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Finding the Best Chinese Stocks
For most individual investors in the U.S., it’s hard to become intimately familiar with the Chinese corporate landscape. After all, American investors
have been conditioned to look at opportunities here at home first. But I think this is a mistake.The fact is that the U.S. market indices rarely lead the world in terms of the performance, so investors who forgo investing in stocks located outside
the U.S. are only putting governors on their own bottom line. Still, the question of how you find the best stocks — particularly in such a diverse
market as China — is a valid one.I think the key to unearthing great China investments is to make sure you are buying something with a strong earnings record combined with strong
buying pressure. This is true even of U.S. stocks; however, when it comes to stocks you aren’t likely as familiar with, a solid earnings record and
a lot of buyers makes all the difference.
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