Make Your Fortune In China's Second Surge

Robert Hsu, Editor

A Renewed Focus on Economic Growth

One of the reasons why China has been able to fare the financial crisis and global economic slowdown better than other countries is because Chinese policymakers were quick to take action and focus on what truly matters -- economic growth. In 2008, the Chinese central bank slashed interest rates immediately following the collapse of Lehman Brothers, and then continued its monetary easing policy throughout 2009.

Then, China's government took even more aggressive steps to weather the financial crisis with an economic stimulus package. This package is one of the biggest in China's history, with a price tag of $586 billion. That's much larger than the U.S.'s $168 billion stimulus package and Japan's $51.5 billion relief package.

In addition to the price tag, there are other things that set China's stimulus package apart from others. Mainly, it focuses on boosting domestic investments and generating jobs, which has supported the country's economy this year.

Overall, the economic stimulus package is strengthening China's domestic consumption and investments, which are the two driving forces of China's economic growth right now. China's domestic investment and consumption already contribute to 80% of the country's GDP growth. And I expect domestic consumption and investment to continue to be the driving forces of the Chinese economy this year.

That's because a big part of China's stimulus plan is its investment in domestic infrastructure with some $200 billion dedicated to new spending in low-rent housing, infrastructure in rural areas, roads, railways and airports. And China's domestic consumption will likely continue to grow in 2009, as well -- with the help of young, affluent Chinese that I call the Chuppies. Over the past three years, the Chuppies are finally becoming a mass consumer class, and I think this demographic group will keep China's economic growth engine humming for years to come.

Because of the Chinese government's quick action and bold steps to help China's economy rebound from the global financial and economic crisis, we're continuing to see the country report stronger economic data on a regular basis. In fact, just-released numbers for August saw an unexpected expansion in new lending in China as well as the country's industrial production rise at a faster-than-expected pace. Output from Chinese factories jumped a whopping 12.3% year-on-year, the most since August 2008. And when combined, these two pieces of good news are strong indicators for China's growth to continue to accelerate.

In addition, we received data recently that bodes well for the global economy as a whole, and China in particular. The latest data shows China's two main export regions -- the Yangtze River Delta surrounding Shanghai and Pearl River Delta surrounding Hong Kong -- are starting to pick up again. Ports in the Pearl River Delta region showed a 9.9% increase in electricity usage over the same period last year. This shows that export demand for Chinese-made goods is picking up again. A lot of the boost in Chinese exports right now is due to strong Christmas seasonal demand, as retailers recently put in a rush of orders. Because of the strong demand, Chinese export manufacturing factories are hiring aggressively for the first time in more than a year. This is an encouraging sign for China's economic recovery.

Although the Chinese government was able to successfully stimulate the economy with massive monetary easing and bank lending, most of the money initially flooded into the public sector. But because the Chinese private sector employs 60% of urban workers and 90% of rural workers, a pick-up in private sector -- led by exports and domestic consumption -- would lead to a broader and more evenly distributed economic recovery throughout the country.

Improving economic data like this is why I've stuck to my guns and remained focused on investing in the best opportunities in China this year -- despite the naysayers. Sure, China was one of the hardest hit stock markets in the world last year. But China is also proving they have one of the quickest-bouncing economies with the ability to overcome the global financial slowdown, already on-track to post 8% GDP growth this year. And that type of economic strength bodes well for Chinese stocks -- as we've already seen this year.

But what are the best investment opportunities in China right now? This is a great question! Not all Chinese companies are good investments despite the strength of the Chinese economy. That's why it's important to have a guide who knows the ins and out of the Chinese economy, as well as what industries are benefiting the most. And that's exactly what I can do for you!

Join China Strategy, and I'll point you to the best and most profitable investment opportunities in China today!

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In This Report:

China Strategy

China's economic recovery has captured the world's attention once again. On track to post more than 8% GDP growth in 2009 has sent investors back to the drawing board, looking for the best ways to profit from China's economic strength. But while China's economic recovery is creating profitable investment opportunities, not all Chinese companies are benefiting from China's economic rebound this year.

That's why Robert Hsu has made it his mission in his China Strategy service to help you profit from China's economic emergence–pointing out the best Chinese investments while avoiding the pitfalls. Just take a look at some of the gains his China Strategy subscribers already locked in this year:

China Aluminum, sold for a 181% gain
China Southern Airlines, sold for a 170% gain
Yingli Green Energy, sold for a 125% gain

And that's just a small sampling of the profits China Strategy readers have experienced this year. By joining his China Strategy service, you'll have instant access to all of his advice regarding China's economy and his current recommendations profiting from China's economic strength. Don't miss out on the next leg higher!

Over the past three years, Robert Hsu's has shared his firsthand knowledge of Chinese culture, business and government with his China Strategy and Asia Edge readers. His wealth of knowledge about and on-the-ground experiences in China have helped him direct investors to the most profitable investments in this great nation, while avoiding the pitfalls that most investors fall in to.

Robert was born in Taiwan, speaks Mandarin fluently, and reads and writes Chinese. But what really sets Robert apart from other investors is his rich history of investment success and his understanding of what's happening across Asia today. While employed with Goldman Sachs, Robert learned a great deal about international markets, equities, interest rates, currencies and commodities markets.

Since then Robert has started his own money management firm, and writes two investment newsletters: China Strategy and Asia Edge. Robert Hsu To stay on top of what's happening in Asia today, Robert visits China regularly, as well as employs a boots-on-the-ground team of analysts in China to provide him with up-to-the-minute details on what is happening in China. As you can see, Robert is perfectly positioned to stay on top of events shaping China's path to economic power.