Talk about a gold medal performance! In case you missed the closing ceremonies in Beijing, the Chinese ended the Olympic Games in a blaze of glory. For two weeks, not only did China impress its visitors with its hospitality and strength of cultural character, but it proved to a global audience that it truly is an economic and political power.
I'm confident that China's resolve will only grow from here, and we as investors should be prepared to take advantage of the opportunities China's economic might places in front of us. There are plenty of ways to cash in on this behemoth's rise to superpower status.
China's Internet Revolution
For starters, let's take a look at the progress China has made in the Internet and software services sector. Sohu.com (SOHU) is the leading Internet portal in China–and a member of my Global Growth Buy List! My subscribers have so far realized a 30% profit in this stock.
SOHU also operates an online gaming platform, a search engine, and a wireless services provider–each of which ranks in the top 50 websites in China!
As an official sponsor of the 2008 Beijing Olympic Games, SOHU also has the second-largest platform for online brand advertising in China–a business that generated more than half of its 2007 revenue! And thanks to its exclusive rights to provide premium coverage of the Games, the company saw a huge boost in advertising sales and lifted its brand name.
China's Education Boom
Now I want to switch gears and talk about China's education sector, which is growing even faster than the economy as a whole.
New Oriental Education (EDU) offers investors the chance to profit from an explosive up-and-coming private education market in China for educational and test preparation services. High school students, college students and young adults account for more than 36% of the country's population, and with demand for English language training simply off the charts, EDU is thriving! Similarly, China sends a huge number of its students abroad for college and postgraduate studies, and these students are in need of both test preparation and language courses, which bodes well for EDU's growth outlook.
The company is in great financial health, with cash accounting for 67% of its assets in February 2008. Although the private education market is very fragmented and New Oriental faces tough competition from overseas companies, test-prep programs for Chinese high school students will contribute to the EDU's growth over the next several years.
PortfolioGrader Pro, my FREE stock ranking tool, gives EDU an A-grade. This is definitely a stock to be on the look out for as China's growth spurt continues.
So there you have it. This is just a small sample of some of the tremendous Chinese growth stocks available to investors. The 2008 Olympic Games may be a thing of the past, but I guarantee this isn't the last we've heard of China. In fact, it's only the beginning. It's not too late for you to cash in on the Chinese economic boom.
For more stock recommendations like Sohu.com and New Oriental Education, try a risk-free trial to Global Growth today!
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