|Bid||58.48 x 2200|
|Ask||59.66 x 800|
|Day's Range||58.97 - 59.35|
|52 Week Range||50.45 - 65.25|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.48|
|Expense Ratio (net)||0.59%|
A recent statistic from GlobalData said that the affluent population in China, which includes both mass affluents and high-net-worth individuals, is expected to grow by 41% from 40.13 million to 56.67 million. Chinese stocks will benefit from this ongoing surge in the number of wealthy people in the country. According to GlobalData, the "mass affluent" includes anyone with liquid assets between $50,000 and $1 million, while the "high-net-worth individual" is anyone with liquid assets of more than $1 million. China is home to the third-highest number of affluent people behind only the U.S. and Japan. "This growth will be driven by rising levels of urbanization, infrastructure expansion, and high investment inflows in the country. Going forward, the number of affluent Chinese individuals is forecast to grow at a similar rate, reflecting the country's positive economic growth," stated Shivani Gupta, Wealth Analyst at GlobalData. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Best Tech Stocks to Buy Right Now So, which Chinese stocks will win between now and 2022? A likely place to start for stocks to buy are those companies focused on retail, both online and off. Not all of them will be based in China to benefit from the surge in the affluent population. Here are what I believe to be the 10 stocks to buy to ride this trend. Stocks to Buy: New Oriental Education (EDU)Source: Shutterstock New Oriental Education (NYSE:EDU) is the largest provider of private educational services in China. Those with the means to provide their children with additional schooling and tutoring are going to do so. EDU stock will benefit from this demand. On July 23, New Oriental announced its fourth-quarter results. They were extremely healthy. On the top line, net revenue increased by 20.2% compared to last year to $842.9 million, with operating income up 36.0% to $77.0 million. In fiscal 2019, New Oriental saw sales increase 26.5% to $3.1 billion, with operating income rising 16.2% to $305.5 million. During the fourth quarter, the company saw total student enrollments in academic subjects tutoring and test preparation courses increase by 33.9% to 2.8 million people, with the number of schools and learning centers increased by 152 to 1,233. On Aug. 29, EDU stock hit a 52-week high of $112.49. Its stock is up 98.4% year to date. New Oriental continues to be one of my favorite Chinese stocks. Alibaba (BABA)Source: Nopparat Khokthong / Shutterstock.com As Chinese stocks go, Alibaba (NYSE:BABA) has the highest potential to do big things outside its domestic market. While the Chinese market is massive, it is the market share that it can capture outside of China that will dictate how big it becomes. The e-commerce dynamo recently had a bit of a setback. It had planned to list its shares in Hong Kong by doing a secondary offering to raise a little cash and more importantly, bring its stock a little closer to home. Unfortunately, with all the protests going on over there, it decided to delay its Hong Kong listing until the fall or later. As I wrote on Aug. 26, it's not a big deal because of the company's firing on all cylinders at the moment. Its e-commerce and cloud businesses had revenue growth of 40% and 66% year over year in the latest quarter. It finished the quarter with $30.7 billion in cash. Alibaba stock is up 24% year to date. Nio (NIO)Source: THINK A / Shutterstock.com For Nio's (NYSE:NIO) sake, the affluent in China better be buying both its ES8 (7-seater) and ES6 (5-seater) over the next 12-24 months, because if they're not willing to fork over the dough for the tech-heavy SUV, it's unlikely that the middle class will be ready to spend the money. Also, the Chinese government is winding down the EV and plug-in hybrid subsidies. By the end of 2020, they should be gone. Adding to Nio's troubles, Tesla (NASDAQ:TSLA) is expected to begin manufacturing the Model 3 in China by the end of 2019. Those Tesla's will come with lower prices due to the lack of a tariff on the vehicles. I've been very tough on Nio in the past year because it loses more money than it generates in sales. That's not a sustainable business model. However, it's hard to deny that its vehicles are attractive. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off At less than $3, NIO stock is a good buy, but for aggressive investors only. Ctrip.com (CTRP)The one thing I know about the wealthy is that they love to travel.Carlyle Group (NASDAQ:CG) Co-Chairman David Rubenstein recently had an interesting story to share with Ctrip.com (NASDAQ:CTRP) CEO Jane Sun while speaking together at the 2019 Aspen Action Forum in Aspen, Colorado. Rubenstein mentioned that he had invested in the Chinese travel service provider back in 2003 when it was valued at $100 million. Rubenstein sold his stock for a 450% profit."At the time, we thought how brilliant are we? The company is today worth USD $21 billion. I guess I sold too soon, right?" Rubenstein told the Aspen audience. "I'm sure that the travel industry will continue to grow, and Ctrip's will capitalize on those opportunities," Sun said. "And I hope we can live up to the expectations of promoting the global economy and global peace."Although geopolitical issues are affecting leisure and corporate travel in China at the moment, the long-term prognosis continues to be good as the affluent look to do more air travel than in the past. China Life Insurance (LFC)Source: GotCredit via FlickrChina Life Insurance (NYSE:LFC) is one of the largest life insurance companies in China. It has more than 285 million life insurance policies, annuities, and other financial contracts in place. It is also one of the country's largest asset managers due to its controlling stake in China Life Asset Management Co. Ltd. The insurer reported its latest quarterly report on Aug. 22. Its net profit was 129% higher year over year to $5.3 billion. Its total premiums increased by 5% during the quarter and its stock is up 12.8% year to date through Aug. 28.In November, I suggested that LFC stock was one Chinese stock I thought was worth buying given it had lost 31% with one month left in 2018. Since then it's up 14%. * 7 Stocks to Buy Down 10% in the Past Week 68%-owned by the Chinese government, some investors might not feel all that comfortable about their investment. I'm not one of them. It is the Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) of China. Autohome (ATHM)Source: Shutterstock As I mentioned in the section on Nio, the affluent are big car buyers. Autohome (NYSE:ATHM) provides consumers in China with the information and services required to successfully buy a car, including financing, insurance, used car sales, etc. The company announced its second-quarter results Aug. 7 and they were very healthy. On the top line, Autohome's revenue increased by 23.5% to $323.2 million. On the bottom line, net income increased by 14.9% to $119.7 million. That's a very impressive net margin of 37%. "In the second quarter, we maintained the solid growth momentum in our core business. Our new initiatives once again picked up steam and gained positive market recognition," stated CFO Jun Zou.On Aug. 18, Autohome held the world's first virtual reality auto show with more than 80 auto brands and over 2,400 dealers taking part. It plans to do more of this type of activity in the future to increase the exposure of the auto industry in China. If Autohome keeps this up, you can be sure the profits will continue to roll in. Noah Holdings (NOAH)If there's a Chinese stock that confuses me, it's got to be Noah Holdings (NYSE:NOAH). The Shanghai-based wealth manager aims to service clients with a net worth of a least $140,000. I've recommended it on several occasions in the past because I felt the growing middle class in China, not to mention the affluent class, would provide it with plenty of business. However, despite having more than $25 billion in assets under management and a growing online presence, its stock has lost half its value since reaching a $4 billion market cap in May 2018. As the Financial Times recently reported, the company distributed products involving supply-chain financing from a third party to its clients that turned out to be fraudulent. Noah reported Q2 2019 earnings on Aug. 28. In its conference call, NOAH openly dealt with the issue and feels the incident will eventually be in the rearview mirror. * 10 Stocks to Buy for September Do your due diligence on Noah, but this latest issue won't change my opinion about the company. I still believe it's got an excellent opportunity to win over a big chunk of the Chinese wealth management business. LVMH (LVMH)Source: Shutterstock If there's a company to benefit from the increase in affluent people in China, it would have to be LVMH (OTCMKTS:LVMUY), whose Louis Vuitton bags, Tag Heuer watches, and Moet & Chandon champagne are fashionable in the country of 1.4 billion people. In June, Vuitton Chief Executive Michael Burke said that Louis Vuitton is experiencing "unheard of growth rates" in China. The Chinese are buying more handbags and watches domestically than they are while traveling outside the country. One of the advantages for LVMH is that the Chinese have lowered tariffs from European products to encourage consumers to buy in China instead of overseas, and then resell them once back on the mainland. Regardless of what's happening with the U.S.-China trade war, LVMH CEO and founder Bernard Arnault continues to build a retail conglomerate like no other. Arnault is currently the world's third-richest person with a net worth of $96.0 billion, $27.4 billion higher in 2019, vaulting him $16 billion ahead of Warren Buffett. China will continue to be good for both LVMH and Arnault. Manulife Financial (MFC)I thought I would throw in a Canadian company that's doing well in China. Manulife Financial (NYSE:MFC) is primarily a life insurance company. It owns John Hancock in the U.S. and has a large wealth and asset management business.In the second quarter ended June 30, Manulife had C$1.45 billion in core earnings, C$471 million from its Asian business, which represents 32% of its overall earnings. By contrast, its Canadian insurance business accounts for 21% of its core earnings while the U.S. is responsible for 30% of its core earnings. Its global wealth and asset management business accounted for the remaining 17%. CEO Roy Gori, who ran the company's Asian business before taking the top job, said about the second quarter:"We delivered solid core earnings and net income of $1.5 billion in the quarter, with double-digit core earnings growth in Asia," Gori stated. "We have also taken steps to further strengthen Manulife's long-term growth opportunity in Asia, including entering into an asset management joint venture agreement in India." * 10 Marijuana Stocks That Could See 100% Gains, If Not More Although the company's Asian head office is in Hong Kong, it also has offices in Shanghai and Beijing. The company's first insurance policy in Asia was sold in Shanghai in 1897. iShares MSCI China (MCHI)Source: Shutterstock One of the quickest and easiest ways to benefit from the surge in affluent people in China is to buy an ETF like the iShares MSCI China ETF (NYSEARCA:MCHI), which provides exposure to a portfolio of mid-sized and large-sized companies based in China. The ETF tracks the performance of the MSCI China Index. It has a total of 462 holdings with a significant number of Chinese financial stocks that aren't listed in the U.S. Given wealthy people generally are in greater need of financial services, owning this ETF would help you ride the affluent trend. It charges 0.58% annually, which is reasonable given that many of the stocks can't be bought on a U.S. exchange. The ETFs top 10 holdings account for 48% of its $3.5 billion in total assets. The top three sectors: consumer cyclical, financial services, and technology, account for 67% of its total holdings. The average market cap is $67.3 billion. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Best Tech Stocks to Buy Right Now * 10 Mid-Cap Stocks to Buy * 8 Precious Metals Stocks to Mine For The post 10 Stocks to Buy to Ride Chinaas Emerging Wealth appeared first on InvestorPlace.
The trade talks restarted after China’s top trade negotiator, Vice Premier Liu He, publicly called to de-escalate the tensions on Monday.
As fears over the global economy and tar war continue to contribute to market volatility, investors have yanked billions from ETFs that track China’s stock market. Over the past month, investors pulled ...
DEEP DIVE Billionaire investor Ray Dalio last week reminded investors what’s important about China: Its rapid and sustained economic growth is so important that it’s risky not to invest there. He also compared the scope of China’s rise to that of the British Empire and to the industrial revolution.
It has been a tough week recently for China-based stocks. And NIO (NYSE:NIO), a competitor to U.S.-based automaker Tesla (NASDAQ:TSLA), has undoubtedly been hard hit. After soaring past $10 earlier this year, Nio stock has since slumped to $3.17, in line with the bearish run on all China-based stocks.Source: Shutterstock In fact, Chinese stocks, as represented by the iShares MSCI China ETF (NASDAQ:MCHI) recently closed at $55 and the exchange-traded fund seems headed to its 52-week low of $50, after having topped $60 just last month.So should Nio stock investors be worried?InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe market has hammered all stocks related to China out of concerns of an upcoming trade war and accusations that China has manipulated its currency. No stock has been spared from the selloff.Alibaba (NYSE:BABA) is trading at $162, after having recovered from a steep fall to $152, yet it's still well off its 52-week high of $195. Baidu (NASDAQ:BIDU), now trading around $99, is just at its 52-week low after plummeting from $234 late last year.However, trade war or not, NIO will likely be a survivor and the headline damage could present real value if the Nio stock price gets much cheaper. Three Reasons NIO Stock Is a Long-Term Strategic BuyThe Trade War Will Most Heavily Hit Exporters to the U.S. … Not NIOThe phrase trade war with China is undoubtedly a frightening concept. Understandably, investors will dump any China-based stock. Yet, this is far from any outright war, but rather a readjustment of U.S. import tariffs that will hit China exporters. However, the bulk of NIO's market is in mainland China, one of the world's largest markets for electric vehicles (EV).No doubt, the trade war will weigh heavily on stock prices, and China will be hit. But the Chinese economy will likely remain rock solid. Last Thursday, China reported that its "exports rose 3.3% over a year earlier … rebounding from June's 1.3% contraction." Meanwhile, "[i]mports shrank 5.6% … an improvement over the previous month's 7.3% decline."The figures were mostly better than expected. In short, the Chinese export juggernaut will continue to steam forward. * 10 Medical Marijuana Stocks to Cure Your Portfolio Moreover, threats of a Chinese yuan devaluation and the global economic impact have already hit the market and are well baked into current prices. In most bad news related selloffs, stocks get hit hard at first and are usually oversold. Savvy value seeking investors then step in and bottom-fish for bargains. Similarly, NIO stock, after the sell off, may have been oversold by the market on the basis of an absolute worst case scenario.China Yuan Devaluation Could HelpCurrency devaluation is a two-edged sword. It will make Chinese exports cheaper and more competitive in the U.S. market. At the same time, U.S. exporters to China will have to hike their prices, thus cutting U.S. export sales. However, a devalued Chinese yuan will actually protect domestic Chinese manufacturers, such as NIO, in their home market.Tom Elliott, international investment strategist at Devere Group, a U.K.-based financial advisory firm, said a weaker yuan would increase cost-cutting pressure around the world's manufacturing industries:"Chinese goods, always competitive on price, will be even more competitive … This is therefore bad news for manufacturers outside of China, at a time when global manufacturing is struggling with weakening demand growth and the negative impact of the U.S.-China trade dispute on their supply lines and profits."Translation: A weaker yuan will hurt U.S.-based and non-Chinese manufactures the most. NIO, with 100% of operations inside China, is largely safe. So in the longer run, the Nio stock price might not be in as much trouble as some might think.An Out-of-the-Money, Long-Dated Option On a Hot MarketAt a rock bottom price below $3, NIO stock will be so undervalued as it will be akin to buying an out-of-the-money, long-dated call option. Such an option has zero intrinsic value, but potentially a huge upside if the underlying asset significantly appreciates. The EV market in China is just beginning to take off. EV sales will skyrocket in the next five years, mainly because it is much cheaper to operate an EV than a traditional gasoline-powered vehicle and there's a drive by the Chinese government to cut pollution.NIO commands the size, capacity, market share and evolving product line to make it ideally positioned to leverage the incredible growth of the Chinese EV market. Already, despite its ups and downs, as well as a recently disappointing earnings call, top-line revenues for NIO have increased over 400% from one year ago. * 7 S&P 500 Dividend Stocks to Buy With Yields of at Least 3% The NIO brand was recently ranked highest-quality in J.D. Power's inaugural China New Energy Vehicle Experience Index Study. NIO beat out several competitors, including second-ranked BMW (OTCMKTS:BMWYY). Two Chinese automakers -- Chery Automobiles' Chery and GAC Motors' Trumpchi, both state-owned -- tied for third place in the rankings.There will certainly be some tough weeks ahead for NIO stock as political rhetoric about a trade war with China continues to hammer the market. NIO will also see challenges as the Chinese government reduces subsidies on EV sales.But if Nio stock falls below the crucial $3 level, it will present an excellent opportunity for a long-term hold.As of this writing, Theodore Kim did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Sell Right Now * 7 Stocks Under $7 to Invest in Now * 7 Marijuana Stocks With Critical Levels to Watch The post 3 Reasons Nio Stock Will Be a Trade War Survivor appeared first on InvestorPlace.
Hawkish Fed outlook and renewed trade tensions shook the market to start August. These inverse ETF areas could be on a tear in the near term.
Over the past year, Nio (NYSE:NIO) has become a closely followed stock among China's expanding luxury automotive shares. NIO stock went public in the U.S. as an American Depositary Receipt (ADR) in September 2018. At the time, it was touted as the Tesla (NASDAQ:TSLA) of China.Source: Shutterstock Actual fundamental comparison of the two car makers is not the focus of the article today. Yet, our readers may already know that the share prices of both companies have suffered a similar downtrend in 2019. Year-to-date, Nio, like Tesla, has not rewarded its shareholders and the stock is more that 45%. With the decline in price, many analysts have also become increasing concerned about Nio's prospects.Let's look at Nio stock's fundamentals so that long-term investors may make an informed decision as to whether August may offer a good entry point into NIO shares, which are currently trading around $3.30.InvestorPlace - Stock Market News, Stock Advice & Trading Tips How Nio Stock Makes MoneyThe Shanghai, China-based company develops, manufactures, and sells premium semi-autonomous electric vehicles (EVs) to luxury buyers in China. Nio is a young company that was founded in 2014. It currently has offices in China as well as the U.S., the U.K. and Germany.The initial backers of Nio included Baidu (NASDAQ:BIDU), Tencent (OTCMKTS:TCEHY) as well as Singapore's sovereign wealth fund, Temasek Holdings.The group first focused on research and development (R&D) activities. Then it went into mass manufacturing in March 2017. Its first volume-manufactured seven-seater SUV vehicle -- the ES8 -- was first sold in China in June 2018, with buyers comparing it to Tesla's Model X.At present, Nio sells exclusively in China. In addition to the ES8, the company has two other vehicles: the EP9 (two-seater sports car) and the ES6 (five-passenger SUV). * 7 Oversold Stocks To Buy Right Now Nio cars are equipped with a standalone artificial intelligence (AI) system called the NOMI. The company also offers various car charging and power solutions.Management has been working hard to make the Nio brand more than a car manufacturer, but rather a life-style concept. For example, its showrooms also feature members-only areas, Nio Houses, that serve as upscale social clubs. Nio aims to appeal to the changing demographics of the Chinese car buyers who are more tech-savvy and want more from the dealership experience.In addition, the group uses social media to actively engage with current and prospective customers. It also has an app with over 800,000 users as well as a virtual currency. Nio Q1 Results were far from ImpressiveNio failed to impress Wall Street when the company reported first-quarter 2019 results on May 28. The manufacturer's Q1 sales of $228.8 million halved from the Q4, slipping 54.6% sequentially. Its gross margin was -13.4%, compared with 0.4% in Q4 2018.Management's May 2019 monthly delivery update early last month also drove home the concerns for what the team called "the challenging macroeconomic and Chinese auto market backdrop."Source: McKinsey & CompanyFurthermore, Nio has recently had to recall 5,000 ES8 SUVs due to battery fires.And the group's near $600 million quarterly cash burn is not likely to decrease in the next quarter. The issue of cash is one of the most important questions haunting Nio's fundamental story. Many investors may also regard Nio stock's debt-to-equity ratio of about 3.7 as rather high.Although the car company is going through cash at an alarming rate, Nio posted a smaller-than-expected Q1 loss. Its net loss stood at $373 million versus what analysts had expected to be $472 million.On a final note that may excite investors, the ES6, which in effect is a smaller and cheaper version of the ES8, has begun delivery several weeks ago. Could this new vehicle also provide a much-needed sales spark for Nio in the coming months? Bottom Line on Nio StockOn Sept. 12, 2018, Nio stock went public at an opening price of $6. After reaching an all-time high of $13.80 within two days of its listing, the Nio stock price has been on the decline.I am in the camp that Nio stock's price weakness since the IPO is a clear reflection of investor sentiment and major fundamental worries, especially regarding a young company with unproven management completing a rather premature exchange listing in a third country, i.e., the U.S., where it sells no cars. * 7 Stocks to Buy With Over 20% Upside From Current Levels However, I do not expect that the major investors, such as Tencent, as well as the Chinese government will allow the company to go bust.Daily volatility of Nio stock is high. Any headline news regarding the U.S.-China trade wars as well as sales or other fundamental metrics from Tesla will likely affect the short-term price in Nio shares, too. (Yesterday's 5.5% drop is a good case in point …)In other words what is good for China or Tesla may also be good for Nio and vice versa.Potential investors may want to wait for the release of Nio's next quarterly results, expected at the end of August. As well, those who buy into Nio shares should be ready to hold them for several years.Current NIO investors may consider hedging their stock purchases with, for example, Nov. 15 ATM covered calls.Investors who are interested in buying into Chinese or clean energy companies, but do not want to commit all their capital to a single stock such as Nio may also consider investing in various exchange-traded funds (ETFs) with NIO as a holding, including iShares MSCI China ETF (NASDAQ:MCHI), Global X MSCI China Consumer Discretionary ETF (NYSEARCA:CHIQ) or Invesco WilderHill Clean Energy ETF (NYSEARCA:PBW).As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks Under $10 * 8 Monthly Dividend Stocks to Buy for Consistent Income * 7 Disruptive Biotech Stocks to Buy for 2025 The post Should Investors Include Nio Stock in their Back-to-School Shopping? appeared first on InvestorPlace.
We take a look at some Chinese ETFs in the wake of increasing number of U.S. manufacturers relocating their production units to other Southeast Asian countries.
Despite the lingering uncertain outlook with trade disputes not yet settled, Chinese market and country-specific ETFs still offer opportunities for investors. “Regardless of what ultimately happens with the China trade tensions, there is a robustness to China that doesn’t exist anywhere else in the emerging markets,” Lewis Kaufman, a portfolio manager at Artisan Partners, the Artisan Developing World (ARTYX), told CNBC. It’s very difficult to access domestic demand through the vehicles we would wish to use in so many emerging-market countries,” Kaufman add.
Shares of Nio Inc. shot up 6.8% on heavy volume in premarket trading Wednesday, which puts them on track to match its longest win streak since going public 10 months ago, after the China-based electric car maker reported second-quarter deliveries that beat expectations. Trading volume topped 1.5 million shares, enough to make the stock the most actively traded ahead of the open. The company reported earlier second-quarter deliveries of 3,553 vehicles, above its previous guidance range of 2,800 to 3,200. Nio's shares have gained 44.7% over the previous six sessions, the best 6-day performance since it started trading on Sept. 12, 2018. A positive close Wednesday would mark the 7th-straight gain, which would match the record win streak over the 7-day stretch ending Feb. 1, in which the stock rose 20.6%. The stock has dropped 42.1% year to date through Tuesday, while the iShares MSCI China ETF has climbed 11.7% and the S&P 500 has gained 18.9%.