Chinese stocks have been severely hit lately which means that there might be investing opportunities.
In this article I will share:
- CHINESE STOCKS LIST – A list of 90 Chinese stocks with a short description, PE ratio and price to book value. I also divide the stocks into several groups that will make it easier for you to find what best fits your portfolio. We’ll also discuss how investing in China is tricky, there are outright frauds, there is a lot of growth, there is a little bit of everything so it is not easy to get exposure in a proper way.
- WHAT AM I LOOKING FOR IN CHINA AT THE MOMENT when discussing China like key factors to watch, fundamentals and most importantly, the things not obvious to the market.
I am in the process of building my long term model portfolio. I am looking for gems to cover, follow and perhaps add to my Chinese part of the portfolio. I wish to be exposed to China with a 8% to 15% starting exposure that goes wherever it goes during the years. Something that I can manage through time in a portfolio.
Thus, what am I looking for within Chinese stocks is:
- Companies that will be doing great even 10 years from now and have a good chance of delivering business returns of above 15% on the current price.
- This means that the current political and economic turmoil is a great opportunity to buy in.
To find that I have to focus on the:
- Potential scale
- Business moat
- Margin of safety, value
- The not obvious things
Comprehensive analysis of the Chinese stock market and China stocks
The only way to find a few stocks in China that offer the best chance of being great companies even in a decade, are trading at a fair price, and show the potential to become great investments and perhaps even portfolio crown jewels, is to check every stock traded, make earnings models on the most promising and compare the risk reward outlooks.
Key factors to watch when analyzing Chinese stocks
The key factors to watch are those that are not obvious when it comes to analyzing Chinese stocks. Cash flows are key, growth , confirmation of trend or business model, especially cash flows that can be distributed to shareholders. Shareholder friendliness is a positive and quality management too. There have been many scams when it comes to Chinese stocks but alongside thorough research, I believe the risk reward is acceptable.
Of course, this always within a balanced portfolio developed over the long term.
How do I go from here?
The key is to study as many companies as possible. Sometimes you find key date for one company when you research another one in the field. Therefore, the only thing to do is to dig deep, read lots of annual reports, create potential risk reward earnings models, make sector analyses and at the end, we might find something to buy, hopefully.
Let me show you how to download the list:
Click on the link to go to my Stock Market Research Platform:
Scroll down there to the curriculum and enlarge it. Under the paragraph discussing China, you can download the list of Chinese stocks. (you can see PREVIEW – on the right side.
Check out the Youtube video for more info and a personal approach to this.