Blog > Featuring... > Need growth? Head to China
Share this article:
  • Print
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • NewsVine
  • StumbleUpon
  • Twitter

Need growth? Head to China

Today's Financial News - Posted October 27, 2009

Need growth? Head to ChinaValue investors are having a hard time finding cheap stocks these days. Fortunately, there is more than enough growth opportunities in China to fit the bill.

By Andrew Snyder, TodaysFinancialNews.com

Baltimore – (TFN): If you want to invest in growth, go to China. With an economy that is growing at 7% or better, it offers some of the best opportunities on the planet.

After all, here in the States, the only thing growing that rapidly is our government.

Many Chinese firms have been well rewarded for their recent growth initiatives. Today, China Technology Development Group (NASDAQ:CTDC) is on the receiving end of the positive action. Shares of the solar energy products manufacturer are up by more than 35% thanks to newfound growth potential.

The $75 million firm announced it will become the majority shareholder in China Technology Solar Power Holdings, a company developing a sizeable solar power plant in Delingha City.

By purchasing a piece of the 100MW plant CTDC greatly increases its product breadth. Now the company will design and build solar panels, plus operate the power plants that use them.

As China works towards its goal of acquiring 15% of its electricity through renewable sources, CTDC stands a strong chance of becoming a major player in the industry.

That is more than enough of a reason for investors to increase their bidding price.

Buying growth

If you have been closely following the markets over the past few months, you know China has managed to find a spot amongst the leading gainers almost daily. Often, two or three Chinese firms are mixed in the top ten.

This theme is only going to increase going forward. As American interest rates remain low, enticing investors to look elsewhere, and as the American economy increases its laggard stance, the “anywhere but America” mentality will become increasingly popular.

For investors looking to take advantage of this opportunity, think infrastructure and commodities.

China has a stack of its own underground resources, but is keen on buying everybody else’s before it depletes its domestic supplies. For growth, search out the Chinese companies expanding their operations into regional neighbors like India and Australia.

As proven by CTDC, energy is a strong play, especially solar. China is home to handfuls of solar product manufacturers that are growing their top line by leaps and bounds above American competitors.

After the market’s strong surge since March, value investors are having a tough time filling their portfolio. Fortunately, there are more than enough growth opportunities to make up the difference.


Next Article: Under Armour: The beehive is alive

Posted by Andrew Snyder · Filed Under Featuring..., International Investing 

Share this article:
  • Print
  • Digg
  • del.icio.us
  • Facebook
  • Google Bookmarks
  • NewsVine
  • StumbleUpon
  • Twitter

 Add to Technorati Favorites | Follow Us on Twitter!

Be the first to leave a reply.

Your comments are welcome