Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
Philippines, China and US: Joint Exploration Vs Rearmament and Nuclear Weapons - 17th Sep 19
What Are The Real Upside Targets For Crude Oil Price Post Drone Attack? - 17th Sep 19
Curse of Technology Weapons - 17th Sep 19
Media Hypes Recession Whilst Trump Proposes a Tax on Savings - 17th Sep 19
Understanding Ways To Stretch Your Investments Further - 17th Sep 19
Trading Natural Gas As The Season Changes - 16th Sep 19
Cameco Crash, Uranium Sector Won’t Catch a break - 16th Sep 19
These Indicators Point to an Early 2020 Economic Downturn - 16th Sep 19
Gold When Global Insanity Prevails - 16th Sep 19
Stock Market Looking Toppy - 16th Sep 19
Is the Stocks Bull Market Nearing an End? - 16th Sep 19
US Stock Market Indexes Continue to Rally Within A Defined Range - 16th Sep 19
What If Gold Is NOT In A New Bull Market? - 16th Sep 19
A History Lesson For Pundits Who Don’t Believe Stocks Are Overvalued - 16th Sep 19
The Disconnect Between Millennials and Real Estate - 16th Sep 19
Tech Giants Will Crash in the Next Stock Market Downturn - 15th Sep 19
Will Draghi’s Swan Song Revive the Eurozone? And Gold? - 15th Sep 19
The Race to Depreciate Fiat Currencies Is Accelerating - 15th Sep 19
Can Crypto casino beat Hybrid casino - 15th Sep 19
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19
The Unknown Tech Stock Transforming The Internet - 10th Sep 19
More Wall Street Propaganda - 10th Sep 19
Stock Market Price Structure Still Suggests We Are Within Volatile Rotation - 9th Sep 19
Stock Market Still Treading Water - 9th Sep 19
Buying Pullbacks in Silver & Gold - 9th Sep 19
Government Spending - The High Price of a "Free Lunch" - 9th Sep 19
Don't Worry About a Recession - 9th Sep 19
Large Drop in Stocks, Big Rally in Gold and Silver - 9th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

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

6 Critical Money Making Rules