China: Largest Untapped Market in the World

August 7, 2008

China has one of the largest economies in the world, second only to the U.S. China has a population of 1.3 billion people, and soon that will mean 1.3 billion who will demand many of the same things consumers in the West enjoy–everything from flat-screen TVs and sports cars to Starbucks and cell phones. Since free market reforms were introduced 30 years ago, the Chinese economy has grown by an average 10% a year. That's an astounding growth rate. Yet, many North American investors are still a bit skittish about investing in China. To be frank, some caution is definitely prudent.

In my Global Growth investing service, we've been able to pinpoint some of the best, and safest, China stock opportunities. The game I like to play is to look for a Chinese counterpart for a great American stock. For example, we all admire the tremendous gains of Warren Buffett's Berkshire Hathaway (BRKA). Is there a similar stock in China? There could be, my Global Growth subscribers made 187% in China Life Insurance (LFC) in just 15 months. How about a stock similar to Southwest Airlines (LUV)? At Global Growth, we made a quick 41% in China Southern Airlines (ZNH) in less than five months.

If you're not familiar with many stocks in China, here's a list of 20 major names along with my current PortfolioGrader Pro ratings.

Company	Ticker	Grade
AgFeed	FEED	A
AsiaInfo	ASIA	A
Baidu.com	BIDU	A
China Medical	CMED	A
China Unicom	CHU	A
Jinpan	JST	A
Sohu.com	SOHU	A
China Life Insurance	LFC	B
China Mobile	CHL	B
China Netcom	CN	B
China Petroleum & Chemical	SNP	B
China Telecom	CHA	B
CNOOC	CEO	B
New Oriental Education	EDU	B
PetroChina	PTR	B
Simcere Pharmaceutical	SCR	B
Yanzhou Coal	YZC	B
Zhongpin	HOGS	B
Huaneng Power	HNP	C
Trina Solar	TSL	C

With the Beijing Olympics kicking off tomorrow, this is an excellent time to focus your portfolio on China and several other emerging markets. Today, I want to extend to you an opportunity to sign up to my Global Growth service. Over the last ten years, our system has beaten the U.S.-based S&P 500 by more than 10-to-1.

Our secret is finding explosive growth stocks on international exchanges that are mostly unknown to American investors. At least, they're unknown for the moment. Today we're currently investing in stocks based in countries like Brazil, Ireland, Russia and South Africa. However, our #1 country right now is China. You can sign up now for one year of Global Growth for $5,000. Or you can try a three-month trial for $1,395.

That's all for this week. I'll have the next issue of What's Working on Wall Street Now next Thursday, August 14.

Sincerely,

Louis Navellier

P.S. Don't forget General Steel (GSI), the Chinese steel stock that I highlighted two months ago. Since then, the shares are up nearly 40%! Enjoy watching the Olympics and sign up to Global Growth today.