Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
NVIDIA THE KING OF THE METAVERSE! - 10th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
MATTERPORT (MTTR) - DIGITIZING THE REAL WORLD - METAVERSE INVESTING 2022 - 7th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
METAVERSE - NEW LIFE FOR SONY AGEING GAMING GIANT? - 6th Jan 2022
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Buy Chinese Stocks Like Crazy!

Stock-Markets / Chinese Stock Market Apr 10, 2008 - 12:27 PM GMT

By: Money_and_Markets

Stock-Markets

Best Financial Markets Analysis ArticleLarry Edelson writes: If you're serious about making some money and you haven't already acted on my recent suggestions to buy the heck out of China, then I urge you not to waste another minute.

Look, five years ago the Shanghai stock market was flat on its back. The Shanghai Composite 300 Index was trading at the 1,300 level, and I dedicated one of my Asia trips to China. I wanted to be on the front lines to see what was going on ... and the economy I saw was on fire.


After returning to the U.S., I told everyone who would listen to buy the heck out of Chinese investments. In the five years that followed, the Shanghai stock market soared to 6,124 — gaining an incredible 371%!

Today, China's stock markets have pulled back almost 45% from their recent highs. And nearly every analyst and talking head in the U.S. and overseas is calling this the end of the Chinese economic miracle.

And yet, as I write this from Asia, I am still seeing the same economic vibrancy in China that I saw five years ago.

Chinese investors are pouring money into new construction. Into new factories. Into Macau. Into Taiwan. Into new businesses and joint ventures.

Chinese consumers are buying up goods like crazy. Retail sales are soaring. Loan growth at Chinese banks is still on fire. Now, even the rural areas of China are exploding higher with economic growth.

Towering over the Huangpu River, Shanghai is a 21st Century boomtown.
Towering over the Huangpu River, Shanghai is a 21st Century boomtown.

Some recent economic stats you need to be aware of ...

  • Bank of China Ltd., the country's third-largest bank, just reported a 31% increase in earnings!
  • Industrial & Commercial Bank of China Ltd. announced that its 2007 full-year profits jumped an amazing 65%!
  • China's 14 publicly traded banks bolstered profits by an average of 70%!
  • Sichuan Province reported a 40.1% rise in fiscal revenues in 2007 while Inner Mongolia's soared 43.4%!
  • As a whole, China's western provinces are seeing their GDP grow at an astounding 13.9%!

There's more ...

  • China's manufacturing sector saw its purchasing managers index rise to 58.4 in March, extremely bullish on the economy and the highest level since April 2007.
  • February crude oil imports soared a whopping 18.1% to 3.6 million barrels per day; February's diesel imports soared tenfold compared to a year ago.
  • China's retail sales jumped 20.2% in both January and February over the same two months last year, including a huge 33.8% increase in spending on automobiles. Over 500,000 new autos are hitting the streets in China every month.

Get the picture? Does it look like China's economy is slowing? Heck no!

China's stock market is making an important bottom.  Buy the heck out of it now!

Indeed, the charts also support buying the heck out of China. Take a look at my chart of the FTSE Xinhua China 25 Exchange-Traded Fund (ETF).

Notice the sharp decline over the last few months. But also notice the latest surge higher ... and how it's broken the downtrend line I've drawn.

That looks like one heck of a bottom has been made. Other technical indicators I follow are suggesting the same thing.

What about the China/Tibet situation? To be sure, it's a wild card that could do some damage to the Chinese economy. And for the record, I disapprove of the way Beijing has handled it so far, and the human rights violations.

However, I do believe the matter will be amicably resolved. Beijing is not about to have a total public relations disaster on its hands or another "Tiananmen Square" incident ... not with the Olympics looming large.

So here are some steps to consider ...

First , if you haven't already bought the iShares FTSE/Xinhua China 25 Index ETF, look at it now. The ETF invests at least 90% of its assets in the securities of the FTSE China 25 index and is a great overall play on China.

Second , I also suggest you consider purchasing select individual Chinese blue chips. Four of my favorites, all of which are flashing "buy" signals ...

#1: China Petroleum & Chemical (SNP) commonly called Sinopec , is Asia's largest refiner by capacity.

#2: CNOOC Ltd. (CEO). Another Chinese oil giant, CNOOC just announced record revenues and earnings for 2007. That's likely going to continue, because CNOOC's all-in cost of producing a barrel of oil is a low $16.37. With oil still over $100 and likely headed higher, imagine the earnings CNOOC is going to post!

#3: China Unicom (CHU). China's second-largest cell phone provider, making an aggressive bid to become #1.

#4: Huaneng Power International (HNP) . One of China's top power utilities, supplying power to 13 of China's provinces, as well as the municipalities of Shanghai and Chongqing. The stock appears to have bottomed out, and yields about 5% from dividend payouts.

Third , continue holding all recommended gold and natural resource positions. They will continue to benefit from intense demand from Asia.

Best wishes,

Larry

P.S. For more specific recommendations — and all my buy and sell signals — subscribe to Real Wealth Report for a modest $99 a year.

You'll get 12 hard-hitting monthly issues on the world of natural resources and today's fast-changing global economy. Plus all flash alerts and recommendations.

Real Wealth has already bagged almost $100,000 in gains for its subscribers in the past four years. I think it's the best $99 you'll ever spend. Join now!

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

girish shah
11 Apr 08, 12:49
CHINA IN THE DUMPS

this is a complete one sided picture of china

rising inflation

collapsing dollar(which the chinese have in hoards)

pegging of the currency

collapsing usa and the world economy

possible faliure of the olympics revenues

rising food prices and shortages of the same

ALL THESE ARE MAJOR NUCLEAR BOMBS WHICH WILL DESTROY THE CHINESE ECONOMY


Mike
12 Apr 08, 13:39
China crazy

And yet I have only lost money on chinese stocks...YGE, Mpel, and a few others. Timing is everything .When these stocks crash they cragh LONG and HARD... YGE is coming back ..MPEL still WAY below the 18 I bought in at. ouch


Post Comment

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