Beverly Hills 12/29/2009 12:35:30 AM
News / Business

Chinese Infrastructure Stocks Worth Investigating

Finance World News Update by EQUITIES Magazine

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.

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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.

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