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
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Chinese IPOs Soaring in the U.S.!

Stock-Markets / Chinese Stock Market Aug 14, 2007 - 01:16 PM GMT

By: Money_and_Markets


Tony Sagami writes: If you're worried that last week's sell off could continue, or even accelerate, you're not alone. Fortunately, there are plenty of things you can do about it.

I've already instructed my Asia Stock Alert subscribers to take profits on eight stocks, so they should be sitting on a pretty tall pile of defensive cash right now.

Better yet, many of their Asian holdings have been plowing higher despite what is happening to the U.S. stock market. Even during the Dow's painful 387-point one-day drop last week, half of the Asia Stock Alert portfolio positions posted gains.

That shows you how diversification can help protect your portfolio!

And you don't have to go that far to get diversification these days. In a moment, I'm going to tell you about a few new Chinese IPOs that went absolutely gangbusters last week … right here in the United States.

First, I want to tell you why some of these Asian investments have been powering higher.

I'd love to take 100% of the credit for being such a brilliant stock picker, but I need to give much of the credit to the fact that Asian markets have simply been red hot. Heck, the Shanghai Composite index hit a new all-time high last Thursday.

That's What Happens When an Economy Keeps Expanding More than 10% a Year!

Economic growth is still accelerating in China. According to the most recent gross domestic product report, the country swelled at an 11.9% annualized pace.

I don't think this kind of wealth-building growth is going to slow down any time soon, either.

One reason: Over the weekend, China's government said it posted a trade surplus of $24.36 billion in July. That's the second largest monthly number in history (only behind June's record $26.9 billion).

Can you imagine making $24.3 billion in just one month? Now imagine making that kind of money month in and month out!

China is swimming in cash:

Chinese M2, which measures all deposits held by financial institutions and securities brokerages as well as cash in circulation, skyrocketed to 38.39 trillion yuan (US$5.07 trillion) at the end of July, an 18.5% increase from a year earlier.

The biggest mistake most investors make is treating a trade surplus number as if it's just some random accounting entry. Nothing could be farther from the truth. Those very real dollars find their way into very real people's pockets …

They help factory owners buy more machines and hire more people …

They allow workers to buy homes and cell phones …

And they give investors more money to plow into the stock market. See for yourself:

Chinese investors opened more than a million new brokerage accounts … just last week!
  • China's mutual funds more than tripled their net assets in the first half of 2007 to 1.8 trillion yuan (US$245 billion).
  • China added 29 more mutual funds.
  • Total household deposits at banks hit 16.9 trillion yuan (US$2.2 trillion) at the end of June, even while fund assets where rising.
  • Chinese investors opened 1.05 million new accounts last week!

In other words, U.S. investors may be worried about the U.S. stock market, but Chinese investors continue to believe in their country's future.

Want to share in their enthusiasm? More great news …

More U.S.-Listed Asian Investments Are Becoming Available (And Soaring!)

Last week, two Chinese companies went public on the New York Stock Exchange.

The first is Wuxi Pharma Tech (NYSE: WX), a company that provides research and development services to nine of the top 10 pharmaceutical firms in the world. The other company, E-House (NYSE: EJ), is the largest real estate broker in China with branches in 29 cities.

Although they operate in totally different industries, these companies have two things in common: Both are based in Shanghai and both saw their shares soar more than 30% on the first day of U.S. trading. You can bet that I'll be knocking on their doors during my next China trip!

This isn't the last chance you'll have to add some Chinese spice to your portfolio, either. According to Mike Oxley, Vice Chairman of the Nasdaq, Chinese firms will become the largest group of new IPOs on the exchange by the end of next year.

Mike Oxley, Vice Chairman of the Nasdaq, says Chinese firms will become the exchange's largest group of new IPOs by the end of next year.

Even now, there are 47 Chinese companies on the Nasdaq and roughly 50 on the NYSE. That means investing in China is as easy as buying General Electric, Wal-Mart, or Microsoft.

Heck, Chinese companies are listing all over the place these days. For example, China Boqi Environment Solution Technology became the first mainland China company to list on the Tokyo Stock Exchange.

China Boqi designs, builds and installs environmental equipment used to reduce sulfur emissions for coal-fired power plants. As concerns about global warming grow, environment-related issues are becoming increasingly popular among investors. Maybe that's why the stock got off to a flying start on its first day of trading.

There are only 25 foreign companies listed on the Tokyo Stock Exchange … so you're probably one of very few investors to know about these types of hidden gems!

So if you're worried about U.S. stocks right now, remember, nobody is forcing you to keep your money stuck in them. In my book, one of the very best defenses against a bear market is taking your money where corporate profits and economic growth is the strongest. Right now, that place is Asia.

Best wishes,

By Tony Sagami

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 .

Money and Markets Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

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