OK on top of the millions of reasons to invest in China that I already mentioned, (you can find them in my 2007 3rd quarterly report at www.oneonian.com), here is one more. Numerous Chinese companies are listed in HonkKong or US market through ADR, but not in the Chinese Domestic market like in ShangHai (see the Pretty Girl Effect). Well, this will slowly change. More and more chinese companies will open its door to its domestic investors, like what we see currently with PetroChina. PTR is up 10% today, 25% in past a few days, due to its expected IPO in ShangHai market. According to some other sources, domestic valuations are 30% higher than other markets, arbitrage will eventually balance this out perhaps, regardless, with new IPOs of existing large Companies that are already listed in other stock markets, will further drive these Chinese companies up in price.
3 Responses to One More Reason to Buy China
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Hey man, it was nice to see you again. I’m glad everything is going well for ya. What is your take on Shanda Interactive, SNDA? Can I get a free technical analysis?
its no different than the The9 NCTY. and its not a technical analysis I am doing, I am not looking at charts and patterns. My analysis probably doesn’t mean that much to you, since you just a “day trader” or options whatever. But I don’t like this company’s long-term outlook. You know how many software companies and start-ups there are in china? lots smart nerds are without jobs and working at labor jobs. any software companies are in a high competitive market in china. no moat, so no investments from me. that’s just my 2 cents.
I’m not just a day trader…I also have long term assets. I look at it as more of a blend investor.