The Second Coming of China
To many investors, China is an old, worn-out “been there, done that” investing story.
And some folks are downright scared of it. They got burned jumping into the “China rush” when China was the hot, next big thing – and they jumped out for good.
They tell Keith Fitz-Gerald, our China expert, “China rose fast and fell just as fast.”
What these skeptical investors don’t realize is, they experienced only the first chapter of the China story.
Ironically, the worldwide financial crisis marks the beginning of the second chapter of China’s remarkable rise to world, economic dominance.
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We call it…The Second Coming of China.
You see, what 99% of most westerners don’t understand is the Chinese see the financial crisis as one big opportunity for them.
China knows western companies are significantly weakened – and they’re doing everything to expand while the competition lacks the resources to act.
And China has more than enough money to do it! (see box)
More surprising still, they no longer depend on export income for revenue.
This is why you see all the news reports about China’s corporate and resource acquisitions, new business in Taiwan, and more than $95 billion in Yuan swap agreements around the world.
As you can see from this chart, this trend has been building for a while…
And it’s a trend that will continue for a long time.
China has the highest reserves per GDP on the planet…$2.1 trillion…
China has the lowest external debt per GDP of any country…
Bottom line: China has the most room to grow and all the resources to reach the top.
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The opposite is true of the advanced economies. They’re functionally bankrupt and printing money to get out of the financial crisis.
Meanwhile, China can spend its $2 trillion in reserves to pull way ahead. And when it does, it will be the biggest single liquidity event in mankind’s history!
That’s why we send our China expert, Keith Fitz-Gerald, to China four times a year. He gets a first-hand, ground-level view of the big changes going on right now. He meets with his “connections”…and takes a look for himself.
Then, he reports back to our readers on the “big picture”…and offers them specific ways to profit from China’s emerging dominance.
For example, in recent months, Keith gave our readers the chance to book a fast…
- 100% gain on the first Chinese company to benefit from free market principles
- 100% gain on a shipping company locked into China’s $585 billion stimulus plan
- 100% gain on China’s pre-eminent maker of photovoltaic solar panels
Free Trades! In fact, Keith turned these three recommendations into “no cost profits” by showing readers how to make back the original investment…and reinvesting just the profit. This has led to an additional 93%…98%… and 97%…on the three plays listed above…thus far!
But even with this…China is just getting started. You’ll want to be invested in the Middle Kingdom for the long-term. After all, China has had the world’s largest economy for 18 of the last 20 centuries, and it’s catching up fast.
That’s just one reason Horacio Márquez, our New Markets Specialist, calls this next company “the biggest long-term play in the world.” You see, statistics show that…
Your Lifetime Buying Opportunity #3
Electricity demand is a perfect indicator of GDP growth. Where electricity demand is growing, so is GDP. Where GDP is growing, so is demand for electricity.
Right now, China’s electricity supply is growing every year at a rate equal to the entire energy production of the United Kingdom!
In fact, The World Energy Outlook estimates that 45% of the growth in the world’s energy demand will come from India and China! The price tag? $10 trillion.
This chart from the Department of Energy’s Energy Information Administration says it all…
In short, China is going to be growing bigger and faster than anyone else for the next two decades at least.
And remarkably, one company is perfectly positioned to scoop up the lion’s share of this business.
This firm is a world leader in electricity generation and transmission and offers its clients (governments, utitilities, companies) comprehensive electricity and automation solutions.
With a market cap at about $40 billion (even after the crisis), this powerhouse gets about half its revenues from China and India and Europe. It’s building the heart of the new China, but it’s also well-diversified around the world.
As lesser developed countries surge forward – and the developed world replaces aging systems – this company has grown and grown and grown.
And it’s paying a nice little dividend to boot!
In fact, this company is so well-positioned to profit from the $300 trillion “recovery,” we call it an “heirloom investment” – a stock that could find a place in your family’s portfolio for generations.
Nevertheless, you can expect some immediate upside on this one, too…
Your profit target here is… 163.4%
But here’s what’s really interesting about The Second Coming of China…
It’s not just about China. It’s much, much bigger than that.
China is having an even bigger impact on the Asian countries surrounding China…and on all companies (including U.S. firms) doing business with China and its economic penumbra.
Consider what Keith has just reported…
Mike Ward is the Publisher of