Hong Kong-based The Asset magazine recently published a list of the most promising Chinese companies. According to their study, these companies have the potential to rise from national/regional leaders into global champions.
The list was compiled from among the 300 companies that are mainly listed on the Hong Kong Stock Exchange based on a survey conducted with investment professionals and research analysts. Later they were ranked in each category based on the following factors:
“(a) earnings/profitability; (b) quality of management; (c) standards of corporate governance; (d) treatment of minority shareholders; and (e) effectiveness of investor relations.”
China’s Most Promising Companies, 2009:
click to enlarge
Source: The Asset
With the Shanghai Composite Index up 83% as of Dec. 7 this year, global investors are on the hunt for the best Chinese stocks. The above list offers a good starting point. Some of the companies on this list are becoming high profile global players by acquiring companies in many parts of the world. Companies in the above winners list trading as ADRs in the US include Bank of China (OTCPK:BACHF), China Life Insurance (NYSE:LFC), China Mobile (NYSE:CHL) and Yingli Green Energy Holding Co. Ltd. (NYSE:YGE). Other Chinese ADRs can be found here.