Bargain hunting in the Chinese stock rubble
China's stock market is a mess right now. But does that mean that investors should avoid all Chinese stocks? No.
There are hundreds of companies that are headquartered in China but trade on exchanges in the United States.
Many of these companies are industry leaders, including giant telecom (and Apple (AAPL, Tech30) partner) China Mobile (CHL), energy company CNOOC (CEO) and search engine Baidu (BIDU,Tech30).
Several Chinese blue chips are now trading at bargain prices simply because they are based in China.
Peter Pham, managing director of the Asia-oriented asset management firm Phoenix Capital, said that the current bear market in China "could create opportunities for [foreign investors] to increase their position if they remain bullish in the long term about China's economic prospects."
Pham recommends another ETF that shuns stocks in favor of bonds. The PowerShares Chinese Yuan Dim Sum Bond (DSUM) ETF invests in debt that is denominated in China's yuan (or Renminbi) currency. But the debt is issued outside of China.
"The Dim Sum ETF seems to be the best way to go. It's multinational debt in yuan for the long term," Pham said.
http://money.cnn.com/2015/07/07/investing/china-stocks-bargains/index.html
