Best Chinese Stocks To Hold In 2012

China has been a hot bed for investors for a few years now, and most of the easy money seems to have been made. In fact, investors who bought into the China 25 Index (FXI) in Oct 2004 are up over 100% in 30 months.

 

Since my last analysisof the China opportunity last December, FXI is up 20% in 6 months - a stellar performance. But investors that are finally opening up to China or those that have taken profits along the way might wonder which companies to invest in. After all, it seems like there are new China stocks and ADR's sprouting up every time you look. Here are some stocks that I believe are sound Chinese investments that I believe will outperform the overall market over the next 12 months.

Best Chinese Stocks To Hold In 2012:Suntech Power Holdings Co. LTD. (STP)

 Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Its products include monocrystalline and multicrystalline silicon PV cells; PV modules; and building-integrated photovoltaics products. In addition, the company provides PV system integration services, including designing, installing, and testing PV systems used in lighting for outdoor urban public facilities, as well as in farms, villages, and commercial buildings; and project development services. Its products are used to provide electric power for residential, commercial, industrial, and public utility applications. The company sells its products through value-added resellers, such as distributors and system integrators; and to end users, such as project developers primarily in Germany, Italy, Spain, France, Benelux, Greece, the United States, Canada, China, the Middle East, Australia, and Japan. Suntech Power Holdings Co., Ltd. is headquartered in Wuxi, the People?s Republic of China.

Advisors' Opinion:

• By Curtis At 2012-2-22

  Suntech Power Holdings Co., Ltd.(NYSE: STP) closing price in the stock market Tuesday, Jan. 3, was $2.35. STP is trading -3.28% below its 50 day moving average and -46.49% below its 200 day moving average. STP is -78.30% below its 52-week high of $10.83 and 38.24% above its 52-week low of $1.70. STP‘s PE ratio is 30.52 and its market cap is $424.30M.

   

  Suntech Power Holdings Co., Ltd. is a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. STP also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers.

Best Chinese Stocks To Hold In 2012:Home Inns & Hotels Management Inc. (HMIN)

 Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• By Conrad At 2012-1-29

  Home Inns & Hotels Management (HMIN) is the largest hotel chain in China. Growth is as easy as opening new hotels … the cookie-cutter growth model. The company has no debt, unlike most hotel chains, and profit margins were 19.6% in the latest quarter.

Best Chinese Stocks To Hold In 2012:Sohu.com Inc. (SOHU)

 Sohu.com Inc., through its subsidiaries, engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Its brand advertising business provides advertisements on its portal Websites to companies to enhance brand awareness online; and online gaming business involves in the development, operation, and licensing of multi-player online role-playing games. The company?s sponsored search business provides placements in its search directory, as well as pay-for-click services for primarily small and medium-sized enterprise customers; and wireless businesses offers value-added services, such as news, weather forecast, chatting, entertainment information, ring tones, and logo downloads to mobile phone users. Sohu.com Inc. aggregates content for various channels, which cover news, sports, entertainment, business and finance, women, automobile, and information technology; online video content; and communication and community tools, such as alumni clubs, blogs, email, message boards, Web messenger, and social networking services. Its Web properties include sohu.com, a mass portal and online media destination; 17173.com, a games information portal; focus.cn, a real estate Website; chinaren.com, an online alumni club; and sogou.com, an interactive proprietary search engine. The company was formerly known as Internet Technologies China Incorporated and changed its name to Sohu.com Inc. in September 1999. Sohu.com Inc. was founded in 1996 and is headquartered in Beijing, the People?s Republic of China.

Best Chinese Stocks To Hold In 2012:Yanzhou Coal Mining Company Limited (YZC)

 Yanzhou Coal Mining Company Limited engages in the underground mining, preparation, and sale of coal. It involves in manufacturing, washing, processing, and selling steam coal used in the electricity power sector; and metallurgical coal used with coking coal in the process of pulverized coal injection, as well as operates six coal mines. The company also engages in the provision of railway transportation services; production and sale of coal chemicals, primarily methanol; and generation of electricity and heat. In addition, it involves in the manufacture and sale of mining machinery and engine products; and development of integrated coal technology. Further, the company engages in the transportation via rivers and lakes; sale of construction materials; and trading and processing of mining machinery. It has operations primarily in China, Japan, South Korea, and Australia. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China. Yanzhou Coal Mining Company Limited is a subsidiary of Yankuang Group Corporation Limited.

Best Chinese Stocks To Hold In 2012:China Telecom Corp Ltd (CHA)

 China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services in the People's Republic of China. The company?s services include wireline voice, mobile voice, Internet, managed data and leased line, value-added services, integrated information application services, and other related services, as well as prepaid calling cards. Its wireline voice services include local wireline services, domestic long distance wireline services, and international long distance wireline services. The company's mobile voice services comprise local calls, domestic long distance calls, international long distance calls, intra-provincial roaming, inter-provincial roaming, and international roaming. Its Internet access services consist of wireline Internet access services, including dial-up and broadband services, and wireless Internet access services. The company's integrated information application services include Best Tone services, which provide customers with phone number storage, enquiry, and call transfer services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge services, and software development. Its managed data and leased line services consist of services relating to optic fiber and circuits, such as optic fiber and circuit leasing, virtual private network, and bandwidth leasing. The company also offers other services, such as sales, rental, repairs, and maintenance of equipment; and provides consulting services, and e-commerce and booking services, as well as in the sale of telecommunications terminals. It serves government, enterprise, and residential customers. The company was founded in 2002 and is based in Beijing, the People's Republic of China. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.

Best Chinese Stocks To Hold In 2012:HSBC Holdings plc (HBC)

 HSBC Holdings plc provides various banking and financial products and services. Its Personal Financial Services group offers current and savings accounts, mortgages and personal loans, credit and debit cards, and payment services; wealth management services comprising insurance and investment products, and financial planning services; and consumer finance. The company?s Commercial Banking group provides overdrafts, receivables finance, term and syndicated loans, acquisition and project finance, and asset finance; payments and cash management services, including payments and collections, liquidity management, and account services; international trade products and services, such as export finance, guarantees, documentary collections, and forfeiting; and treasury services comprising foreign exchange, derivatives, and structured products. This group also offers capital markets and advisory services; commercial cards; insurance products; and online and telephone banking services. The company?s Global Banking and Markets group provides treasury and capital markets services comprising foreign exchange; currency, interest rate, bond, credit, equity, and other derivatives; government and non-government fixed income and money market instruments; precious metals and exchange-traded futures; equity services; capital markets instruments; and securities services, including custody and clearing services, and funds administration. This group also provides financing, advisory, and transaction services; and asset management services to government, corporate and institutional clients, and private investors. Its Global Private Banking group provides private banking, wealth management, and wealth solutions to high net worth individuals. HSBC operates through a network of approximately 7,500 offices in 87 countries and territories worldwide. The company was founded in 1865 and is headquartered in London, the United Kingdom.