Best Chinese Stocks To Hold In 2012

Encouraging data earlier this month led to a bullish beginning for the markets in September. Thus far, the S&P 500 Index is up 8.8% — propelled higher on good global economic news. At the top of the stock market news is strong data from China’s manufacturing sector.

According to two recent surveys, Chinese manufacturing activity rose in August for the first time in four months. The two surveys showed production, new orders and purchasing prices all climbed higher in the month. Given the strength in the Chinese economy, I continue to expect China stocks to outperform in the coming rally with another 25% to 40% upside by year-end.

Overall, despite the inevitable volatility in the markets along the way, the unprecedented growth drivers in China will continue directing investors to where the real opportunity resides.

Here are my top five China stocks to buy as we enter October.

Best Chinese Stocks To Hold In 2012:Feihe International Inc. (ADY)

 Feihe International, Inc. engages in the production and distribution of infant formula, milk powder and soybean, rice, and walnut products in the People?s Republic of China. It offers milk powder for infants and young children formulated for zero to six months, six months to one year, one to three years, and three to six years of age, as well as for expectant mothers, students, and for the middle-aged and elderly populations. The company also processes and distributes raw milk powder to beverage manufacturers and other wholesalers for use in their blended drink products. In addition, it offers soybean powder, an alternative to milk powder primarily for seniors; rice cereal, an alternative to milk powder principally for young children, teenagers, and seniors; walnut products, including walnut powder and walnut oil; and other products, which include cream, skim milk powder, full milk powder, butter, other related milk powder products, and water and cheese marketed primarily for children. Further, the company processes and distributes semi-finished rice cereal to wholesalers and retailers. As of August 9, 2011, it had approximately 200 company-owned milk collection stations; 7 production facilities with an aggregate milk powder production capacity of approximately 1,950 tons per day; and a distribution network that reaches approximately 80,000 retail outlets. The company was formerly known as American Dairy, Inc. and changed its name to Feihe International, Inc. in October 2010. Feihe International, Inc. is based in Beijing, the People?s Republic of China.

Best Chinese Stocks To Hold In 2012:China Unicom (Hong Kong) Ltd (CHU)

 China Unicom (Hong Kong) Limited, an investment holding company, engages in the provision of GSM and WCDMA cellular, and related telecommunications services in the People's Republic of China.. The company offers cellular and fixed-line voice and related value-added services, broadband and other Internet-related services, information communications technology services, business and data communications services, and domestic and international long distance and related services. Its 3G services include mobile Internet, mobile music, mobile TV, video handsets, mobile newspapers, and 3G data cards. As of December 31, 2010, the company served approximately 153.366 million GSM subscribers, 47.224 million fixed-line broadband subscribers, and 96.635 million local access subscribers in 31 provinces, municipalities, and autonomous regions in Mainland China. It also offers its services in the United States, Japan, and the United Kingdom. China Unicom (Hong Kong) Limited was founded in 2000. The company is based in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. China Unicom (Hong Kong) Limited is a subsidiary of China United Network Communications Group Company Limited.

Best Chinese Stocks To Hold In 2012:China Automotive Systems Inc. (CAAS)

 China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China.

Best Chinese Stocks To Hold In 2012:Spreadtrum Communications Inc. (SPRD)

 Spreadtrum Communications, Inc., through its subsidiaries, operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. It offers a portfolio of integrated baseband processor solutions that support a range of wireless communications standards, including global system for mobile communication (GSM), general packet radio service (GPRS), enhanced data rates for GSM evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), and high speed packet access (HSPA), as well as offer an array of multimedia capabilities, such as MP3 digital audio playback, touch screen, JAVA acceleration, digital camera support, motion JPEG, MPEG4, AVS and H.264 digital video playback, and 64-channel polyphonic ringtone playback. The company also provides single-chip CMOS multi-mode RF transceivers that perform across various standards covering GSM/GPRS, EDGE, wideband code division multiple access, TD-SCDMA, and high speed uplink/downlink packet access. In addition, it designs, develops, and markets a CMMB-based channel demodulator and audio/video decoder processor solution for the mobile television market. The company sells its products directly, as well as through distributors to brand manufacturers, independent design houses, and original design manufacturers primarily in China, Hong Kong, and Macau. Spreadtrum Communications, Inc. was founded in 2001 and is headquartered in Shanghai, the People?s Republic of China.

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:Changyou.com Limited (CYOU)

 Changyou.com Limited develops and operates online games in the People?s Republic of China. It involves in the development, operation, and licensing of massively multi-player online role-playing games (MMORPGs), which are interactive online games that might be played simultaneously by various game players. The company operates seven MMORPGs that include its in house developed Tian Long Ba Bu; and licensed Blade Online, Blade Hero 2, Da Hua Shui Hu, Zhong Hua Ying Xiong, Immortal Faith, and San Jie Qi Yuan. As of December 31, 2010, Changyou?s games in China had approximately 111.4 million aggregate registered accounts; 1.0 million aggregate peak concurrent users; and 2.7 million aggregate active paying accounts. The company was founded in 2003 and is based in Beijing, the People?s Republic of China. Changyou.com Limited is a subsidiary of Sohu.com Inc.

Best Chinese Stocks To Hold In 2012:Huaneng Power Intl (HNP)

 Huaneng Power International Inc., an independent power producer, engages in the generation and sale of electric power to the regional or provincial grid companies in the People's Republic of China. It involves in the investment, construction, operation, and management of power plants in China and Singapore. As of March 31, 2011, the company had controlling generating capacity of 54,402 megawatts, and a total generating capacity of 50,935 megawatts on an equity basis. Huaneng Power International Inc. was founded in 1994 and is headquartered in Beijing, the People?s Republic of China.