By George Leong, B.Comm. | August 15, 2014
The Chinese economy is showing signs of stalling, but there are numerous areas that continue to show decent growth metrics, including automobiles and mobile phones.
Now, if you think AT&T Inc. (NYSE/T) or Verizon Communications Inc. (NYSE/VZ) are big, take a look at China Mobile Limited (NYSE/CHL). China Mobile is the largest mobile phone operator in China, with about 790 million subscribers as of June 30—that’s more than the entire … Read More
By George Leong, B.Comm. | July 18, 2014
A few years ago, investors couldn’t get enough of Chinese stocks. This led to numerous frauds committed by crooks in China that has since tarnished the reputation and reliability of all Chinese companies, whether they’re legitimate or not, despite their operating in one of the top growth areas in the world.
While I’m not focused on Chinese stocks at this moment due to better trading opportunities in the domestic stock … Read More
By George Leong, B.Comm. | March 24, 2014
If you think Chinese stocks are too speculative to consider and buy, then you need to read what I’m going to say over the next few paragraphs.
Yes, it’s true that China-based companies have subjected U.S. capital markets to erroneous results and reporting in the past and that it is likely continuing to some degree, but that does not mean you should bypass Chinese stocks. You just need to be … Read More
By Michael Lombardi, MBA | March 11, 2014
Understanding the economic slowdown in the Chinese economy is very important because not only does it impact American companies doing business there, but what happens in the Chinese economy—now the second-largest economy in the world—affects the global economy.
While media outlets tell us the Chinese economy will grow by about seven percent this year (30% below the 10% the economy has been growing annually over the past few years), the … Read More
By George Leong, B.Comm. | February 20, 2014
For the first time in more than three years, Chinese stocks are beginning to show some promise for growth investors looking for opportunities outside of the United States.
The benchmark Shanghai Composite Index has moved to just above its close of 2013; hence, it’s more or less in line with the S&P 500 and Dow Jones Industrial Average.
Many of you are aware of my continued bullishness for China, as … Read More
By George Leong, B.Comm. | February 13, 2014
We all know about some of the insane valuations with social media and Internet services stocks, such as Twitter, Inc. (NYSE/TWTR), Facebook, Inc. (NASDAQ/FB), and Yelp, Inc. (NYSE/YELP), as I have discussed in these pages before. (Read “Two More Internet Stocks to Watch.”)
These valuations make it extremely risky to buy, as a change in the market perception and valuation could lead to a sell-off in the stock, as was … Read More
By George Leong, B.Comm. | February 12, 2014
The Securities and Exchange Commission (SEC) is currently shutting down numerous Chinese shell companies trading on U.S. exchanges, such as the over-the-counter market and the highly speculative Pink Sheets stock exchange.
This is good and is something the SEC needs to continue to pursue and enforce, so domestic investors can regain some lost confidence towards Chinese stocks.
The American appetite for Chinese stocks has been picking up; albeit, it’s nowhere … Read More
By George Leong, B.Comm. | January 15, 2014
If you don’t believe China is the world’s largest auto market, then you probably have never been to Beijing or Shanghai, where the traffic gridlock makes Congress here seem pretty lax.
Despite the Chinese government’s ongoing efforts to regulate the number of vehicles on the country’s roads, especially in the bigger megacities, the Chinese auto market continues to be a major growth market for many foreign automakers, including General Motors … Read More