Following China’s Money Trail
Everyone knows about the China stimulus plan. Announced in November 2008, the plan pumped $585 billion dollars into the Chinese economy… much of it invested directly into infrastructure – bridges, dams, roads, communications, real estate development, etc. 
But only those who knew where the stimulus was going have been able to make money from it.
Look at the companies that have been directly inline to receive money from the plan:
Cement
West China Cement Limited (WCC)17 – UP 605%
Yunnan Bowin Technology Industry Co.,Ltd – UP 96.3%18
Anhui Chaodong Cement Co., Ltd – UP 67.3%19
Steel
Sutor Technology Group Ltd. (SUTR) – UP 281%20
China Precision Steel, Inc. (CPSL) – UP 173.2%
Commercial Metals Company (CMC) – UP 96%
Communications
City Telecom (H.K.) Limited (CTEL) – Up 93.2%
Orsus Xelent Technologies Inc. (ORS) – Up 105.7%
Shanghai Broadband Technology Co., Ltd – UP 156%
Energy
Yanzhou Coal Mining Co. (ADR) (YZC) – Up 114.1%
Orsus Xelent Technologies Inc. (ORS) – Up 105.7%
Harbin Electric, Inc. (HRBN) – Up 92.6%
These are just a few of the companies that have seen share prices take off as stimulus money poured in.
There are companies all across the investing spectrum in China, skyrocketing because of the government’s attentions.
If You’ve Read This Far – Congratulations
I believe this puts you in a very unique class of individuals.
And because you’ve followed with me this far… I’m going to show you the top Chinese company on my radar right now.
It’s a stock I’ve been following for some time. It’s already more than doubled so far – it’s up 114% this year.
But I believe that’s just the beginning.
China Winner #1
My favorite company right now is a small privately held firm perfectly positioned for profit from one of China’s biggest concerns: energy.
China’s growth is putting massive strains on their existing electrical grid – strains which are becoming a problem for a country that is relying on modernization to keep the economic engine humming.
As many as 30 million Chinese in 28,000 villages still live without power and the Central Government is taking aggressive steps to get power to those people.
The necessity for reliable power infrastructure and the opportunity to provide it should lead to big returns for the key players in this sector.
Which is where my favorite pick comes in. This company is sitting on the leading edge in power-generation, and is one of the leading companies favored by China’s government.
They are the largest provider of distributed generation (DG) systems in China, focusing on energy-efficient and environmentally friendly projects of 25MW to 400MW.
In case you’re not familiar with DG technology, they are small-scale electricity production facilities that provide power to meet local demand.
The benefits of DG technologies go deep. Traditional Central Power Generation costs 3 to 5 times as much as DG technology.
Because energy is generated locally, DG plants are much more reliable, with very little exposure to the national grid.
This company provides DG power throughout China with 17 existing facilities with average capacity of 5MW to 24 MW.
They are also building 10 additional plants in process.
But here’s where things get interesting.
This company is the only private company in China with a Class-A power system construction license.21
This makes them the only non-governmental entity that can build and maintain these DG plants… giving them a virtual lock on the industry.
In a country the size of China, with the fastest growing economy in the world, that is completely reliant on efficiently expanding its electrical capacity – this company is a veritable gold mine.
And there’s more to this story.
In 2008, they expanded into the wind energy market… and built China’s largest wind turbine manufacturing facility, located in Shenyang, Liaoning Province…with a total annual production capacity of 1,125MW.
As we speak, they’re working hand in hand with the Chinese Science Academy to develop new energy technologies in wind, solar, magnetic, geothermal, tidal and biomass. When completed, they will own 70% rights to new technologies.
China is very serious about renewable energy.
A new Chinese initiative is set to increase wind energy output to 120 gigawatts by 2020. To meet this demand, this power company has been creating joint ventures with GE (GE), and foreign turbine makers such as Vestas and German Furlander Wind Generation.
To support this goal, the Chinese government announced in Feb. 2009 that it will invest $88 Billion in wind, solar & nuclear capacities.
To meet the 2020 wind generation goals set forward by the Central Government, there will need to be an estimated $267 billion required.
But the story doesn’t stop at the Chinese border. This powerhouse (and I mean that literally) has significant international experience with operations in Southeast Asia, Middle East, Africa and Eastern Europe.
After the U.S., China is the fastest growing wind generating country in the world, and it is expected to be the largest by 2015.
The bottom line is that China has enormous energy demands… and this company is sitting in the ideal position as one of the favored companies within China.
Projected Gains for this stock: 341.6%
And those gains don’t count the 114% so far this year… so it’s definitely not too late to get in on this baby and enjoy the ride.
With China’s massive stimulus money pouring into power generation – and the growing movement to build up alternative, more efficient less polluting power sources – this company is a close to a no-brainer as you’re likely to find out there…
… and definitely offers more potential to produce these gains than any company you’re likely to find on the Dow, the NASDAQ or the S&P.
Let me put this as simply as I can
If you’re an investor and you’re not actively considering China as part of your strategy, I’ve got news for you…
… you don’t have an investing strategy.
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Over the next 20 years, there won’t be a single industry or business segment on this planet that will not be completely dominated… or at least heavily influenced… by the Great Red Dragon.
They have an estimated $2.3 trillion in reserves… and 1.3 billion people they want to bring into the 21st Century.
They’ve made more progress in the last two decades of market reforms than they did in the previous 2,000 years.
And you can either be in the game, or on the sidelines. If you choose to play, the rewards could be impressive.
Let me show you another winner I’m working on.
China Winner #2
This second China Winner is at the forefront of one of the most important aspects of China’s development… water treatment.
Getting clean, safe, potable water to all of the people of China is a major challenge for the government.
In a recent report delivered by China Research and Intelligence, of the 270,550 square km of water in China – an unbelievable 70% of the rivers, lakes, and seashores… and 90% of its underground water supply in urban areas are polluted.
Also, China suffers from similar drought conditions that are facing many parts of the world.
In early February 2009, China declared a drought emergency in the Hebei, Shanxi, Anhui, Jiangsu, Henan, Shandong, Shaanxi and Gansu provinces, which are provinces in central and northern China.
The Chinese government has recognized this water crisis. In its 11th five-year plan, the government allocated 1 trillion Yuan for investments in the water sector.
The products offered by China Winner #2 focus on addressing the key steps in the water treatment process: filtration, water softening, water-sediment separation, aeration, disinfection and reverse osmosis.
Founded in 1989, they offer a comprehensive set of more than 80 complementary products across the following three product categories:
- Circulating Water Treatment Equipment.
- Water Purification Equipment.
- Wastewater Treatment Equipment.
With over 80 distributors throughout China in 28 provinces, including most of China’s key economic regions, they believe their nationwide distribution network is one of the largest among water treatment equipment suppliers in China. This extensive network allows them to be closer to their end-user customers and enables them to be more responsive to local market demand than many of their competitors.
As one of the first privately owned companies in China to supply water treatment products and through joint efforts with their distributors, they have developed a broad base of end-user customers throughout China.
If you were ever looking for a chance to get in on what could possibly be a incredible growth story at the very front end major trend – China Winner #2 could be your chance.
Better still is that they are going to be funded in large part by the only government in the world sitting on $2 trillion in cash, as part of a $1 trillion project.
Projected Gains for this stock: 600%
Now, of course, I can’t promise you that you’ll make a million dollars in the next four months. Nobody would, could or should do that. All markets have their up and downs.
But I will tell you this – I believe my information will give you a better chance of ever making money in China than you’ve ever had before.
Information like this:
China Winner #3
China is quickly becoming the No.1 automotive market in the world and China Winner #3 provides a key component (steering columns) to multiple auto manufactures.
Based in Hubei Province, People’s Republic of China, China Winner #3 is a leading supplier of power steering systems and components to China automotive industry, operating through nine subsidiaries.
It has more than ten years experiences in power steering manufacturing. In 2008, the Company sold approximately 1.3 million systems and components compared with 1.1 million in 2007.
China Winner #3 owns two trademarks covering automobile parts and twelve Chinese patents covering power steering technology. They have business relations with more than sixty vehicle manufacturers.
China has outpaced the United States in auto sales in the first half of this year, making itself the largest auto market in the world – the beginning of what could be a lasting trend.
From January through May, Chinese auto sales topped 4.96 million units, up 14.29% from a year earlier, according to China Association of Automobile Manufacturers (CAAM).
China’s middle class continues to thrive, more and more are going to be demanding new automobiles to drive… and this company is the one making the parts to keep that dream on the road.
Projected Gains for this stock: 168%
