Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20
THE STOCK MARKET BIG PICTURE - Video - 19th Nov 20
Reasons why Bitcoin is Treading at it's Highest Level Since 2017 and a Warning - 19th Nov 20
Media Celebrates after Trump’s Pro-Gold Fed Nominee Gets Blocked - 19th Nov 20
DJIA Short-term Stock Market Technical Trend Analysis - 19th Nov 20
Demoncracy Ushers in the Flu World Order How to Survive and Profit From What Is Coming - 19th Nov 20
US Bond Market: "When Investors Should Worry" - 18th Nov 20
Gold Remains the Best Pandemic Insurance - 18th Nov 20
GPU Fan Not Spinning FIX - How to Easily Extend the Life of Your Gaming PC System - 18th Nov 20
Dow Jones E-Mini Futures Tag 30k Twice – Setting Up Stock Market Double Top - 18th Nov 20
Edge Computing Is Leading the Next Great Tech Revolution - 18th Nov 20
This Chart Signals When Gold Stocks Will Explode - 17th Nov 20
Gold Price Momentous ally From 2000 Compared To SPY Stock Market and Nasdaq - 17th Nov 20
Creating Marketing Campaigns Using the Freedom of Information Act - 17th Nov 20
ILLEGITIMATE PRESIDENT - 17th Nov 20
Stock Market Uptrend in Process - 17th Nov 20
How My Friend Made $128,000 Investing in Stocks Without Knowing It - 16th Nov 20
Free-spending Biden and/or continued Fed stimulus will hike Gold prices - 16th Nov 20
Top Cheap Budgie Toys - Every Budgie Owner Should Have These Safe Bird Toys! - 16th Nov 20
Line Up For Your Jab to get your Covaids Freedom Pass and a 5% Work From Home Tax - 16th Nov 20
You May Have Overlooked These “Sleeper” Precious Metals - 16th Nov 20
Demystifying interesting facts about online Casinos - 16th Nov 20
What's Ahead for the Gold Market? - 15th Nov 20
Gold’s Momentous Rally From 2000 Compared To Stock Market SPY & QQQ - 15th Nov 20
Overclockers UK Quality of Custom Gaming System Build - OEM Windows Sticker? - 15th Nov 20
UK GCSE Exams 2021 CANCELLED! Grades Based on Mock Exams and Teacher Assessments - 15th Nov 20
Global "Debt Mountain": Beware of This "New Peak" - 13th Nov 20
Overclocking Zen 3 Ryzen 5600x, 5800x, 5900x and 5950x to 4.7ghz All Cores Cinebench R20 Scores - 13th Nov 20
Is Silver Leading Bitcoin or is Bitcoin Leading Silver? - 13th Nov 20
How Elliott Waves Simplify Your Technical Analysis - 13th Nov 20
How to buy Bitcoins using debit/credit card? - 13th Nov 20
Will COVID Vaccine Kill Gold and Silver? - 12th Nov 20
Access to Critical Market Reports - 12th Nov 20
Stock Market Dow Futures Reach 30,000 on News of COVID-19 Vaccine Trials Success - 12th Nov 20
8 Terms & Conditions You Must Know Before Asking For Life Insurance Policy Quotes - 12th Nov 20
Gold Stocks Post 2020 US Election Outlook - 11th Nov 20
Champions’ League Group Stage Draw: All You Need To Know - 11th Nov 20
Stock Market Secular Trend - 11th Nov 20
Stock Market Correction Curtailed by US Election - 11th Nov 20
What Causes a Financial Bubble? - 11th Nov 20
Ryzen 9 5900X RTX 3080 - Scan.co.uk vs Overclockers.co.uk UK Custom PC System Builder Review - 10th Nov 20
Killing Driveway Weeds FAST with a Pressure Washer - Saving Block Paving from LOTS of WEEDs - 10th Nov 20
Trump Fired, Biden Hired, What Next?  - 10th Nov 20
Looking for a Personal Loan? Here Is What You Have To Know  - 10th Nov 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

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

© 2005-2019 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

6 Critical Money Making Rules