China stocks have been one of the best places to profit for traders and longer term investors alike over the past several years and that continues today. Granted, the risk increases with each passing day as the market continues to push higher off the March lows, but the longer term opportunities are here to stay. The longer term investor may just want to practice a little patience before diving in after such a torrid run 🙂
I like to focus on niches of the China market and certainly my focus in the coming years will be on companies in the green energy space, which would include everything from solar, to wind, to electric cars to water conservation and treatment. China is leading the way in alternative energy technology and will continue to pour billions into it to ensure they remain on top. Back in June, I focused on the China water industry with a look at Duoyuan Global Water (DGW) ahead of its IPO. It’s just one of a few China water plays that have been on fire in recent months, with gains of 100 – 300%. For news, analysis and tracking of all the China alternative energy play, you might like to have a look at a new site I launched last year called Green Stocks Central.
Today, I shift gears a bit and focus on the China auto industry which has seen tremendous growth over the past year.