Foreign Markets Question
Ok, China's a great place to be - but what stocks can we invest in for the long term?
Answers
258 points
Hillcat88 answered 4 months ago …
China market is still a policy market. Don't pick on just one or two stocks as no matter how good they look to be, you never know what future policy may affect their price. Like China Petro, whether it can make decent profit this year depends very much on whether there would be a tax reduction in the next two months. Like China Mobile there is policy consideration underway for the re-dividing of service by the government amount the three big service providers.
The best choice is also FXI, ETF for 25 biggest Chinese companies trading in Hong Kong market.
2030 points
MNSL answered 4 months ago …
It is better to buy stocks trading in other stock exchanges than in China and Hong Kong stock exchange. Because stocks prices are very high at the moment in these countries .It is better to invest when we see bear market or strong correction in these stock exchanges to get long term return.
You can find some undervalued stocks exposure to China in other stock exchanges such as Singapore and New Zealand.
103 points
Grizzly answered 4 months ago …
There are many good growth opportunities in China that trade like China Mobile on the NYSE. English language schools are big. The best known in China is New Oriental Education (EDU). Less known is China Education Alliance (CEUA). Travel is growing in leaps and CTrip (CTRP) is on everyone's radar as the top online booker of flights & hotels. Less known is United Travel Group (UTVG) which is buying up the tradtional travel agencies around China. Traditional agencies are still the #1 choice for domestic travel. The best airline is China Southern (ZNH) and priced well after being beat down by fuel prices and the down market. Domestic airline traffic has huge growth possibilties as most of the middle class starts to fly for the first time. It continues to profit the best of all the Chinese airlines. As computer use grows then look to the best internet portals. 2 of the best are sina.com (SINA) and 163.com (Netease or NTES). A less known one here is also one of the most popular websites for Chinese. It also has an incredibly dominant share of the online chat. Website is QQ.com owned by Tencent Holdings (TCEHF or 0700.hk in Hong Kong). This company's stock price has loads of headroom. People talk about Sohu.com because they have the official Olympic website but their profit margin isn't as good as the others. After the Olympics watch SOHU fall. Factory safety is growing and China Fire & Security (CFSG) is growing with it. Real Estate- EHouse (EJ) is the online leader. Resources- try Ivanhoe Mining (Canadian but trades here Nyse IVN), China Shen Zhou Mining (Amex SHZ), Zijin Mining (gold- ZIJMF), Jinshan Gold Mines (JINFF). Advertising- Focus Media (FMCN) - dominant position. Insurance- everyone knows China Life but Ping An is #2 (PIAIF).
Read more from Grizzly flag as abuse great answer102 points
Tootoughtobend answered 3 months ago …
SECURITY!!! With a very low policemen/women to public count, CSR is set to grow. CSR, with its total-city TV security coverage now being deployed in two major ares fpr traffic control and visual monitoring of hi-people/traffic areas is growing quite rapidly. CSR is also expanding in home security fields and has aquired two established companies to help in their quick growth and expansion. CSR will also be a big player in the olympic security team.
Tootoughtobend.
