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:Guangshen Railway Company Limited (GSH)
Guangshen Railway Company Limited, together with its subsidiaries, primarily provides passenger and freight transportation services on the Shenzhen-Guangzhou-Pingshi railway in the People's Republic of China. The company?s freight services include the transportation of full load and single load cargo, containers, bulky and overweight cargo, dangerous cargo, fresh and live cargo, and oversized cargo. It also offers long distance passenger transportation services. In addition, the company engages in the sale of food, beverages, and merchandise on board the trains and in railway stations. Further, it engages in the operation of a travel agency, as well as provision of services relating to warehousing, hotel management, cargo loading and unloading, catering management and services, advertising, and freight transportation and package agency services. Additionally, the company provides property management services, as well as involves in the supervision of construction projects. As of December 31, 2009, it operated 218 pairs of passenger trains, including 100 pairs of inter-city high-speed passenger trains between Guangzhou and Shenzhen; 13 pairs of Hong Kong Through Trains; and 105 pairs of long-distance passenger trains. The company was founded in 1996 and is based in Shenzhen, the People's Republic of China.Good Chinese Stocks In 2014:China XD Plastics Company Limited (CXDC)
China XD Plastics Company Limited, through its subsidiary, Harbin Xinda Macromolecule Material Co., Ltd., engages in the development, manufacture, and distribution modified plastics primarily for use in the production of automobile parts and components in the People?s Republic of China. It specializes in producing automotive modified plastics that are used to produce various types of auto parts, including exteriors consisting of automobile bumpers, rearview and sideview mirrors, and license plate parts; interiors, such as door panels, dashboards, steering wheels, and glove compartment and safety belt components; and functional components comprising air conditioner casings, heating and ventilation casings, engine covers, and air ducts. The company also provides specially engineered plastics for use in oilfield equipment, mining equipment, vessel propulsion systems, and power station equipment. Its automotive-specific modified plastics are used in approximately 60 automobile brands in China. The company was founded in 2004 and is based in Harbin, the People?s Republic of China.Good Chinese Stocks In 2014:China Life Insurance Company Limited (LFC)
China Life Insurance Company Limited provides life, annuities, accident, and health insurance products in China. Its individual life insurance and annuity products consist of whole life and term life insurance, endowment insurance, and annuities. The company also engages in the writing of life insurance business. In addition, it offers group life insurance products, including group annuity products, and group whole life and term life insurance products to enterprises and institutions, as well as universal life products. Further, the company provides short-term insurance products comprising short-term accident insurance and short-term health insurance products; accident insurance products, such as individual accident insurance and group accident insurance; and health insurance products, including defined health benefit plans, medical expense reimbursement plans, and disease specific plans. It distributes its products through its direct sales representatives and exclusive agents, as well as through intermediaries comprising insurance agencies and insurance brokerage companies, non-dedicated agencies, bancassurance arrangements, travel agencies, and hotels and airline sales counters. The company was founded in 1949 and is based in Beijing, China. China Life Insurance Company Limited is a subsidiary of China Life Insurance (Group) Company.Advisors' Opinion:
- By Tom Bishop At 2011-9-13
China Life Insurance is the largest insurance provider in China, a country where insurance coverage among the citizens of China is relatively new. Indeed the concept of having life and health insurance is not as mainstream in China as in the US. And with the largest population in the world, China is a great growth market for insurance. LFC has over $11 billion in cash and has diversified their investments across other industries including construction, banking and power generation. I like this stock here despite high valuations.
Good Chinese Stocks In 2014:Renesola Ltd. (SOL)
ReneSola Ltd, together with its subsidiaries, engages in the manufacture and sale of solar wafers and solar power products. It offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules. The company also provides cell and module processing services. Its products are used in a range of residential, commercial, industrial, and other solar power generation systems. The company sells its solar wafers primarily to solar cell and module manufacturers. It principally operates in Mainland China, Singapore, Taiwan, Hong Kong, Korea, India, Australia, Germany, Italy, Spain, Belgium, France, the Czech Republic, and the United States. The company was founded in 2003 and is based in Jiashan, the People?s Republic of China.Advisors' Opinion:
- By Martin At 2012-2-22
Renesola Ltd.(NYSE: SOL) closing price in the stock market Tuesday, Jan. 3, was $1.61. SOL is trading -6.98% below its 50 day moving average and -45.69% below its 200 day moving average. SOL is -87.85% below its 52-week high of $13.25 and 11.03% above its 52-week low of $1.45. SOL‘s PE ratio is 1.56 and its market cap is $139.77M.Renesola Ltd. engages in the manufacture and sale of solar wafers and solar power products together with its subsidiaries. SOL offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules.
