Investing in China: 12 experts pick their best bets

Posted May 8th 2009 10:30AM by Steven Halpern
Filed under: QUALCOMM Inc (QCOM), PetroChina Co Ltd ADR (PTR), China Life Insurance ADS (LFC), China Mobile Limited (CHL)

Those surprised by the market's strength in recent weeks should be even more impressed with the rebound in China, where both their market and economy have proven among the most resilient in the world.

Global specialist Nicholas Vardy adds, "While the US markets are rising, Asian stocks are on fire." ETF expert Paul Tracy adds, "China funds have screamed to the top of the performance charts."

In large part, this strength is due to the country's stimulus program. Tracy points out, "To combat the sagging global economy, Chinese Premier Wen Jiabao orchestrated a massive 4 trillion yuan ($586 billion) stimulus package.

Indeed, Stephen Leeb notes, "There are now signs that the huge stimulus is bearing fruit."

Granted, investors should not be surprised by a pullback after China's strong run. Nevertheless, many of the newsletter communities best advisors continue to recommend long-term positions in China-based stocks as part of a diversified portfolio.

As such, we've turned to 12 leading newsletter editors who offer some of their favorite ideas for those seeking direct exposure to long-term growth in China.

Stephen Leeb recommends to leading energy plays for both growth and income: PetroChina (NYSE: PTR) and China National Offshore Oil Corp. (NYSE: CEO). Read the full post here.

Timonthy Lutts is impressed with the growth opportunities in the online gaming sector and recommends to NetEase.com (NASDAQ: NTES) and Shanda Interactive (NASDAQ: SNDA), the leading players in the Chinese Internet gaming industry. Read the full post here.

Keith Fitz-Gerald, writing while on an investment tour in China, looks to a higher risk speculation in the biotech sector Sinovac (ASE: SVA). Read the full post here.

Jim Trippon is partial to the wireless telecom sector as a means of investing in China. His current favorites are the two largest wireless carriers in China -- China Mobile (NYSE: CHL) and China Unicom (NYSE: CHU). Read the full post here.

For the more speculatively-inclined, Trippon also sees strong upside potential in a pharmaceutical research firm, Wuxi PharmaTech (NYSE: WX). Read the full post here.

Ian Wyatt also looks to a firm in the medical sector, recommending medical diagnostics device maker Mindray Medical (NYSE: MR). Read the full post here.

Also in the healthcare field, Tony Sagami recommends China Nepstar (NYSE: NPD), a firm that is changing the fragmented market for mom-and-pop drug stores stores to a larger pharmacy chain model. Read the full post here.

Life insurance, a growing market based on China's demographics, attract the attention of Paul Goodwin. The advisor looks to China Life Insurance (NYSE: LFC). Read the full post here.

Paul Tracy suggests investing with global fund manager Mark Mobius, a "protege of Sir John Templeton." He recommends Mobius Templeton Dragon Fund (NYSE: TDF). Read the full post here.

Global expert Nick Lanyi also recommends a diversified stake in China through a mutual fund. His choice is The China Fund (NYSE: CHN), which includes companies in China, Taiwan, Hong Kong and Macau. Read the full post here.

Nicholas Vardy recommends a diversified approach through an ETF. His recommended choice to play China is through Hong Kong, and he suggests buying the iShares MSCI Hong Kong Index (NYSE: EWH). Read the full post here.

Finally, while Qualcomm (NASDAQ: QCOM) is not a China based stocks, we include it in this special report, as Richard Moroney is recommending the shares of the wireless technology company as a play on the roll out of a 3G network in China. Read the full post here.

Tags: ceo, china etfs, china fund, china funds, china life insurance, china mobile, china national offshore, china stocks, china unicom, ChinaLifeInsurance, ChinaMobile, ChinaStocks, chl, chn, chu, cnooc, featured, lfc, mindray medical, MindrayMedical, mr, netease, ntes, petrochina, ptr, qcom, qualcomm, shanda interactive, sinovac, snda, sva, tdf, templeton dragon fund, wuxi pharmatech, WuxiPharmatech, wx

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Reader Comments (Page 1 of 1)

5-08-2009 @ 2:42PM

apuo1 said...

First of all pardon my english... hi from sunny italy.
I wish to say "no, thank you" to all this analysts.
The only one i prefer is LFC.
But i think that the better ones are not listed... why?
;)
Do they know stocks like YGE, APWR, GU, CSR, CPBY, FUQI?
Yes, I'm sure they know.
But they do not speak about...
I'm i wrong, folks?
Ciao
apuo

5-09-2009 @ 3:14PM

p said...

Great. America, invest in China, because they will buy our Treasury bills to finance the wars and deficit spending. Screw American companies.

5-09-2009 @ 6:02PM

JULIE said...

YEAH, AMERICANS SHOULD BUY CHINESE STOCK BECAUSE 1) NAFTA-WE ARE SENDING ALL OF OUR USA JOBS THERE AND OTHER COUNTRIES 2) WE ARE BORROWING MONEY FROM THE CHINESE TO SUPPORT THE AMERICAN STIMULUS PLAN BECAUSE USA PEOPLE WHO HAVE LOST A JOB BECAUSE OF NAFTA DON'T HAVE ANY MONEY TO SPEND SO THAT IS HURTING OUR ECONOMY BUT IF WE BORROW THE MONEY FROM CHINA WE CAN SPEND THE MONEY AND SUPPORT THE 300 BILLION ANNUAL TRADE DEFICIT THE USA IS IMPORTING FROM CHINA. WHAT THE &(*# p*(y ($&^*$(_)#))_%*#(&$) !!!!!!!!!!!!!!!!

5-09-2009 @ 7:55PM

The Citizen said...

When China finds out our currency is worthless we are all sol.

5-09-2009 @ 8:20PM

mark wisner said...

China manufactures 70 percent of what is sold in Wal Mart. 8% of everything bought in America is Chinese. Chinese labor is 1/40th of labor in America. Even though they have a terrible human rights record their people choose to eat rather than starve. There is very little human rights or environmental laws in China. If the Chinese government wants to move 200 thousand people to build a factory-no problem. If the Chinese Government wants to build a new hydroelectric dam and wants to flood artifacts from an ancient civilization, no problem. The cost of shipping is the only additional cost to products made in china. US labor is much higher, we have strict environmental and labor laws. Our people have an entitlement mentality. Our government and business exist to perpetuate themselves for profit and power ever eroding the faith and promise of the future of which was once the great democratic republic. Yes buying stock in China is a great idea. Except for all those who can't afford either the conscience or money.

5-09-2009 @ 9:36PM

andre said...

High tech american products are everywhere in china .You need to go there to see it, example Boeing, Otis, American standard ,IBM, Buick,and many of the heavy industrial machinery . We are a major contributor