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"We're seeing tremendous opportunities in China, which should move up regardless of U.S. market gyrations," says Richard Schmidt. In Stellar Stock Alert, he offers his current favorite China plays.
In addition, Jim Trippon, editor of The China Stock Alert, discusses the latest addition to his model portfolio, China's largest life insurance company -- and one with large exposure to Chinese equities.
And finally, fund expert Jim Lowell -- editor of Fidelity Investor -- says, "Investors should be buying Chinese stocks, Hong Kong real estate and Taiwanese technology." He offers some favorite funds for China region exposure.
We begin with Schmidt, who notes, "China Mobile (NYSE: CHL) is one of our newest holdings. We bought the Chinese telecom company last month. Recent price action has turned the 200-day average positive. In our view, we're early in this up move and expect greater growth in the near future. CHL is a strong buy.
"The earnings report released in August show a 40% increase year-over-year, and 133% increase sequentially. That's good news. We're just now beginning to see the tide shift here, so stick with it. HPJ is a strong buy.
"Netease.com (NASDAQ: NTES) is another one of our new holdings, purchased just one month ago. Between 2006 and 2009, the stock traded within a fairly wide trading range ($14-$26). That trading range provides significant support for future growth.
"And, earlier this year, the stock broke out of that trading range to the upside. It's now continuing a very long-term uptrend that goes back to 2002.
"In August, the stock ran up strong, then pulled back to the 50-day moving average. The support held and pushed the stock back up. That is a very bullish move. The future looks bright for NTES. It remains a strong buy.
"iShares FTSE/Xinhua China (NYSE: FXI) is currently flirting with the 50-day moving average. But so far, it's remained above the support line. We're still seeing some awesome potential in the Chinese markets, so this ETF will continue to move up in the coming months. FXI is a strong buy."
Jim Trippon adds, "China Life Insurance (NYSE: LFC) is once again on our 'buy' list'. First-half net profit rose 29% from a year earlier. That's an impressive gain, considering the continuing pressure on the Chinese economy from unemployment and falling exports.
"The company's net profit for the six months ended June 30 rose to just over two billion dollars from $1.57 billion a year earlier, according to Chinese accounting standards.
"China's rising stock markets more than compensated for a slide in group insurance policies. Its gains on financial assets, which reflect China Life's returns from the stock market, rose sixteen-fold to $1.741 billion.
"The company says it intends to continue to invest in Chinese equities despite losses that hurt the firm's capital base during the peak of the global financial crisis last year. We recommend purchase up to $65 a share."
For mutual fund investors, Jim Lowell says, "The fact that China is the only one of the 10 largest economies to have begun to grow is notable in and of itself. But it's even more more remarkable given that it has begun to grow without the aid of other global economy's in tow.
"Fidelity China Region (FHKCX) is being upgraded to a buy. Manager Wilson Wong invests at least 80% in companies from Hong Kong, Taiwan and China. The top three sectors are financials, information technology and consumer discretionary.
"Fidelity Southeast Asia (FSEAX), managed by Jess Tan, invests in companies from the Southeast Asia region as well as companies that are tied economically to the area. The top three sectors are financials, telecom services and industrials."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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