The China Syndrome-Part 2

Following on from my previous post where we looked at Taiwan as a good potential mid term investment I want to touch on China.China is still one of the fastest growing economies in the World and although growth is not as high as it has been there is no real sign yet of it slowing dramatically.I believe that we will see good growth in China at least till post the 2008 Olympics and possibly beyond.The sheer size of China makes it a formidable market and one where if you pick the right stocks could generate some excellent returns over the next few years.It can be volatile so if investing I would be looking to hold the shares for 2+years with a 25% stop loss.

Some of the shares I like to capitalise on China are below :

China Medical Technologies (CMED)
Hong Kong Shanghai Bank (HBC 4% Yield)
Templeton Dragon Fund (TDF 4.5% Yield)

I also like iShares FTSE/Xinhua China 25 Index Fund (NYSE: FXI) it is up 102% in the last 18 months and 65% since June.

However you look at it China is going to become an increasingly large player on the Global Economic Stage and we really need to have some exposure to these markets.The fund route is a good option as it allows some measure of diversification-but may not deliver the opportunity for some stellar gains with indiviudal stocks such as CMED.

All for now I will report back later today hopefully on the US markets.

Best Wishes


RT

Trade Confirmation

B half position at 14.80 in Taiwan Fund EWT-will wait to see what happens and whether I will buy more-if it moves up quickly will not likely and will just sit with what I have.If it moves down towards 14 in next couple fo weeks will buy second half.

Best Wishes


RTjavascript:void(0)
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Trade at Open-iShares MSCI Taiwan Fund EWT-NYSE

Hi just a quick note to confirm that I am going to open a position in the Taiwan Fund at the Mkt open, as this is a long term position I will probably scale in to it buying half my desired no of shares and then waiting to see if there is any pullback and I will buy the rest.So just to confirm I will be buying at the open the iShares MSCI Taiwan Fund EWT-NYSE at the open for my Pension fund.I will be back later on with the second part of the post from yesterday.


Best Wishes


RT

Go East Young Man-Made in Taiwan and the China Syndrome Part 1

The US Markets are closed today so I thought this might be an opportunity to look beyond the US shores to another favourite market of mine-the Far East.For many years the Asian Markets have lagged far behind the US and Europe.I think we may be seeing the tentative shoots of recovery in certain markets.Japan is still a wildcard but I believe that 2007 may prove to be a good year for Taiwan. In 2006 a number of emerging mkts including some in Asia have hit all time highs but Taiwan still lags and is over 43% below its high from Feb 1990.Taiwan is home to some of the largest Tech and Electronics companies in the World. Companies that produce I-Pods and the Mini Mac as well as supply major IT companies such as Dell and Hewlett Packard-the link therefore to PC and Semi-conductors is inextricable-when these markets boom so does the Taiwanese economy.If you believe that these sectors are likely to start to move in 2007-(think Vista and PC's) then Taiwan is a good place to invest.For me the best way to play this is via the iShares MSCI Taiwan Index Fund(EWT-NYSE).This fund is broadly based and diversified but heavily weighted to Technology Companies. Another boost for Taiwan is that it is one of the major trading partners of China. The Chinese economy is still one of the fastest growing economies in the world and as the mass Chinese become more affluent then they will increase their expenditure on goods such as PC's and Technology-this can only be good for the Taiwanese economy and for the iShares MSCI Taiwan Index Fund(EWT-NYSE).I will be opening a position in this fund at the mkt tomorrow.I will also post Part 2 of this communication looking in a bit more detail at opportunities to gain some exposure to China such as Hong Kong Shanghai Bank (HBC) , Templeton Dragon Fund (TDF-NYSE) and China Medical Technologies (CMED-NYSE).



Best wishes for the New Year and Good Trading

RT