The Chinese tech stock sector is one of the few that seemed unfazed by inflationary fears in 2010. This year, too, looks promising for Chinese tech stocks, particularly on the heels of an enthusiastic 150-page dossier Credit Suisse (NYSE:CS) produced in an attempt to predict where the Chinese economy will be in 2015.
Across all sectors in China, Credit Suisse sees e-commerce out-performing all other sectors over the next four years. Indeed, the company expects China’s e-commerce market to more than quadruple to $311 billion by 2015, Forbes reports. That would make the Chinese e-commerce market as big as the U.S. e-commerce market.
The biggest beneficiary of that growth will be Taobao, an e-commerce site that’s part of the privately held Jack Ma empire (aka as the Alibaba Group). Despite the fact that shares in Taobao are as-yet unlisted, the company still tops my list of the top three best China tech stocks for 2011:
1) Taobao.com. Alibaba’s Taobao CFO told Reuters last week that the company has “no IPO plans for now,” but I wouldn’t be surprised if they do decide to IPO by the end of the year. Taobao currently controls 75 percent of all e-commerce transactions in China, according to 247WallSt.com, and the company’s serious about expanding its influence. Along with Alibaba, Taobao’s dumping $3 billion to $4.5 billion into a warehouse network that will make shipping throughout the country more efficient. If shares in Taobao or the Alibaba Group don’t IPO this year, there’s still an interesting play on the company: Yahoo! Inc. (NASDAQ:YHOO) owns a 39 percent stake in Alibaba.
2) E-Commerce China Dangdang, Inc. (NYSE:DANG). Dangdang is the smallest of the four major e-commerce sites in China (behind Taobao, Tencent’s Paipai and 360buy.com). The company controls just 0.7 percent of China’s online transactions, but their recent IPO in the U.S. should give them plenty of ammo to target a larger market share. Dangdang planned to use $25 million to $30.0 million from its IPO to broaden the company’s product categories; $25 million to $30.0 million to expand fulfillment capabilities; and $25.0 million to $30.0 million to enhance its technology infrastructure. The company appears to be closely following Amazon.com’s growth in the U.S. After starting as a bookseller, they’re now expanding into other higher-margin product areas.
3) SINA Corporation (USA) (NASDAQ:SINA). No stranger to the market, SINA Corporation had its IPO more than a decade ago. After tumbling to $1.56 per share during depths of the Dotcom bust, shares have climbed 4,900 percent to $78 per share. The Web portal company had a great 2010, returning more than 100 percent as the company has shown a consistent ability to innovate and expand its offerings. SINA launched a Twitter-like microblog site, Sina Weibo, in 2009 that’s helped www.sina.com.cn grow to be the fourth most-visited Web site in China, according to Alexa.com. The company also offers streaming video, online games, email services, Web search and news. Best of all, SINA’s EPS rose more than 45 percent during each of the first three quarters in 2010.
I have a web site where I research stocks under five dollars. I have many years of experience with these type of stocks. I would like to recommend a chinese stock that I think is attractive here the company Sutor Technology Group symbol [SUTR] Limited engages in the manufacture and sale of steel products primarily in the Peoples Republic of China. It offers hot-dip galvanized steel, prepainted galvanized steel, acid pickled steel, and cold-rolled steel products. The company sells its products to customers who operate primarily in the solar energy, appliances, automobile, construction, infrastructure, medical equipment, and water resource industries. It also exports its products to Europe, the Middle East, South America, the United States, southeast Asia, and Hong Kong. The company is based in Changshu City, China. the stock trades around 1.90 cents a share. I think the stock could get to 10.00 dollars a share over the next five years.
james i looked into SUTR it has lost 86 % of its worth since it was listed