Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

China's Golden Investment Opportunities Beyond the Olympics

Stock-Markets / China Stocks Aug 19, 2008 - 06:34 AM GMT

By: Money_and_Markets

Stock-Markets

Best Financial Markets Analysis ArticleTony Sagami writes: This is proving to be one of the most exciting research trips to Asia that I have ever made. Not just because of the buzz surrounding the Olympics, but mainly because of the cascade of investment opportunities that I am uncovering during my stay.

In fact, my biggest problem is that I am finding so many amazing growth stories, that narrowing down the list to the best that China has to offer is not going to be easy. I now know how San Francisco 49ers coach Bill Walsh must have felt when trying to decide what quarterback — Joe Montana or Steve Young — to start.


Beijing's "Main Street" Is Bustling With Business

To give you an idea, let me take you on a walk around the corner from my hotel and down Wangfujing Street in Beijing.

Wangfujing is the main commercial retail street in Beijing and is packed with both tourists and affluent Chuppies (Chinese yuppies) seven days a week.

It's a 700-year-old commercial boulevard near the Forbidden City and aims to rival New York's Fifth Avenue, the Champs-Elysees of Paris and the Ginza in Tokyo. It has two major shopping malls, several large department stores, and hundreds of shops including dozens of western businesses like Nike, Starbucks, Apple, McDonalds, as well as high-end retailers such as Tiffany.

Affluent chuppies — Chinese yuppies — are driving the surge in high-tech items such as cell phones and computers.
Affluent chuppies — Chinese yuppies — are driving the surge in high-tech items such as cell phones and computers.

So much for setting the locale. Now, here are some pertinent observations:

One of the first things I do after landing in a foreign country is convert my U.S. dollars into local currency. I've learned that the currency desks at airports offer some of the worst exchange rates so I head straight for the Bank of China (Hong Kong: 3988), the fifth largest bank in the world, for the best exchange rate. I've never invested in a Chinese bank and after witnessing the steady stream of banking customers, I may have to re-think my views of Chinese banks.

I prefer green tea over coffee, but there is seldom an empty seat at Chinese Starbucks stores that I pass by. And not just in the morning, either. Starbucks has become one of the most popular places for young Chinese couples to go for dates. Starbucks may be stumbling in the U.S., but business is BOOMING in China.

I always hit a local grocery store when I travel to stock up on fresh fruit and drinks. I do so because I get tired of the high-calorie hotel food and because (according to my children) I am a big cheapskate. I was in luck this time because my hotel was very close to a Carrefour (CA: PA), a large French retailer that has 116 stores across China.

There is a Chinese saying: "A trip to Beijing is not complete if you miss seeing the Great Wall or dining on Peking Duck." Ask any Beijing resident and most of them will tell you that the very best Peking Duck is made by Quanjudge, a restaurant established in 1864. In the last 136 years, Quanjude has expanded to Hong Kong, Shanghai, and many other Chinese cities. Quanjude went public last November and shot up by 271% on its first day of trading.

I stick out like a sore thumb when I'm in China. I'd like to think it is my camera that gives me away as a tourist, but the truth is that I'm just too darn fat. That's okay because the Chinese are very friendly people and love to practice their English on willing Americans. When I complimented their good English, they blushed and gave all the praise to the English-language school, New Oriental Education (NYSE:EDU), that they recently attended.

Beijing in August can be as hot and humid as Florida, which was why I was delighted with the cool, air-conditioned room at the Beijing Northeast Marriott Courtyard (NYSE:HOST) for an afternoon break. Those air conditioners were made by Suning (Shenzhen:2024), one of China's largest household appliance makers.

Even though I absolutely love Chinese food, I find myself craving some American food after a few days. Finding American food is easier than you may think because there are more than 2,600 Pizza Hut and KFC (NYSE:YUM) restaurants spread over China. I always have to wait in line, though, because I have never seen an empty KFC or Pizza Hut in China.

I confess, I do enjoy a beer with spicy food and my favorite Chinese beer is Tsingtao, the most popular beer in all of China. Last year, Tsingtao (Hong Kong: 0168) sold 5 billion liters of beer worldwide and is 27% owned by Anheuser Busch ... I mean InBev ... now.

Every office building elevator I've taken has a bright LCD screen that displays the news of the day as well as short advertisements. There isn't anything to do but watch the screen while you wait for your elevator, so everybody watches them and companies are eager to advertise on them. Focus Media (Nasdaq: FMCN) is the largest advertising company in China.

The Olympic Village has several computer kiosks set up for tourists to check their e-mail. What computer brand do you think it is? Chinese PC maker Lenovo (Hong Kong:0992), the fourth largest computer company in the world.

I wasn't surprised to see the Nike's (Nasdaq: NIKE) famous swoosh logo plastered around the Olympic Village. What did surprise me was the number of Chinese feet wearing Nike shoes. Nike and the Chinese company it hires to manufacture its shoes, Yue Yuen International (Hong Kong: 0551), must have all the business they can handle.

Speaking of fashion, I can't believe the number of Louis Vuitton (MC: PA) bags on the street. While I am sure that some of them are knock-offs, I suspect that one out of every 3-4 Chinese women is clutching a Louis Vuitton handbag.

Domestic and foreign retail merchandise is flying off the shelves throughout China.
Domestic and foreign retail merchandise is flying off the shelves throughout China.

And that is just the tip of the business iceberg. I could go on and on, but I need to digest some of my meetings (and the fantastic meals I've enjoyed) before I pull the trigger on any new investments.

China's Due For a Post-Olympic Boom

One thing I do know, however, is that the opportunities are great, as well as the timing. According to some HSBC research, the stock market of Olympic hosts increased an average of 21% in the 12 months after the games.

Those are impressive numbers, but I can tell you that host countries of the Athens and Sydney Olympic Games didn't have a fraction of the booming economy that China is enjoying now. If the Chinese stock market enjoys a similar post-Olympic boom, its returns should be several times as much.

In fact, I think China will be the best performing market in the world in 2009, and I hope you've added enough Chinese spice to your portfolio to take advantage of what could be the biggest post-Olympic boom of all time.

Best wishes,

Tony

P.S. While in China, I'm sending my #1 recommendation to Asia Stock Alert subscribers. Not only am I naming the company, and giving all the important background details ... I'm providing specific trading instructions.

If you're not a subscriber, sign up now for a risk-free trial to Asia Stock Alert . If you subscribe by 3 p.m. on September 12, you'll get my new China recommendation the minute I fire it off, plus you'll be able to immediately download six special reports on other great Asian stocks. Click here for all the details.

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

© 2005-2022 http://www.MarketOracle.co.uk - 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