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Trailing P/E ratio is under 8.5, Book value under 1.2, GDP growth in china is above 10%.
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What comes down must come up.
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I don't think small caps get enough attention from Chinese investors. Small companies have a hard time in China, but the market potential is not what holds them back. Government/bank/customer favoritism and confidence holds them back. You need connections to do anything in China, even get customers, but as the legal system improves in China, I think small companies will have more opportunity.
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I actually bought this stock a while ago, however it wouldn't come up in caps. Rode it up and down. Now it is coming back and China is doing well. Also just bought gelyy as sell and it also is not in caps. It is a china care maker and their cars are being sold in the middle east. Cheers,
Cam
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Small Cap China is the way to play the consumer market
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China is going to experience explosive growth. Large corporations are controlled by the government so the best way to play china is with small caps.
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This is currently just about the only easy way for the average US investor to own small-caps in China.
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China is leading the way and small caps should outperform
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Due to Greed and people racing for a DOW 10,000
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ETF reflects China's growing economy, focusing on its small cap companies . . . much better diversified than FXI, and better represents the country's growth potential.
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China is one of the fastest growing economies in the world. historically, small caps have outperformed all other asset classes over time. Combine these two forces into an ETF which tracks small-cap, non-gov't sponsored companies with good fundi's and you have a formula for out-performance. This is a long term, growth and emerging markets play.
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