Encouraging data earlier this month led to a bullish beginning for the markets in September. Thus far, the S&P 500 Index is up 8.8% — propelled higher on good global economic news. At the top of the stock market news is strong data from China’s manufacturing sector.
According to two recent surveys, Chinese manufacturing activity rose in August for the first time in four months. The two surveys showed production, new orders and purchasing prices all climbed higher in the month. Given the strength in the Chinese economy, I continue to expect China stocks to outperform in the coming rally with another 25% to 40% upside by year-end.
Overall, despite the inevitable volatility in the markets along the way, the unprecedented growth drivers in China will continue directing investors to where the real opportunity resides.
Here are my top five China stocks to buy as we enter October.
Good Chinese Stocks In 2014:China Unicom (Hong Kong) Ltd (CHU)
China Unicom (Hong Kong) Limited, an investment holding company, engages in the provision of GSM and WCDMA cellular, and related telecommunications services in the People's Republic of China.. The company offers cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, information communications technology services, business and data communications services, and domestic and international long distance and related services. Its 3G services include mobile Internet, mobile music, mobile TV, video handsets, mobile newspapers, and 3G data cards. As of December 31, 2010, the company served approximately 153.366 million GSM subscribers, 47.224 million fixed-line broadband subscribers, and 96.635 million local access subscribers in 31 provinces, municipalities, and autonomous regions in Mainland China. It also offers its services in the United States, Japan, and the United Kingdom. China Unicom (Hong Kong) Limited was founded in 2000. The company is based in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Unicom (Hong Kong) Limited is a subsidiary of China United Network Communications Group Company Limited.
Good Chinese Stocks In 2014:General Steel Holdings Inc. (GSI)
General Steel Holdings, Inc., through its subsidiaries, engages in the manufacture and sale of steel products in the People's Republic of China. It offers hot-rolled carbon and silicon steel sheets primarily for use in the production of small agricultural vehicles and other specialty markets; spiral-weld pipes for the energy sector primarily to transport oil and steam; and high-speed wire and reinforced bar products for the construction industry. The company sells its products primarily to distributors. General Steel Holdings, Inc. was founded in 1988 and is headquartered in Beijing, the People?s Republic of China.
Good Chinese Stocks In 2014:Perfect World Co. Ltd. (PWRD)
Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.
Good Chinese Stocks In 2014:Vanceinfo Technologies Inc (VIT)
VanceInfo Technologies Inc., together with its subsidiaries, engages in the provision of information technology (IT) services. The company offers research and development services in various phases of development, including requirements analysis, concept generation, product realization, quality assurance and testing, and technology and information transfer; and develops software products, such as middlewares, Internet protocols, and other software. It provides enterprise solutions for packaged evaluation and selection, packaged implementation, customization, regional rollout, version upgrades, and business intelligence/data warehouse, as well as enhancement, maintenance, and product support; and designs, develops, and implements software solutions to meet various client requirements, and provides maintenance services for software systems. VanceInfo also offers customized and automated testing practices, which include functional testing, globalization and localization testing, automation testing, performance testing, remote testing, and test process consulting; and globalization and localization services that comprise software and content localization, localization engineering, localization testing, internationalization engineering, and internationalization testing. The company serves technology, telecommunications, financial services, manufacturing, and retail and distribution industries primarily in China, the United States, Europe, and Japan. VanceInfo Technologies Inc. was founded in 1995 and is headquartered in Beijing, the People?s Republic of China.
