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
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

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