This excellent, highly useful book discusses the whys and hows of investing in growing Chinese markets.
How to Profit from China by Jukka Blomberg is a handy guide to investing in Chinese stocks.
Despite some recent stumbles, the Chinese economy continues to be a growth-oriented global powerhouse. As such, it only makes sense that investors would seek out Chinese stocks. But investing in Chinese stocks presents a special challenge, as Jukka Blomberg discusses in this excellent, highly useful book. Blomberg, an investor who created specialized analytics software to assess Chinese stocks, offers readers a road map to investing, starting with an overview of the Chinese market. Blomberg is clearly bullish on the Chinese consumer sector, believing that “for decades to come,” it will outperform “most other investment opportunities globally.” He writes that “the biggest gains will be in the areas of recreation, education, culture, transportation and communication”; in all of these areas, the author provides capsule summaries of major Chinese stocks, as well as stocks in environmental businesses, which also promise to be a significant investment opportunity.
Perhaps even more important than the author’s detail about specific stocks is Blomberg’s advice regarding exactly how to invest in Chinese stocks. He points out that it is very difficult to buy stocks directly from China’s two mainland exchanges; instead, counsels Blomberg, the investor can gain access to over 650 Chinese stocks on the Hong Kong, Singapore, and New York exchanges. The author offers helpful advice on how to work with each of these exchanges, as well as investing tips for Exchange Traded Funds (ETFs).
The final section of the book presents a practical approach for how best to identify promising Chinese stocks. Here, Blomberg imparts some of his own considerable knowledge of Chinese stocks, encouraging readers to use his free stock analytics and screening tools website, www.ChinaSpeculator.com. He also discusses his own personal philosophy for how to buy and sell stocks, a section that should be especially helpful to novice investors; Blomberg cites specific examples of such strategies as “buy in tranches and average up,” when to sell stocks, and how to cut your losses.
Included in the book are a number of tables and charts showing stock performance and other financial information that augment the text. The book is brief, compact, and informative; it is written in an easy-to-comprehend style.
As Blomberg states early on in How to Profit from China, numerous books cover why to invest in the Chinese economy, but few if any discuss the ins and outs of how to actually invest in China. This is the distinguishing factor that sets How to Profit from China apart and will very likely make the book valuable to anyone interested in investing in Chinese stocks.
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