China's market weakness and start picking up these stocks on pullbacks.
Here is a list of 12 companies that I consider China's best stocks to buy for investors.
1) BIDU - Baidu Inc 2) CHT - Chunghwa Telecom 3) CTRP - Ctrip.
com Intl 4) EDU - New Oriental Edu and Tech Corp 5) FMCN - Focus Media Holdg Ltd 6) GSH - Guangshen Railway Co 7) NTES - Netease.
com Inc 8) PTR - PetroChina Co Ltd 9) SHI - Shanghai Petrochemical 10) SINA - Sina Corp 11) SOHU - Sohu.
com Inc 12) YZC - Yanzhou Coal Mining Co Research each company on your own, scale in slowly, and remember that any investment in China can be potentially volatile but it should be rewarding in the future.
Still others believe that China will become the dominant consumption country, even outdoing the United States, in another 5 to 10 years.
It is true that there GDP growth has been impressive for several years now and only recently in the recession did it even slow down.
For comparison, the US has been growing at rates between 2 to 5% (non-recession) while China has been growing at rates between 8 to 15% over the last 10 years or so.
That is a huge disparity that won't change anytime soon.
Therefore, it is prudent for investors to identify the top stocks to buy in China to profit from this very strong growth.
I am also in the camp that China will be very important to the worldwide economy and to many companies' profits throughout the world in the next 10 years.
More importantly, I think you should focus on identifying companies in China that will significantly benefit from their continued middle-class growth and fast-growing consumer product and leisure consumption.
As part of this overall picture, investors should know that China is starting to crack down hard on their real estate speculators in order to try and avoid a huge real estate bubble implosion like we had in the US.
Why is that positive for investments in the stock market? Because it will free up tens of billions of dollars that will move out of Chinese real estate and into the Chinese stock market.
China is a country full of massive speculative in every aspect of investing or gambling.
They are the biggest speculator and gamblers in the world by a wide margin.
China's recent export numbers in June 2010 were up almost 50% year over year.
And this is all in a slow worldwide economy.
Can you imagine what will happen when the world starts moving forward in a stronger recovery and expansion cycle in the next few years or so? China also decided in June 2010 to let their currency, the renminbi, float freely instead of pegging it to the US Dollar.
While it still doesn't really float freely, despite their rhetoric to other countries and the US, it will start to go up.
I am skeptical because it was never truly pegged to the US Dollar and it was kept artificially low through manipulation.
Normally, the rising currency level of a country would naturally make their goods more expensive and therefore less attractive.
This would lead to a decrease in their exports due to lost sales to other countries' goods.
However, in China's case, their price increase will not end up affecting their exports because they are already the cheapest provider of goods by a huge margin.
In other words, their goods will still be the cheapest relative to other countries.
So what really happens is that they are simply increasing their bottom line profits by taking in much more money.
So their export business will produce a much bigger bottom line for further domination.
Investors should realize that investing in China can be a risky proposition that will include large market swings up and down, and probably more weak and choppy periods going forward in the next few years.
However, the top stocks to buy that I highlight below should turn out to be rewarding for patient long-term investors.
The key for profiting is to capitalize on China's megatrends and their explosive middle class growth.
Take advantage of the recent general market selling and China's market weakness and start picking up these stocks on pullbacks.
Here is a list of 12 companies that I consider China's best stocks to buy for investors.
1) BIDU - Baidu Inc 2) CHT - Chunghwa Telecom 3) CTRP - Ctrip.
com Intl 4) EDU - New Oriental Edu and Tech Corp 5) FMCN - Focus Media Holdg Ltd 6) GSH - Guangshen Railway Co 7) NTES - Netease.
com Inc 8) PTR - PetroChina Co Ltd 9) SHI - Shanghai Petrochemical 10) SINA - Sina Corp 11) SOHU - Sohu.
com Inc 12) YZC - Yanzhou Coal Mining Co Research each company on your own, scale in slowly, and remember that any investment in China can be potentially volatile but it should be rewarding in the future.
SHARE
