The Best China Stocks 2

Best China Stocks – Growth Stocks

This blog article will continue our investor series on the best China stocks. It is the second of a 3 part series that will take a more detailed look at investing in China with a variety of stocks to choose from. Our focus as usual will be on only the very best China stocks. This is actually a very good opportunity to pick up some China stocks at some good valuations.

China is the key growth engine now for the global marketplace. This makes it a good country to look for good China stocks and the very best China stocks. Furthermore, China will end up being the largest consumption country, even outdoing the United States, in another five years. It is a fact their GDP growth continues to be impressive and has been for quite some time. This growth has fueled many of the best China stocks to hit new highs and to gain over one hundred percent. It was just in the last few years, due to the deep recession, that China has started to moderate its growth down from 9% or higher.

The Best China Stocks – The Huge Import Increase

In addition to being a huge exporter of goods, China is also becoming a huge importer of goods. The importation of goods and products is climbing every year and its increase will drive up the price of the best China stocks we recommend in this article. Keep in mind that China has a population of 1.5 billion compared to the US’s at only about 330 million. So China has almost 4.5 times the number of potential consumers then the United States.

Now, granted, China has traditionally been comprised of a mostly indigent farming population but that is changing at an alarmingly fast rate. Their middle class has been growing by leaps and bounds. And middle class consumers are naturally going to be far bigger consumers of goods which will spur the best China stocks to potentially very large growth in the future.

The best China stocks, that we listed in our first blog, and the best China stocks listed in this blog will run the gamut of industries and sectors. There is plenty of growth to be found in many different investment areas in the Chinese economy.

For example, China’s vehicle imports are up over 250% in the last few years and they have become the largest auto importer in the world. Several research companies have reported a middle class Chinese income increase of almost 100% in the previous 3 years. And again, this is in a slow worldwide economy. It is easy to project explosive growth for the best China stocks and companies when a recovery really kicks in.

There are forecasts of China’s annual consumption increasing up to 6-fold in the next 5 years. This demographic change of mostly poor farmers to a very fast and growing middle class is increasing the consumption of all goods. Obviously, the best China stocks catering to this consumption in many different areas will benefit. This is true even for luxury goods. China is already the world’s second largest consumer of luxury goods, just behind the US, and they will certainly surpass the US in the next 5 years or so.

And, with a middle class status and a higher earnings rate comes the availability of discretionary income. This income is being used for general investing, investing services, international and domestic travel, larger living spaces, more houses, computers and internet services, mobile phones, life insurance, appliances, leisure and entertainment, electronics, health care services, clothes, and any other use one can think of with extra income. The best China stocks that are exposed to all of these industries and sectors could see gains of 200% or more in the next few years. This is especially true after many of the best China stocks declined sharply in 2011.

This concludes this second blog detailing more growth drivers for why the best China stocks will begood investments for the patient investor. The best China stocks detailed in the list below are more aggressive than the first list in this series. Use proper entries and timing and the profit and results from these best Chinas stocks could be amazing.

Best China Stocks – Aggressive Growth Stocks:

Research each company by yourself, scale in gradually, and don’t forget that even the best China stocks to buy will have volatility. These twelve best China stocks  should be very profitable and rewarding with the right price entries on market and stock pullbacks.

The final installment in this investor series on China will have some more speculative risk China stocks.