Investing in Chinese Companies

China's economy has been soaring for some time.  It is possible the growth potential is only at the starting point. During the years of its world seclusion. China as a country amassed trillions of dollars in its coffers. American companies that have relocated some of their operations to China has added even more capital to the China economy.  The Chinese are wise investors and do not seem to make a bad deal in any of their financial transactions.  China calls the shots in the deal making process.

This year in particular China is going through a massive infra structure and building phase within China to prepare for the 2008 Olympics.  This factor has increased China's tremendous building phase in manufacturing aluminum, building trades and the railroad industry. In the area of communication China has stepped up its manufacturing and distribution of products. China also has plans to build a small economy car called the Chery Automobile.  

For all the reasons mentioned above and the overall strength of the China economy this could be a good time to buy China stocks.  The average American can purchase China stock on the New York Stock Exchange and NASDAQ Exchange.  The other avenue available is the mutual fund or spider that is geared to Asian or China investments only.  These funds do exist and are doing exceptionally well. 

Specific China Stocks:

The need for raw materials and manufacturing of materials is a high priority for China. One particular shining star is Aluminum Corp China.  It trades on the New York Stock Exchange under the stock ticker ACH.   This is an $8.7 billion dollar market cap company. It has seen tremendous gains in the past two years.  The growth spurt almost seems endless due to China's demand for aluminum and other metals.  The stock is currently selling in the high $60 range.  The major institutional holders are John Hancock Trust-Natural Resources, Allianz, Goldman Sachs and other prized investor funds.  

In the technology areas Chinese companies have some interesting choices. The web company and software technology and mobile phone application company CDC Corp. is a low cost stock to watch.  The stock sells under the stock ticker CHINA.  It is currently a $6.40 stock that can easily make its mark at $11 and higher. The Olympic 2008 event in Beijing is expected to boost their technologies.  

A great information and search engine company is Baidu. It trades under the stock ticker BIDU.  For whatever reason the brains on Wall Street love this stock.  It sells in the $200 plus range, but it rivals the likes of Google.  It is a stock to watch. 

Mutual Funds:

The investor looking to invest in China and Asian Markets should definitely consider the mutual funds offered by various family of funds. Nearly all of the large fund companies have a fund that is designed for for exposure to the growth in China.  Alger China Growth, Thornburg Global Opportunities,  Evergreen Opportunities Fund, American Funds, Oppenheimer and Allianz all have great funds with good returns.  

If you are interested in China stocks discuss it with your advisor or ask one of the funds mentioned above to send you a prospectus.  

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History of the stock exchange

A stock exchange is simply a place where stock is traded. Obviously, in this day and age, the New York Stock Exchange is much, much more than that. Not only is stock traded, but bonds, securities, commodities and countless other things are traded, as well. The NYSE has become so well known throughout the world that it has evolved from a place to do business to a genuine tourist attraction. The history of the market, combined with the wealth and power that resides within its walls makes it a must-see for any tourist visiting New York City. But how did we go from a dirt road trading post on the outskirts of a small village to a marble and stone monolith like the New York Stock Exchange?

While the location of the very first stock exchange is somewhat controversial, it is believed that the original exchange was located in the Egyptian city of Cairo at or around the 11th century. It is thought that Jewish and Islamic merchants dealt in stock and commodities trading. This goes against most common beliefs that the Italians were the ones to actually invent the stock market.

The first appearance of stock brokers can be traced back to France in the 12th century. A person known as the courratier de change was saddened with the job of regulating and managing the debts and finances of communities that were based on agriculture for the local banking system. They were also known to trade the debts that they kept records of.

During the next century, French commodity traders started to become more organized and groups that would meet on a regular basis to trade began sprouting up all over Western Europe.

The first evidence of trading of government securities was seen by Venetians in the 1200’s. The government of Venice soon outlawed the practice of rumour spreading with the intent of lowering prices of government-issued securities.

Within the next few hundred years, the Dutch were the first to start stock companies that let their shareholders have a piece of profits, and losses. The Amsterdam Stock Exchange was the first exchange to offer the idea of continuous trade as early as the 17th century.

The road from dusty marketplace to organized stock exchange has been a rocky one, but the evolution is unmistakeable. With the current trend of moving away from floor traders and to computerized trading, no one knows what the stock exchange of the future will look like, but one thing is for certain, the market will continue to change over time, no matter what.

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