China stocks and ETF

Sorry that I posted in the wrong place.

China market has been doing very well .

FXI BIDU CTRP NTES SNDA have been so strong.

SOHU is behind and the current drop creates good opportunity to buy low.

We should follow china stocks for investment. They seem to know how to turn their economy more than us here ugly politics..

China has tons of money. We own them tons too.

 

Did you see solar china stocks today. On fire.
Really believe that china stocks will go much higher due to the quick recovery over there.

Some stocks caught my interest:

FMCN: Broke out, good fundamental. NO debts. Used to be over $62 and only $7 now. This is Motley's rule breaker stock

CTRP: I still like this one. It's Motley's hidden gem stock.

CPSL: china steel. Wow, look at the volume today.

 

You apparently don't know much about the Chinese economy do you? China is in serious trouble right now. Their government is begging their citizens to spend because their growth has stopped. They were a bubble. Their bubble is done.

The emerging markets are about to be hit hard and China will lead the emerging markets down when they report their dismal growth very soon.

The emerging markets haven't done a single thing to prevent serious recession. They are late to the game and will now pay the price for not reacting sooner as the US had. Personally, I would not be buying emerging markets or China at these levels.

 

Saw Marc Mobius on bloomberg around 5:00 am today and he said a new bull market has started with emerging markets. He is long some Chinese stocks and said he really likes Brazil for commodity play. I think he made the call a couple of days earlier also.

‘Bull Market’ Has Begun, Templeton’s Mark Mobius Says (Update3)
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By Chua Kong Ho and Paul Gordon

March 23 (Bloomberg) -- The next “bull-market” rally has begun and there are bargains in every emerging market following a record slump in stocks, Templeton Asset Management Ltd.’s Mark Mobius said.

The MSCI Emerging Markets Index has jumped 26 percent since reaching a four-year low on Oct. 27, outperforming the 4.2 percent drop in the MSCI World Index and 9.5 percent decline in the Standard & Poor’s 500 Index. Emerging markets made up the 10 best-performing benchmark gauges this year, led by the 28 percent gain for China’s Shanghai Composite Index.

“You have to be careful not to miss the opportunity,” said Mobius, who helps oversee about $20 billion of emerging- market assets as executive chairman at San Mateo, California- based Templeton. “With all the negative news, there is a tendency to hold back.”

Emerging markets are in “better shape” than developed economies, Mobius, 72, said in a Bloomberg Television interview from Hong Kong. The fund is looking for companies that are “cash-rich,” have low debt and higher dividend yields, or those that can invest for future growth yet have cash left to pay shareholders, he said.

The MSCI Emerging Markets Index today climbed the most in nearly two weeks, erasing losses for 2009, on speculation the Obama administration’s plan to rid banks of toxic assets will help spur global economic growth.

Stocks Climb

The gauge added 3.3 percent to 571.19 at 10:07 a.m. in London. The benchmark for equities in 23 developing nations tumbled 54 percent in 2008 and lost as much as 16 percent this year on concern the first global recession since World War II would erode earnings.

Templeton’s picks include Hong Kong’s Denway Motors Ltd., PTT Plc in Thailand, Indonesia’s Bank Central Asia, ICICI Bank Ltd. in India, Taiwan Semiconductor Manufacturing Co. and Dairy Farm International Holdings Ltd. in Singapore, Mobius said.

A company’s participation in derivatives trading is a warning against some stock selections, Mobius said.

“No longer are we satisfied with the explanation that ‘oh, it’s just plain vanilla,’” given the huge losses incurred at financial companies, he said.

Citigroup Inc.’s analysts Markus Rosgen and Elaine Chu are among strategists who describe recent Asian stock gains as a temporary “bear-market rally.”

‘Lot of Bouncing’

“You are going to see a lot of bouncing off the bottom because there’s a tremendous amount of uncertainty in the market,” Mobius said, “But I have a feeling we’re at the bottom and now we’re building a base for the next bull market.”

Mobius correctly predicted in December that emerging markets will rebound before developed nations. In 1999, he was voted among the “Top Ten Money Managers of the 20th Century” in a survey by the Carson Group, and in 2006 he was included in the “Top 100 Most Powerful and Influential People” by Asiamoney magazine.

Investors who poured $502 million into Asian equity funds over the past two weeks may lose out once the “bear-market rally” falters, Citigroup said today in a note, citing a 30 percent drop after an initial rebound in the 1997 slump. Citigroup’s Rosgen and Chu wrote in a note today they remained “skeptical” the rally is sustainable because valuations have yet to plumb the lows seen in past recessions.

Cycle Skeptics

Fidelity Investments, the world’s biggest mutual fund company, is among the skeptics on predictions about the timing of the market cycle.

“No one can call the bottom in the stock market. No one managed to do it. We can’t do it. We don’t have a crystal ball,” Tal Eloya, a portfolio manager at Fidelity Investments, said in a briefing in Seoul today. “We have to think long term and invest over a long-term horizon.”

Mobius’s view that stocks will rally is shared by investor Antoine van Agtmael, who is credited with coining the term “emerging markets.”

“Relative to potential sustainable growth and quality, emerging markets today are cheaper than I have seen them at any time since I started to invest” 30 years ago, van Agtmael, who oversees about $8.6 billion as chairman and chief investment officer at Emerging Markets Management LLC, said in a phone interview March 19. “Things have gone too far down.”

Previous Recessions

Asian stock market valuations outside of Japan fell to 0.9 times book value during the 1975 and 1982 recessions, according to Citigroup. The MSCI Asia excluding Japan Index is now valued at 1.3 times book value.

Brazilian oil company Petroleo Brasileiro SA, Cia. Vale do Rio Doce, the world’s biggest iron-ore producer, and Chinese oil producer PetroChina Co. are among the top holdings of Mobius’s Templeton Emerging Markets Trust.

He continues to favor China Mobile Ltd., the world’s biggest wireless carrier, as it is the “dominant player in the biggest telecommunications market in the world.”

To contact the reporter on this story: Paul Gordon in Hong Kong at Pgordon6@bloomberg.net; Chua Kong Ho in Shanghai at kchua6@bloomberg.net

Last Updated: March 23, 2009 07:05 EDT

 

What a bunch of bullshit in that article. Emerging markets are "better off" than developed markets?...hahahaha...that's a freakn' joke. As Eastern Europe economies blow up due to debt, the Chinese economy collapses because of either flat GDP or negative GDP coming up soon, and then the realization that inflation isn't coming as soon as everybody thought is going to deflate the commodity based economies like Brazil.

Why are the emerging markets in danger? Because they haven't done anything to mediate the recession because...

...number 1...all the fools in the world have fooled them into believing they are decoupled...

....number 2....they are waiting for the US to "save them".

...meanwhile, as the global recession spreads, the money in the emerging market is going to realize it isn't quite as safe as all the fools had them to believe. This will cause the money to flow back into the US economy as they realize that the dollar is still safer than any other currency or economy in the world right now due to the aggressive action being taken by the US government.

Let's see how this plays out over the next 6 months. We'll revisit this thread at that time to see who is right.

 

the US got the world into this mess. the US is going to get the world out of this mess.

what a joke!

 

Yes....the US forced all those poor Chinese to buy US dollars so that they could prop up their own economy artificially.

Yes...the US forced all those Eastern European countries to take on massive debt and to leverage themselves into insolvency...

...blah...blah...blah....wahhhhh....it's all the US's fault. All those crybaby leftists around the world that wanted their free lunch at the expense of the US.

Yeah...the US got us into this mess....what a joke.

 

My relatives live in China and have business there. One of the co-founders of SOHU is my cousin's friend (best man in his wedding).

LTON's co- founder is also another friend. These men have homes here. He is caucasian.

My sister is in China now visiting. I do get good information from them.

 

I've thought about FXI for a while. More for a long term hold and the dividend. If it dips back down to around $25 I'll buy and hold. Although I could see it bouncing back and forth between $20 and $30 for a while (purely technical observation). Definitely some good option plays if you know what you're doing.

 

wow this is completely false, how can someone miss something so obvious? U gotta stop watching all those doom and gloom youtube video.

the FXI will double by end of year, this is for sure.

China is the leading economy and already up 20 percent this year. Their markets (s) are still there for the taking.