Asia Insider Archive

It's been an incredible third-quarter earnings season across the board! The majority for companies -- American and Chinese -- have reported better-than-expected results, which has helped support the markets in recent weeks. But what's even better is that Chinese stocks continue to outperform. And I expect this trend to continue as we head into yearend. In fact, I expect Chinese shares to tack on at least another 10% to 20% upside by yearend. And that means right now is a great time to align your portfolio to take advantage of the next leg higher. So in today's Asia Insider, I tell you why I think the market's headed higher and provide you with the best ways to start profiting today.

Wow! It's hard to believe that our six-week series on sectors in China and all of Asia has come to an end. Over the past six weeks, we've discussed the opportunities and lack of opportunities in sectors such as automobile, tourism, education, Internet, healthcare and commodities. There are some extremely profitable investments in a number of these industries today, and I want to make sure your portfolio is directly aligned to profit. So, in today's Asia Insider, let's take a closer look at how China's economic strength will continue to support Chinese shares and push them higher through yearend. And we'll also take a look at how China's economic strength is finally spilling over to its neighbors, creating incredible trading opportunities.

We're winding down our six-week discussion on the hottest sectors in Asia, so today I'll talk about an area that China has been making headlines over -- commodities. China has been snapping up natural resources around the world, and much of the country's massive stimulus package went towards infrastructure projects that boosted demand for raw materials. So we'll take a look at how China is driving the recovery in commodity prices. More specifically, in this week's Asia Insider let's take a look at just a few of our opportunities in oil, gold and iron ore and how they're benefiting from the economic recovery in China.

When talking about the hottest sectors of 2009, no discussion would be complete without healthcare. It's has probably been one of the hottest topics of 2009, given countries around the world debating healthcare reform plans. Despite the influx of headlines about healthcare, though, there are some sectors of the market and countries that haven't garnered much attention. So in this week's Asia Insider, let's take a look at how China's prescription and over-the-counter (OTC) drug markets are faring relation to the country's healthcare reform plan, and why Taiwan's been so successful with its healthcare system.

Continuing our six-week discussion on industries and sectors in Asia, this week we turn to the Internet industry. This sector is undoubtedly one of the fastest growing sectors in China today. In the past 10 years, China's Internet user population has grown by more than 1,400%. And with 338 million users -- number-one in the world -- and only a 25% penetration rate, there's still incredible room for even more growth. But China isn't the only Asian nation that has great potential for growth in the Internet industry. In fact, many Asian countries have actually experienced fairly significant growth in the past 10 years, as well, including India, Japan, Malaysia, Singapore, South Korea and Taiwan -- just to name a few! So, let's take a look at China's Internet industry, the growth in a number of Asian countries' Internet population, and if there are potential investment opportunities in this sector today.

Over the past couple of weeks, we've looked at China's transportation industry -- specifically the automobile sector and the travel and tourism market. This week, we're going to switch gears and focus on an industry that's growing faster than China's economy -- education. Along with China, countries across Asia have recognized the importance of well-educated population, and as a result, governments have taken great strides to boost education within their borders. This has not only boded well for these countries respective economies, it has also nicely impacted education companies' business.

Throughout Mainland China, Chinese are enjoying an eight-day National Day holiday. This year is a particularly special time for the Chinese as it marks the 60th Anniversary of the founding of the People's Republic of China. And many Chinese are celebrating by visiting some of China's most popular tourist destinations. Now, while China's National Day holiday is providing a nice boost in travel and tourism throughout China, this trend has actually been happening all year. In fact, the China National Tourism Administration is expecting China's domestic tourists to clock in at more than 1.9 billion in 2009. And the Expedia of China is benefiting greatly from this trend. So in today's Asia Insider, let's take a look at China's tourism industry and the best way to profit as well as discuss a few travel and tourism industries in Asia.

Based on the feedback we received from last week's Asia Insider Survey, we discovered that many readers are looking for more and more information on the hottest sectors in China and Asia today, whether it's agriculture, green technology, automobiles, energy, health care, real estate, solar, or education. So this week marks the beginning of a brand-new six-week series on sectors and industries in Asia -– with a specific focus, of course, on China. Today, we'll be covering the automobile industry in Asia. China's auto industry is red-hot right now –- it's overtaken the U.S. as the number-one auto market in the world. Yet, at the same time other Asian nation's auto sectors are struggling.

One of the number-one questions that people ask me is: "Are there any opportunities in China's green technology sector?" The simple answer, yes! Of course, most people are looking at the high profile industries like wind power or solar. But I'm here to tell you that the most profitable opportunities lie in industries dealing with China's air and water pollution problems as well as agriculture. So in today's Asia Insider, I discuss why China is facing severe water shortages, air pollution problems and a lack of arable land. In addition, I also explain how the Chinese government has stepped up to deal with these problems, and what companies stand directly in line to profit from Chinese policymakers' initiatives.

Today marks the one-year anniversary of an event that few investors will celebrate -- the collapse of Lehman Brothers. This day marked a turning point in the global financial and economic crisis, as financial institutions around the world filed for bankruptcy in the weeks and months that followed. No economy was left unscathed. But in the midst of the worst financial crisis since the Great Depression, there was one a bright spot -- China. The immediate action that the Chinese government took following Lehman Brothers collapse allowed the country's economy and stock markets to bounce back first this year. And now, this economic strength is also spilling over to other Asian economies, as many are posting better-than-expected GDP figures and watching their respective stock markets move higher.

The Chinese markets are firming back up. After dropping 23% in August, China's A-Share market in Shanghai has now rallied 10% in the first six trading days of September. And this has pushed Chinese shares even higher this week. Given this recent market action, I'm sure that many investors are wondering what the next course of action should be. Well, remain proactive! Now is a great time to start preparing for the yearend rallies that I'm expecting. And in today's Asia Insider, I lay out my current market outlook and why you should be preparing now as well as provide three Chinese companies that are great buys right now.

There are incredible things happening in the world today. As economies around the globe recover from the worst financial crisis since the Great Depression, new investment opportunities are popping up. In fact, right now there's an emerging trend in China's pharmaceutical R&D outsourcing industry. Developing new medical treatments can be an expensive task for pharmaceutical companies, so many are taking a page out of IT companies playbook and turning to outsourcing. And China's the number-one choice with its first-class scientists able to be hired at much cheaper costs. In addition, a number of Asian economies are posting better-than-expected economic numbers or have recently seen significant changes in government. This is creating some tantalizing trading opportunities -- on the long and short side.

One of the hottest topics in the investment world recently has been whether China's stock market is forming a speculative bubble. Considering the 80% run up in China's Shanghai stock market in the first seven months of the year, I'm not surprised that this concern has popped up. But the fact of the matter is that China's government is continuing to take action to prevent a speculative bubble from forming. Given this, I think downside is limited and there's plenty of upside potential for the rest of the year. And that means there are profitable investment opportunities for China investors. I'm particularly excited about what I'm seeing in China's energy and healthcare industries right now. Let's take a closer look!

Earnings season is quickly drawing to a close, and as a result, we'll be wrapping up our discussion on second-quarter earnings this week. If you've been reading Asia Insider over the past couple weeks, then you know it's been an incredible reporting season. Of the companies that have reported so far, more than 70% have beaten estimates. What's even better is that most Chinese companies reported blowout earnings, sending their shares substantially higher. So if you've missed out on any of these profitable opportunities, I recap these earnings reports and what their shares will continue to push higher in the weeks and months ahead. There's still time to get on board -- don't miss out!

Business is truly booming in China today! And in recent weeks, we've seen just how well Chinese companies are faring the current global economic downturn, as many continue to report blowout earnings. In fact, just this week, a number of my China Strategy and Asia Edge recommendations reported better-than-expected earnings and tacked on more gains. What's even better is that this is just the beginning. Many of our recommended companies also provided positive forward-looking guidance -- meaning that there's still time to profit in these great picks. So in today's Asia Insider, we'll discuss these incredible earnings reports, and why there's still time to take advantage of these opportunities -- despite the triple-digit gains some have already experienced.

There's no denying that it's been an incredible earnings season with the majority of companies posting better-than-expected results. But what's even more exciting is the role that China is playing, as many companies -- American and Chinese, alike -- are benefiting from the strength of China's economy and robust Chinese demand. My Asia Edge and China Strategy recommendations have been particularly successful in recent months, and many have posted better-than-expected results of the second quarter. So in today's Asia Insider, I discuss a number of these positive reports and the best ways to profit going forward.

We're in the middle of earnings season and so far, the majority of companies have posted better-than-expected results, driving global stock markets higher. In the remaining five weeks, I expect the rally leaders to continue to be Chinese stocks with solid earnings growth. My China Strategy and Asia Edge subscribers have already taken advantage of the strength in Chinese companies. For example, in the past couple of weeks, two of my China Strategy recommendations reported positive results, sending their shares 7% to 10% higher. But it's not too late -- there are a number of companies still on tap to report, and I'm expecting strong results to push shares higher. Let's take a look at what you should be investing in now.

The Chinese economy is definitely recovering, as the country reported an eye-popping 7.9% economic growth figure for the second quarter. We're now on track to exceed my 7% GDP growth projection for 2009. What's been driving this incredible growth this year? Well, if you've been reading Asia Insider over the past couple months, then you know the Chinese government's stimulus package is playing a key role in stimulating economic growth. Funds from the stimulus plan and record bank lending are flooding the Chinese economy. And this influx of liquidity is spreading throughout China, fueling a real estate boom and helping Chinese grow richer. So in this week's Asia Insider, I share my recent observations from China on the country's booming real estate sector and robust consumer spending. There are incredible ways to profit -- don't miss out!

Earnings season is in full swing. Considering the dismal economic picture in the U.S., most investors and analysts have set the bar low for U.S. companies, setting us up nicely for a market rally in the upcoming weeks. Despite this possibility, though, I remain convinced that Chinese companies and companies benefiting from China's economic strength offer the best opportunities right now. In fact, Chinese companies have the potential to show year-over-year growth of more than 20%. As a result, many of these companies' shares will pop nicely following their respective earnings announcements. A number of my China Strategy and Asia Edge recommendations will be reporting over the next couple weeks, and I'm expecting solid results. Don't miss out!

Greetings from the Hainan Province in Southern China! I'm currently in the midst of my three-week travels throughout the Greater China region, and I've already made some incredible observations so far. Most notably, I've observed two trends that are creating incredible opportunities for investors. First, China's real estate market remains red hot, as demand is high and people are lining up to buy homes. And secondly, China's robust economic growth is helping the country's stock markets to decouple from the rest of world. This is great news for investors in China!

Today was a big news day for Asia, as the Chinese government raised fuel prices for the third time this year and Taiwan's Ministry of Economic Affairs announced the 100 industries and projects that it would allow Chinese investment. Overall, both announcements are good news for investors in Asia. The lift in fuel prices bodes well for Chinese energy companies, particularly state-owned enterprises and drillers. But it's also very good news for a little-known oil services equipment manufacturer that provides supplies to these companies. And Taiwan permitting Chinese investment in 100 industries is great for Taiwan's economy, as it will help the nation benefit from China's economic strength.

On Monday, the World Bank announced its revised economic growth projections -- its expecting a nearly 3% contraction in 2009. As you know, the news sent global stocks tumbling and oil prices plummeting. But we must not lose focus, as the Chinese economy is still posting robust economic growth this year. That's why I continue to focus our investments on companies profiting from the economic turnaround in China. Betting on the recovering Chinese economy is probably one of the most successful investment strategies for 2009, as the Shanghai stock exchange is up nearly 60% year to date. So in today's Asia Insider, I point out two long-term ways to profit from China's growing demand for oil, and three short-term trades profiting from China's economic recovery.

School's are letting out for the summer, and family's are planning or packing up for much-needed vacations. And they're not alone -- I'm heading to China in a week for a little relaxation as well as to conduct more research. China's booming tourism industry is at the top of my list of sectors that I'll be keeping an eye on. In addition to traveling to China, I'll also be visiting Taiwan. I'm anxious to see just how much the island's economy has improved as a result of a strengthening relationship with the Mainland. There are a number of companies benefiting from the influx of funds from China, and Taiwan's leading semiconductor company is definitely in line to profit.

China truly has the most dynamic internet market in the world. And 2008 just proved it. The country surpassed the U.S. as the largest internet population in the world with over 298 million users, and an internet penetration rate of 22.6% surpassing the 21.9% world average. In an effort to accommodate the increasing demand for video, e-commerce and online gaming, China added 8.7 million high-speed connections last year alone bringing the total number of broadband connects to over 75 million. These figures will continue rise, especially when you consider that only 1 in every 2 Chinese has internet access today.

After falling nearly 80% from their peak in July 2008, crude oil prices have started to move higher. Currently, oil per barrel is trading around $70 -- something I've been projecting all year long. To reflect the jump in crude oil prices, China's National Development and Reform Commission lifted retail prices for gasoline and diesel on Monday. This move bodes well for Asia's leading oil refiner. As the number-one supplier of gasoline and other oil products to China, this state-owned enterprise will benefit nicely from elevated oil prices. In the past three months alone, the company's shares have popped nearly 60%.

With expendable income expanding nicely in recent years, more and more Chinese are taking vacations to some of the hottest tourist destinations in China and all of Asia. This likely includes visiting the terra cotta museum in Xian, touring the capital city of Beijing and gambling in Macau. And like many Americans, the Chinese are turning to the Internet to book their flights, hotels and rental cars. China's leading online travel services company has been the biggest beneficiary of this trend -- shares are up nearly 80% year to date.

China's National Development and Reform Commission lifted gasoline and diesel prices on Monday to reflect the jump in oil prices since the beginning of the year. Crude oil is now trading near $70 per barrel. The move higher and the boost to retail prices bodes well for this Chinese offshore driller, which is already up 50% year to date.

North Korea has caught the world's attention in recent weeks with its nuclear device testing and short-range missile firing. While nations like the U.S., Japan and South Korea are working hard to suspend shipments to North Korea and cut financial relationships with the nation, China's action holds the biggest influence. That's because China is North Korea's biggest ally and largest trading partner. So when China announced that it was suspending government exchanges with North Korea this week, it caught everyone's attention.

Earlier this week, we received more positive news out of China that reaffirmed my projection that the Chinese economy is bouncing back and on track for a full recovery in the second half of the year. China's manufacturing sector expanded for the third straight month, with a PMI reading over 50. And following this encouraging report, China's benchmark stock exchange in Shanghai added another 3%.

After the tumble that most real estate markets around the globe took, I know it's hard to believe that any of them are on the verge of a turnaround. But considering the Chinese economy and the influx of bank lending occurring there today, China's real estate market is on track for a turnaround. And there are two great ways to play this rebound. My two China Strategy recommendations -- a Chinese developer and a Chinese real estate services company -- are directly in line to profit from this trend are up nicely this year -- 182% and 73%, respectively. Learn what's fueling this rebound and how you can start profiting today.

Over the weekend, it was announced that India's Congress Party had won the country's political election with Manmohan Singh becoming the new Prime Minister. Indian's and investors alike cheered this recent development, pushing India's Sensex index up 17% in trading on last Monday. While this is a positive development for India, I remain hesitant that this equals brighter skies ahead for Asia's third-largest economy.

One of the hot topics in the technology sector this year is the U.S.'s switch from analog to digital transmission. What's interesting, though, is that other countries around the globe are also making this move. In fact, the Chinese government announced a mandate to broadcast all TV programs in digital format by 2010. This is creating an incredible investment opportunity in China's TV market.

The Chinese government continues to take advantage of the lower energy prices, creating deals to secure energy resources at low levels. These efforts were exemplified recently in the deals that Sinopec is working on with Brazil and Exxon Mobil. And these deals bode well for Sinopec's shares going forward.

It's been a year since pro-China President Ma Ying-jeoh took over the reigns of Taiwan's government. And immediately after being sworn into office, Ma started taking steps toward a better relationship with Mainland China. So far, this move has definitely paid off.

It's been an incredible two months for the global stock markets. Since March 9, we've seen many of the major stock markets rally strongly. And after such a strong rally, I'm not surprised that many are wondering if we've finally reached a bottom -- especially considering that the S&P 500 has now erased its losses for the year and is up 0.7%.

Word is spreading. People are catching on. And that means even more profits in the pockets of savvy investors. After the Chinese stocks markets were the worst performing markets in the world in 2008, investors dropped their Chinese investments and refused to believe that they would rebound strongly this year. Boy, were they wrong.

I'm back! Yesterday, my flight landed in Los Angeles, and immediately, I started compiling my research and findings from my 10-day tour of five Chinese cities -- Beijing, Shanghai, Shenzhen, Hong Kong and Macau.

Greetings from China! I've been traveling around China for the past week, visiting the great cities of Beijing and Shanghai. And today, I'm writing to you from Shenzhen. My tour group consists of some China Strategy subscribers, and we've been doing a little boots-on-the-ground research over the past week. And what we've discovered has been truly eye opening for many of them.

A recovering economy? How can that be? After months and months of dismal economic data -- falling home prices, rising unemployment and withering consumer confidence -- it's hard to believe that's there's an economy on the verge of an economic turnaround. But that's exactly what's happening in China.

It's hard to believe that solar power is a hot investment idea right now, considering that oil per barrel costs around $50. But the reality is that solar power is one of the fastest-growing renewable energy sources today! In fact, in a five-year span, the global solar power market grew 38%. To me, that spells opportunity.

It's been an incredible three weeks, with the U.S. government and Treasury taking bold action to overcome the current economic and financial crisis. Based on recent action by policymakers, I'm growing more optimistic about the financial sector, and actually think that we may be seeing the beginning of a long bottoming process.

What was the big news this week? That's easy: Yesterday's U.S. Federal Reserve decision. It appears that Fed Chairman Ben Bernanke is finally understanding the severity of the U.S. economic situation and is willing to take necessary action. As a result, he's living up to his nickname "Helicopter Ben."

After losing incredible amounts of money in 2008, most investors entered 2009 wondering which market would offer the best opportunities to make back their losses from last year. Unfortunately, most global stock markets haven't cooperated so far this year, and many investors have lost even more money.

The bloodbath continued this week with global stock markets starting the first week of March on a pretty dour note. And things didn't get any better as the week progressed…

The numbers aren't pretty. The data is ugly. And the rumors are deadly. When we bid farewell to 2008 a couple short months ago, we all knew that we weren't saying good-bye to the economic and financial woes of that year. Nope, they definitely have followed us into 2009, and have continued to wreak havoc on global economies and stock markets.

One of the hottest topics in the media right now is the rising unemployment rate in countries around the globe, especially with the massive layoffs occurring at some of the world's largest companies. Undoubtedly, rising unemployment is a big problem.

With crude oil trading below $40 per barrel, the last place most investors are looking to put their money to work is in the alternative energy sector. But the fact of the matter is that there are still profitable opportunities in this sector, particularly in solar power.

During these tough economic times, there's an interesting phenomenon occurring in China. More and more Americans and Europeans are moving to the Greater China region.

Gong Shi Fa Tsai! That's a traditional Chinese New Year greeting of "Congratulations and Make Money!" Around the world, ethnic Chinese celebrated the Chinese New Year on Monday, ringing in the Year of the Ox.

There's no denying the strength of the Chinese economy now. Last week, it was announced that the size of the Chinese economy has now surpassed one of the biggest economies in the world -- Germany.

We've finally bid farewell to 2008, but now I'm sure that most investors are wondering what 2009 has in store for them. Well, as I'm sure you already know, we're not out of the woods yet with the global financial crisis.

"It's like going from the Jetson's to the Flintstones." That's how Thomas Friedman, the best-selling author of The World Is Flat, described his recent experience of returning to New York City after visiting Hong Kong. What's interesting is that I felt pretty much the same way after returning to Los Angeles from my two-week trip to Shanghai, Hong Kong and Taipei.

We're merely hours away from ringing in 2009, and I'm sure many of you are ready to say good riddance to 2008. This year, by far, has been one of the most difficult years in financial market history. The historical events that occurred in 2008 rocked the global economy and financial markets. And domestic and international investors were left reeling in the aftermath.

One of the keys to being a successful investor is flexibility. This is extremely important today, as the investment climate seems to change on a regular -- if not daily -- basis. When the investment environment changes like this, you must be willing to adjust your strategy accordingly in order to be investing in the most profitable opportunities.

Greetings from Shanghai! I've recently arrived in China for a two-week visit, where I'll observe firsthand how the country is faring the current global economic slowdown. Since I've only been in China for about two days now, I haven't had that much time to truly examine how the Chinese economy is doing. But, one thing is clear: Chinese stocks are finally decoupling from U.S.-traded shares.