New Asia Developments = Opportunities for Investors

Robert Hsu, June 30, 2009

In this Issue:

Rising Fuel Prices, Burgeoning Profits
The Arms Dealer for China's Drilling Companies
The Chinese Ripple Effect
A Much-Needed Boost for Taiwan's Economy
One of the Hottest IPOs of 2009

The Arms Dealer for China's Drilling Companies

Since oil prices have surged around 100% since March, the Chinese government needed to lift prices in order to protect the profits of its state-owned oil companies. Rising crude oil prices globally but low energy costs in China is a bad combination for Chinese oil companies.

In fact, the country's largest refiner noted back in May that the company would lose money if crude oil prices traded above $60 per barrel and the Chinese government didn't lift fuel prices. So the Chinese government has raised oil prices three times this year to prevent losses at its state-owned enterprises.

Aside from refiners, though, China's oil drillers are also big beneficiaries of the Chinese government's move to raise energy prices. Higher fuel prices increases the incentive for companies to start more drilling projects and exploration activities.

This is great news for one of the latest additions to the China Strategy portfolio. This Chinese oil services equipment company is not only a pure play on China's demand for energy; it's basically the arms dealer to China's drilling companies. It manufactures a wide variety of products according to the American Petroleum Institute's standards, providing seamless casing, tubing, drill pipe and connectors for companies' use in oil and gas exploration, drilling and extraction.

Since the beginning of June, when the Chinese government raised oil prices for the first time this month, shares of this energy company have simply skyrocketed. In June, the stock has surged 37%! And my China Strategy subscribers are sitting on a 12% gain since I recommended it two and half weeks ago.

But it's not too late to get on board. Over the next six months, I'm expecting the company's shares to more than double! Don't miss the next leg higher -- join China Strategy today!

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