The Chinese Hot Stocks

The Chinese Hot Stocks

The Chinese Hot Stocks

$FXI, $YBAO, $BABA

China keeps on growing and that is going to spill into individual equities for the next few years, here are 3 China Stocks worth owning.

China’s economy grew at an average annual rate of 10 percent from 1979 to 2010. With the country shifting from export-driven growth to an economy powered by domestic consumers, the growth has trended lower since 2010, and the Chinese government declared a “new normal.”

While slower growth is under way, U.S. investment bank Morgan Stanley said in a 118-page report that incomes are rising.

China’s per capita income is now 8,100 U.S. dollars, according to the World Bank. The report said the figure is expected to pass the 12,500-dollar mark needed to reach high income status by 2027 and break out of the middle income trap.

Higher incomes bring about higher consumption, the report noted, estimating China’s private consumer market will reach 9.6 trillion U.S. dollars by 2030 and account for 47 percent of GDP.

 

iShares FTSE/Xinhua China 25 Index (ETF) (NYSEARCA:FXI)

iShares FTSE/Xinhua China 25 Index Fund (the Fund) seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index (the Index). The Index is designed to represent the performance of the largest companies in the China equity market that are available to international investors. The Index consists of Class H and Red Chip shares of 25 of the largest and most liquid Chinese companies. Securities in the Index are weighted based on the total market value of their shares. Each security in the Index is a constituent of the FTSE All-World Index. All of the securities in the Index trade on the Hong Kong Stock Exchange.

The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. The Fund’s investment advisor is Barclays Global Fund Advisors.

Institutional Holders

% Shares Owned: 56.40%
# of Holders: 302
Total Shares Held: 48,394,909
3 Mo. Net Change: 1,600,211
# New Positions: 9
# Closed Positions: 4
# Increased Positions: 25
# Reduced Positions: 19
# Net Buyers: 6

Performance for Ishares China Large-Cap Etf

Period %
Actual
% vs.
S&P 500
Rank In
Industry
Industry
Rank
4 Week 16.96 8.85 99 56
13 Week 16.15 4.36 99 38
26 Week 27.30 9.54 99 38
52 Week 46.54 17.15 99 36
YTD 16.96 8.85 99 58

YBCC Inc (OTCMKTS:YBAO)

A new entity is in at YBAO and the company is not a small operation, The Company is a manufacturer and research-based bio-science company.

The Company is engaged in manufacturing tablets, granule, oral liquid, powders, soft gels and capsules products. The Company distributes its products through its own network and white label products. It also has access to a member-based distribution system owned by its affiliated company.

YBCC Inc possesses manufacturing permits for food product, hygienic products, sanitary products and health products. The Company focuses on technology study and transfer of chondroitin and garlic oil; trading, cold storage, and pretreating of garlic, fruit, and vegetables products; trading of chemical products (excluding hazardous chemicals); import and export of goods and technology (excluding those restricted by government), and the manufacturing and sale of health products, including powder, granules, tablets, hard capsule, soft capsule products.

The Company’s main products are divided into two groups: health food products and hygienic products. The Company offers health food products, such as Phytocholesterol tabletting candy, Polydextrose tabletting candy, Dunaliella salina Haematococcus pluvialis tabletting candy, Dunaliella salina Gum Base Candy, Haematococcus pluvialis Gum Candy, Fish Oil Gum Candy, Earthworm Protein tabletting Candy, Collagen Protein tabletting candy, Krill Oil Gum candy, Phosphatidylserine tabletting candy and Milk Powder tabletting Candy. The hygienic product line includes gel for women, which is an anti-bacteria product, and skin comfortable liquid, which is also an anti-bacteria product.

Alibaba Group Holding Ltd (NYSE:BABA)

Institutional Holders

% Shares Owned: 40.56%
# of Holders: 1,720
Total Shares Held: 1,038,830,234
3 Mo. Net Change: 93,073
# New Positions: 34
# Closed Positions: 14
# Increased Positions: 173
# Reduced Positions: 120
# Net Buyers: 53

Growth Rates

Company industry sector
Sales (MRQ) vs Qtr. 1 Yr. Ago 60.74 24.58 26.62
Sales (TTM) vs TTM 1 Yr. Ago 57.49 22.05 12.76
Sales – 5 Yr. Growth Rate 51.21 21.11 5.06
EPS (MRQ) vs Qtr. 1 Yr. Ago 128.13 315.48 211.83
EPS (TTM) vs TTM 1 Yr. Ago 81.90
EPS – 5 Yr. Growth Rate 58.88 17.97 11.44
Capital Spending – 5 Yr. Growth Rate 51.92 17.02 3.03

Performance for Alibaba Group Holding Ltd

Period %
Actual
% vs.
S&P 500
Rank In
Industry
Industry
Rank
4 Week 19.02 10.76 99 75
13 Week 16.50 4.67 99 60
26 Week 30.25 12.08 99 66
52 Week 99.73 59.67 99 73
YTD 19.02 10.76 99 75
Alibaba Group Holding Limited, incorporated on June 28, 1999, is a holding company. Through its subsidiaries, the Company is principally engaged in online and mobile commerce through offering of products, services and technology that enable merchants, brands and other businesses to transform the way they market, sell and operate in the People’s Republic of China (China) and internationally. The Company’s businesses consist of core commerce, cloud computing, mobile media and entertainment, and other innovation initiatives.
Through investee affiliates, it also participates in the logistics and local services sectors. Retail commerce in China operated by the Company includes the China online commerce destination (Taobao Marketplace); the China third-party platform for brands and retailers (Tmall), and the sales and marketing platform for flash sales (Juhuasuan). Wholesale commerce in China operated by the Company includes the China domestic wholesale marketplace (1688.com).

International and cross-border commerce operated by the Company includes the global marketplace targeting consumers from around the world to buy directly from manufacturers and distributors in China (AliExpress); a platform within the Tmall for overseas brands and retailers to reach Chinese consumers without the need for physical operations in China (Tmall Global), and the wholesale marketplace for global trade (Alibaba.com).

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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