Emerging Chinese market set for growth!

Monday, 15th June 2009 10:44 - by GedW

With world economies still shrinking, China stands out as the economy odd-one-out, as it aims to expand its economy by between 6% and 8% within the next 12 months, having invested some £400BN into stimulating the emerging economy. So, which UK companies stand to gain from the stimulus? In no particular order of China exposure (TIDM codes): BSST, CHNS, CMSH, ENK, ETC, FXC, GDG, CHL, GNG, HCM, JHL, LCHN, LRL, PMHL, PRL, SOLA, and WCC. All are well placed to benefit from the expected growth. This list is not exhaustive, but includes the obvious ones that I am looking at. A raft of fundraising appears to be gathering pace. With fund managers prepared to take the risk and provide expansion funding, now would be an ideal time to dip ones toe into this emerging market’s prospective expansion. With China’s infrastructure growing, the demand for raw materials in the construction of schools, roads, bridges, factories, power stations, hospitals and commercial centres will provide fertile ground for those UK-listed companies operating in, and associated with, China. China’s power demand is expected to grow by 8% per year, so look for those companies that can compliment and fulfil China’s natural shortfall. I hope we can expand on this Blog and your input is greatly appreciated.