Lombardi: Expert Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986
Stock Market Commentary & Forecasts, Financial & Economic Analysis

Welcome to Profit Confidential • Wednesday, May 23, 2012

Yet Another Reason to Invest in China

Monday, August 11th, 2008
By George Leong, B.Comm. for Profit Confidential

China is now tops in the Internet world. The country’s Internet demand continues to grow at a staggering pace. According to a recent report released by the China Internet Network Information Center (CNNIC), the number of Internet users in China has surged to 253 million, making China the largest Internet market in the world and surpassing the United States. Given this, there continues to be excellent growth opportunities for investors and companies in China.

Pundits still view China as having more upside potential in the Internet space as the country’s current penetration rate of 16% of the population is lower versus the average of 19% worldwide, and the U.S. penetration rate at a whopping 71% (source: The Pew Internet and American Life Project). Given these comparisons and even discounting the fact that much of China is rural and poor, there are still excellent growth opportunities in China. According to BDA China Ltd., China’s Internet usage could grow at 18% annually and could reach a staggering 490 million by 2012.

The market for online shopping in China also continues to blossom, as shoppers flock to the Internet. Online sales were US$37.5 billion in the first half of 2008, up 60% year-over-year, according to the Data Center of China Internet. For 2008, online spending is projected to top $86.2 billion, up 50% year-over-year.

Another area for growth is the gaming sector in China, which is not unexpected given the high penetration rate of youth online in China. Keep an eye on Chinese online gaming stocks.

We favor China for growth investors looking for opportunities in the Internet space. We continue to like the longer-term situation in China and believe you should have some capital invested in China whether it is with large-cap, blue-chip Chinese companies or with small, emerging, higher-risk stocks. In spite of the risk in China- related stocks, we believe it would be an error to bypass the country. Investing outside of the U.S. helps to diversify returns and add some growth potential. The key to invest in China is to be diversified. Invest only a portion of your capital in China. Besides small-cap stocks, you can also buy large-cap Chinese stocks or major U.S. companies with an expanding presence in China.

Next Post:
Previous Post:

Tags: , ,










Sign Up for PROFIT CONFIDENTIAL and
receive a FREE copy of our exclusive report:
"A GOLDEN OPPORTUNITY FOR STOCK MARKET INVESTORS"

Enter e-mail:

We respect your privacy and
will never share your e-mail address.



Profit Confidential AuthorGeorge is a Senior Editor at Lombardi Financial, and has been involved in analyzing the stock markets for two decades where he employs both fundamental and technical analysis. His overall market timing and trading knowledge is extensive in the areas of small-cap research and option trading. George is the editor of several of Lombardi’s popular financial newsletters, including The China Letter, Special Situations, and Obscene Profits, among others. His trading advice on stocks and options is also found on his daily trading site, Daily Profits. He has written technical and fundamental columns for numerous stock market news web sites, and he is the author of Quick Wealth Options Strategy and Mastering 7 Proven Options Strategies. Prior to starting with Lombardi Financial, George was employed as a financial analyst with Globe Information Services.

Daily Profits


Enter your e-mail address to subscribe to
Profit Confidential — IT'S FREE!
Enter e-mail:
ALSO RECEIVE A FREE COPY of our exclusive report:
"A Golden Opportunity for Stock Market Investors"

McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams

 

Corporate
About Us
Privacy
Disclaimer
Contact Us
White List
Sitemap

Profit Confidential
Predictions
Gurus
Archives
FREE Sign-Up
RSS
Twitter
Facebook

Editors
Michael Lombardi
George Leong
Mitchell Clark
Tony Jasansky
Robert Appel
Wendy Potter
Sasha Cekerevac

Topics
Gold Stocks
Stock Market
Bear Market
Bull Market
US Dollar
Euro
Interest Rates

Expertise
U.S.Deficit
Real Estate Market
Debt Crisis
Chinese Economy
Economic Analysis

Guidance
Investment Guidance
Retirement Plan
Chinese Stocks
The Best Stocks
Gold Stock Picking
Real Estate Investment

Resources
Gold
Precious Metals
Real Estate News
Gold Investments
Investing in Real Estate


Profit Confidential Disclaimer