Chinese Companies Are More Important Than Ever

China continues to be a growth engine. With a maturing economy investing in the best Chinese companies is much safer than it used to be. There are more analysts covering these companies which should provide some protection against fraud. You may also want to establish a position before pension plans and other institutional need to buy Chinese exposure to maintain their benchmark investment style (such as being mandated to follow the MSCI All World Index).

Every day it becomes easer to be a smart investor in Chinese companies. I have found a one click way to profit from the best China has to offer.

Let the experts pick and choose what Chinese stocks you should own and spend your research budget on other areas of investing. Dr. Liang is the chief economist of China International Capital Corporation. Her team designed the CICC CSI Select 100 Index to capture the best wealth generating companies in China.

The index will hold up to 100 of the best and brightest companies. To make the list a company needs a high and stable return on equity, high dividend yields, high growth rates and good liquidity.

This screen automatically eliminates about 90% of the 3500 lists stocks in mainland China. The top 100 are then included in the index with a semi annual rebalancing.

Since you can not hold an index directly we must use a fund that tracks the index. In this case KraneShares made the CICC China Leaders 100 Index Fund (KFYP). Buying this fund today sets you up for potentially explosive growth as the world decides to buy Chinese stocks. You will also be paying about half the current valuations of US Stocks (looking at earnings, sales and book value).

Cheers to your health and wealth.

Divider provided by barge

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. The information provided should NOT be considered advice. The topics discussed are risky and have the potential to lose a substantial amount. I am not an investment professional and therefore do not offer individual financial advice. Please do your own research before investing.

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