04 January 2007
The China Syndrome-Part 2
Following on from my previous post where we looked at Taiwan as a good potential mid term investment I want to touch on China.China is still one of the fastest growing economies in the World and although growth is not as high as it has been there is no real sign yet of it slowing dramatically.I believe that we will see good growth in China at least till post the 2008 Olympics and possibly beyond.The sheer size of China makes it a formidable market and one where if you pick the right stocks could generate some excellent returns over the next few years.It can be volatile so if investing I would be looking to hold the shares for 2+years with a 25% stop loss.
Some of the shares I like to capitalise on China are below :
China Medical Technologies (CMED)
Hong Kong Shanghai Bank (HBC 4% Yield)
Templeton Dragon Fund (TDF 4.5% Yield)
I also like iShares FTSE/Xinhua China 25 Index Fund (NYSE: FXI) it is up 102% in the last 18 months and 65% since June.
However you look at it China is going to become an increasingly large player on the Global Economic Stage and we really need to have some exposure to these markets.The fund route is a good option as it allows some measure of diversification-but may not deliver the opportunity for some stellar gains with indiviudal stocks such as CMED.
All for now I will report back later today hopefully on the US markets.
Best Wishes
Alan
Alan Gillies trades his own Pension fund he is experienced in Trading Stocks, Futures ,Options and Forex to read his blog on his trading tips and ideas go to
http://retirementtrader.blogspot.com
