Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24
THE GLOBAL WARMING CLIMATE CHANGE MEGA-TREND IS THE INFLATION MEGA-TREND! - 3rd May 24
Banxe Reviews: Revolutionising Financial Transactions with Innovative Solutions - 3rd May 24
MRNA - The beginning of the end of cancer? - 3rd May 24
The Future of Gaming: What's Coming Next? - 3rd May 24
What is A Split Capital Investment Trust? - 3rd May 24
AI Tech Stocks Earnings Season Stock Market Correction Opportunities - 29th Apr 24
The Federal Reserve's $34.5 Trillion Problem - 29th Apr 24
Inflation Still Runs Hot, Gold and Silver Prices Stabilize - 29th Apr 24
GOLD, OIL and WHEAT STOCKS - 29th Apr 24
Is Bitcoin Still an Asymmetric Opportunity? - 29th Apr 24
AI Tech Stocks Earnings Season Opportunities - 28th Apr 24
S&P Stock Market Detailed Trend Forecast Into End 2024 - 25th Apr 24
US Presidential Election Year Equity Performance in the Presence of an Inverted Yield Curve- 25th Apr 24
Stock Market "Bullish Buzz" Reaches Highest Level in 53 Years - 25th Apr 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Get Ready to Hop on the Asian IPO Pipeline

Stock-Markets / China Stocks Jun 17, 2009 - 08:03 AM GMT

By: Uncommon_Wisdom

Stock-Markets

Best Financial Markets Analysis ArticleTony Sagami writes: If you’re a U.S. stock market investor, you’re probably a much happier camper today than you were a few months ago. Since the beginning of March, the S&P 500 has rallied nearly 40 percent.


If you think U.S. stocks have more room to run, you should look at Asia’s markets. In the past three months, the Nikkei 225 has climbed 32 percent, the Shanghai Composite has jumped 31 percent, the Hang Seng Index has leaped 47 percent and the Bombay Stock Exchange’s Sensex 30 Index has rocketed nearly 70 percent.

And I see even more upside potential in Asian stocks because the economic and equity story there is a heck of a lot better and about to go through the roof.

China’s Economic Numbers Continue to Improve

First of all, the Chinese economy is strong and growing. Chinese GDP grew by 6.1 percent in the first quarter, the fastest rate of any major country in the world.

The rest of the year should be even better because the economic numbers coming out of China keep getting better and better.

  • Retail sales rose 15.2 percent in May from a year earlier, up from April’s 14.8 percent.
  • Industrial output rose 8.9 percent in May on the heels of a 7.3 percent gain in April.
  • May bank lending surged 30.6 percent from the same time last year, up from April’s 29.7 percent.
  • Investment in factories, real estate and other fixed assets soared 32.9 percent in the first five months of 2009.
  • China imported 422,000 tons of copper in April, a record high and 5.7 percent more than April.

I wouldn’t call the next item an economic data point, but it sure tells me that the Chinese consumer is alive, well and spending — China is poised to become the second-largest buyer of Lamborghini in the world behind Italy within three to five years.

That economic strength has transferred into some huge Chinese stock market gains, but as strong as the Asian markets have been … IT IS ABOUT TO GET A WHOLE LOT BETTER!

China’s IPO Spigot is About to Open

I say that because the Chinese government is going to open up the spigot of new IPOs, and I expect them to take off like the red-hot tech IPOs of the late 1990s.

The Chinese government suspended the issuance of new IPOs in September 2008. But the China Securities Regulatory Commission recently removed that restriction, and you should look for a new stream of red-hot IPOs to come out soon.

In fact, 32 companies — such as China Construction Engineering, Everbright Securities, Sichuan Expressway Company, Ningbo Fuda Company, and Zhejiang China Light & Textile Industrial City Group — are lined up to go public over the next few months.

In particular, I expect state-owned China Construction Engineering to be a huge winner.

The company has built many showcase projects, including the National Aquatics Center (the Water Cube venue of the Olympic swimming competition), China Central Television’s futuristic new headquarters in Beijing, and the 1,614-foot Shanghai World Financial Center, China’s tallest skyscraper.

While nothing is guaranteed, I expect some of those IPOs to rocket through the roof.

More IPOs in India and Singapore

What’s even better is China isn’t the only Asian country going to issue a bunch of IPOs.

India, for example, is readying to sell a stake in state-owned NHPC Ltd., an extremely profitable oil-exploration company, and Oil India Ltd.

Rahul Khullar, the top bureaucrat in the department in charge of state company disinvestment said the government is likely to sell stakes in six to seven other Indian companies before by the end of this year.

Singapore too. “The market can expect at least one IPO of significant size in excess of $1 billion,” said Keith Magnus, Merrill Lynch’s managing director for investment banking in Singapore and Malaysia.

One of the reasons I expect the Asian IPOs to do so well is that investors are lined up to get a piece of what looks like can’t-miss profits.

Samchem Holdings, a Malaysian industrial chemicals distributor that sells more than 400 different chemicals to more than 2,000 customers that make everything from beds to detergent, went public last week, and the demand is through the roof.

Samchem Holdings, the first IPO in Malaysia in 2009, was oversubscribed by 11.2 times.

In my four years of covering Asian markets, I continue to run into readers every week who don’t own a single Asian stock.

If you’re one of those reluctant investors, I hope the prospects of hitting it big in the Asian IPO market gets you off the dime and into Asia.

I believe you’ll be VERY happy with the results.

Regards,

Tony

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.

Uncommon Wisdom Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

IPOInvestor
17 Jun 09, 15:37
Chinese IPOs on US Markets

Interesting to see that there are two Chinese companies scheduled for US IPOs next week...


Post Comment

Only logged in users are allowed to post comments. Register/ Log in