Is there profit to be made in Chinese stocks? It’s a question that many investors are asking. Maybe you are too. The Shanghai Composite Index has been battered lately, dropping 20% and signaling that the Middle Kingdom is officially in a bear market. A bear market in an economy of that size, coupled with the ongoing trade war between the U.S. and China, is a recipe for investors to be concerned, especially retirees who have a diversified portfolio that includes non-U.S. stocks.
So is there profit to be made in Chinese stocks?
Yes, if you know where to look. One of the benefits of investing in Chinese companies has been the restrictions they place on foreign companies doing business in their country. This has allowed Chinese startups to quickly profit from the innovation of other countries. Use of these restrictions is a disputed practice, but for investors, it creates a great opportunity.
While they have started to loosen those restrictions in certain sectors, they remain in place for many of the key sectors that are fueling their growth, most notably media, the internet, and agriculture. Many of the companies we will look at are mirrors of a U.S. company in the same sector.
In the following slides, we’ll review seven Chinese stocks that continue to stand out despite the uncertainty regarding trade. While the stocks do not appear to be cheap from a valuation standpoint, the fact that China is such a big market is rewriting the rules, and these companies still appear to be in growth mode.
Click the "Continue to Slide #1" button to view the first company.
