China is a wonderful story. It has astonishing potential, a highly-educated and motivated workforce, a legal system that is rapidly evolving into something that is pretty functional in terms of protecting property rights and generally encouraging investment and entrepreneurialism, and a flattish tax that is levied at about seven percent.
My preferred way to benefit from the flow of capital into China is to buy real estate, as regular readers will know. However other assets are likely to benefit from the continued economic boom in the country. Buying shares on the Shanghai stock exchange is difficult if you are not a PRC national. Buying them in HK is reasonably straightforward, although requires one to open an appropriate account in HK.
The interesting thing is that actually some of the largest and best-run Chinese companies are listed in the USA. This page gives you a great list to get started with. You can even see the price-earnings ration (P/E) and Price Earnings Growth ratio (the price/earnings ratio divided by its year-over-year earnings growth rate. In general, the lower the PEG, the better the value.)
The market in these shares is wonderfully liquid. Execution is almost instantaneous. 50% margining is automatic with Options Xpress.
You can even access a Google spreadsheet with PE and PEG ratios conveniently sortable, here, provided by Wall Street Networks
