Chinese companies benefiting from the windfall face tough competition from more appealing stocks in the current bull market, but generous government investment makes infrastructure stocks worth a look.
Chinese investment in infrastructure is particularly high for a number of reasons. Pouring money into rail and other projects was the biggest part of the $586 billion stimulus plan to pull China out of the global recession. Still a developing country, China is growing at around 8% annually, and need massive long-term infrastructure development. Finally, another important factor is the Chinese economy depends much more on fixed asset investment than more mature economies that rely heavily on consumption. To read Gene Linn’s full article, sign up for a free one-year subscription to EQUITIES Magazine. To access the current issue of EQUITIES Magazine and more, click here.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
