Four Best Ways to Invest in China Include a Mutual Fund and Several Growth Stocks

Paul Dykewicz

Chinese Flag in Shape of China

Four best ways to invest in China include a T. Rowe Price (NYSE:TROW) mutual fund and three growth stocks.

The four best ways to invest in China may gain enhanced promise now that former Vice President Joe Biden appears to have won the U.S. presidential election and his diplomatic experience may provide a stabilizing influence that could reduce uncertainty for investors. However, China may need to curtail its aggressive behavior in the South China Sea and cut back on its intellectual property theft, among other transgressions, to avoid the kind of conflict that developed with outgoing U.S. president Donald Trump.

Kevin O’Leary, the chairman of O’Shares ETFs and a wealthy panelist on the “Shark Tank” television program, said he wants an even playing field to do business in China. If Chinese companies are able to litigate in the United States for intellectual property and other matters, U.S. companies should be allowed the same access to legal redress in China, O’Leary said in recent podcast.

Best Ways to Invest in China Could be Enhanced by Creating a Fair Business Climate

“I’d be happy to delist all their companies off the exchange and not give them access to the courts until they wake up and give us the same because that’s exactly where we are,” O’Leary said. “We’re in the same boat.”

For 25 years, O’Leary said the current system that restricts American companies from operating in China and gives Chinese companies far greater rights in the U.S. system has been drastically unfair. It is time to rectify the business conditions that are tilted greatly in China’s favor, he added.

“I’m not on board for the pollical solution,” O’Leary said. “I want hardcore head squeezing because that’s what the Chinese understand.”

Paul Dykewicz completes an interview with Kevin O’Leary, chairman of O’Shares ETFs, in Las Vegas.

Scaramucci Cites Problems in Hong Kong, Taiwan and China

Anthony Scaramucci, founder and managing partner of Skybridge Capital, served for 11 days as President Trump’s White House communications director and said during the podcast with O’Leary that key U.S. trade issues involve Hong Kong, Taiwan, China and the latter country’s use of concentration camps to persecute ethnic and religious minorities.

The United States, Canada and other western countries should support the freedom movement in Hong Kong, Scaramucci said. New laws passed in Hong Kong will create dissension there, said Scaramucci, who added that its residents may seek refuge in the United States and elsewhere amid China’s crackdown on freedom.

China’s construction of military installations around the South China Sea is a violation of the United Nations Charter and international law, Scaramucci said. President-elect Joe Biden has been “pretty forceful” in the past on such transgressions and he “needs to maintain” that stance when he becomes president, Scaramucci said.

The United States and Europe Should Unite to Address Chinese Provocations

As far as the growing tensions with China and its aggression in the South China Sea, Scaramucci said he supports the United States and its population of 330 million people acting in concert with European nations to build a coalition of 1 billion people to increase their collective clout in responding to the threat.

“I think that the 1-billion-person marketplace might be able to provide more leverage,” Scaramucci said.

To contest China’s concentration camps, the “global society” will need to figure out what to do about that “serious tragedy” occurring in the country, Scaramucci said. Steps could be taken by the leaders of other countries to speak out publicly against those practices, he added.

Pension Fund Chairman Carlson Discusses Best Ways to Invest in China

“I continue to recommend T. Rowe Price New Asia (PRASX) for investing in Asian emerging markets generally and China in particular,” said Bob Carlson, chairman of the Board of Trustees of Virginia’s Fairfax County Employees’ Retirement System with more than $4 billion in assets and head of the Retirement Watch investment newsletter. “The fund concentrates in a relatively few stocks of companies with strong growth rates but that are selling at reasonable prices.” 

The fund is about 47% invested in China-based companies, with another 13% in Taiwan and 10% in Hong Kong, Carlson said. The rest of the portfolio is primarily in other Asian-based companies that are likely to benefit from continued growth in China’s economy and its companies. Major holdings in the fund include Alibaba Group, 10%; Tencent Holdings, 9%; Samsung Electronics, 8%; Taiwan Semiconductor, 7%; and AIA Group, 4%.

“Asia, led by China, is likely to have the fastest-growing economy of any region around the globe,” Carlson said. “The region has less debt than most of the rest of the world and is better positioned to rebound from the pandemic.”

Chart courtesy of www.stockcharts.com

PRASX added to its favorite holdings during the stock selloff last spring to gain exposure to companies that had the potential to emerge from the crisis in stronger positions, Carlson continued. The fund owns 72 stocks and almost 50% of its portfolio is in its 10 largest positions, he added.

Pension fund Chairman Bob Carlson answers questions from Paul Dykewicz in an interview before social distancing became the norm after the COVID-19 outbreak.

Wall Street Money Manager Shares Her Best Ways to Invest in China

“Chinese companies were a complete no-fly zone for me for years because the accounting standards don’t encourage a lot of long-term confidence,” said Hilary Kramer, host of a national radio program, “Millionaire Maker,” and head of the GameChangers and Value Authority advisory services. “Then the trade war raised the threat that these stocks could get delisted at any moment if hostilities escalated. The accounting hasn’t improved — just take a look at the failed Ant IPO — but the geopolitical situation seems to be calming down, which makes a few of these companies attractive under the right conditions.”

Kramer added that subscribers in her IPO Edge trading service have done “very well” investing in Agora Inc. (NYSE:API), a software company in Shanghai, China, and Li Auto Inc. (NYSE:LI), an electric vehicle manufacturer in Beijing, China, as shorter-term trading opportunities. Whether they are “great companies” to hold forever is hard to say until the “nebulous corporate reporting” by Chinese companies clears up, Kramer added.

Chart courtesy of www.stockcharts.com

There definitely is money to be made buying low, holding on for a few weeks or months and letting momentum do all the work, Kramer counseled. Her subscribers “doubled” their money in LI and that was before the election when the trade war was a persistent question, she continued.

Chart courtesy of www.stockcharts.com

“There was a risk that we would need to exit the position at any time… it just didn’t play out that way,” Kramer said. “Now that threat has receded. About 8-9% of all stocks that have gone public this year are from China. That side of the universe is opening up again, not as a buy-and-hold proposition, but as the Pacific chill keeps thawing, we’ll have more options.”

Columnist and author Paul Dykewicz interviews money manager Hilary Kramer, whose premium advisory services include 2-Day TraderTurbo Trader, High Octane Trader and Inner Circle.

Hong Kong Online Brokerage Ranks Among the Best Ways to Invest in China

Futu Holdings (NASDAQ: FUTU), a Hong Kong, China-based holding company in digitized brokerage and wealth management, is recommended in Fast Money Alert, co-led by seasoned stock pickers Jim Woods and Mark Skousen.

Chart courtesy of www.stockcharts.com

Woods, who heads the Successful Investing and Intelligence Report investment newsletters, as well as the Bullseye Stock Trader advisory service, elaborated that Futu provides online brokerage services and margin financing services through software and websites. Futu also offers investing services through its digital brokerage platform under the name of Futu NiuNiu.

The company’s offerings also include trade executions and margin financing, which allow its clients to buy and sell securities such as stocks, warrants, options and exchange traded funds (ETFs) across markets, Woods continued. As a result, Futu helps make capitalism possible in China and Hong Kong, he added.

The stock is delivering for its shareholders by rising 337.6% in the past year, a performance that ranks among the top 2% of all publicly traded companies.

Paul Dykewicz interviews Jim Woods before the COVID-19 social distancing restrictions.

The Four Best Ways to Invest in China Should Not Unravel under a Biden Administration

America’s China policy may well entail a continuation of the escalation of trade disputes that gained attention during the past few years, said University of Chicago Associate Professor Paul Poast. The tariff war may not remain as intense as it became under business-savvy President Trump but concerns about China’s theft of U.S. intellectual property and potential exploitation of its status as a developing country are bipartisan issues that will remain relevant regardless of who is the president.

The COVID-19 pandemic has intensified recently to claim the lives of 259,880 people in the United States among a total of 12,589,229 cases, including President Donald Trump, whose condition became serious enough that he was hospitalized Friday, Oct. 2, until Monday, Oct. 5. Worldwide COVID-19 cases have totaled 59,759,535 and led to 1,409,208 deaths, as of Nov 24, according to Johns Hopkins University. America has reported the most cases and deaths of any country.

The best ways to invest in China amid COVID-19 give investors a variety of choices. Growth stocks headquartered in China or that conduct substantial business there are a promising way to try to profit.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street JournalInvestor’s Business DailyUSA Today, the Journal of Commerce, Seeking Alpha, GuruFocus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Paul also is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The book is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others.

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