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China: On the Road to Recovery

I recently wrapped up a 10-day tour of China, visiting Beijing, Shanghai, Shenzhen, Hong Kong and Macau and observing the current state of the Chinese economy. And let me just say, China is on the road to recovery.

In general, my observations indicate that China's economy is already in the recovery phase. The real estate sector is improving, as the volume of home sales doubled in March from the previous month. This bodes well continued strength in China's recovery in the upcoming months, as the property sector is one of the most important segments in the Chinese economy.

And real estate isn't the only area that's helping to support the Chinese economy. State-owned enterprises (SOEs) are benefiting from the Chinese government's stimulus plan and banks' increase in lending. Their strength is providing employment opportunities and is keeping money flowing into the Chinese economy. As a result, many of these SOEs have seen their share prices increase dramatically.

So outside of exports, the Chinese economy continues to exhibit robust growth with government-controlled and domestic consumption sectors showing strength and supporting the economy. And that's why I continue to believe the Chinese economy will fully recover in the second half of this year and continue to provide us with incredible opportunities to profit from its strength.

Here are three of the best China stocks to buy now.

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