Tony Sagami, Asian stock whiz, advises investors of ways to invest in China. While the U.S. is supposed to expand 1 percent or 2 percent, the People’s Bank of China issued its new 2007 forecast last week, saying it expects the country’s GDP to expand 9.8 percent for the year. In this issue of Money and Markets, Sagami five basic ways investors can invest in China.
Tony Sagami, Asian stock whiz, advises investors of ways to invest in China. While the U.S. is supposed to expand 1 percent or 2 percent, the People’s Bank of China issued its new 2007 forecast last week, saying it expects the country’s GDP to expand 9.8 percent for the year. In this issue of Money and Markets, Sagami five basic ways investors can invest in China.
The People’s Bank of China issued its new 2007 forecast last week, saying it expects the country’s GDP to expand 9.8 percent for the year. Although 9.8 percent is slightly less than the 10 percent-plus growth China has been enjoying, that kind of rise is still pretty darn impressive. And remember, the Chinese government has consistently underestimated its country’s growth by a wide margin,” says Tony Sagami.
A lot of investors recognize that Asia is where the growth is these days. But for some reason, they never put any money to work in foreign markets. After all, there are plenty of ways to invest,” Sagami adds.
Here are five basic ways to invest in China:
- Exchange-traded funds: We’ve been telling you a lot about ETFs lately. That’s because these investments can give you a diversified stake in a particular sector, index or country in one shot. These investments have soared in popularity, and there are several that can give you direct exposure to China and its mega-growth neighbors.
- Mutual Funds: ETFs are great, but don’t forget about traditional, actively-managed mutual funds, either. Some favorites: are U.S. Global’s China Region Opportunity, Fidelity’s China Region and T. Rowe Price’s New Asia.
- Chinese companies on U.S. exchanges: 78 Chinese companies are listed on the New York Stock Exchange. In fact, some of the largest and most profitable companies in all of China can be found on U.S. exchanges. For example: China Mobile, China National Offshore Oil Company and Guangshen Railways.
- Chinese companies on foreign exchanges: If you’ve never bought a stock on a foreign stock exchange, you’ll be surprised at how easy it is. All you need is a broker with an international trading desk and the ticker symbol of the stock. A lot of really attractive Chinese companies are listed on the Hong Kong Stock Exchange, but some can also be found on the exchanges in Singapore, London, Shenzhen, and Shanghai.
- U.S. companies doing big business in China. U.S. companies have been doing business in overseas markets for a long time. But these days, some American firms are getting the bulk of their revenues from outside the U.S. For example, both Yum Brands (runs Pizza Hut, Taco Bell, and KFC; and Las Vegas Sands garner more than half of their sales from outside the U.S.
Sagami advises, “Which investment is right for you depends on a lot of things, including how aggressive you are, whether you’re more of a do-it-yourselfer, and how focused you want to get. But all of these Chinese investments stand to do very well in 2007.”
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About Dr. Martin Weiss & Money and Markets
Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Wendy Montes de Oca at 561-627-3300 or visit www.moneyandmarkets.com.
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