Despite the negative climate towards investing in U.S.-listed China stocks, I will share with you a list of Chinese sectors/stocks that I believe could benefit from the Japan earthquake.
Japan's reconstruction activity and supply cut from Japan's steel exports (44% of China's steel was important from Japan) could drive growth here.
A company that could be an interesting play is Ossen Innovation (NASDAQ:OSN). This steel company manufactures and sells a wide variety of plain surface pre-stressed steel materials and rare earth coated and zinc coated pre-stressed steel materials. The company's products are mainly used in the construction of bridges, as well as in highways and other infrastructure projects. Ossen has two manufacturing facilities located in Maanshan, Anhui Province, and Jiujiang, Jiangxi Province, with a combined annual production capacity of 140,000 tons per year.
Annual cement consumption in Japan is 44 million tons. Assuming the reconstruction activities double demand, and half of the supply comes from China, it will only increase demand by less than 1% of China's total cement demand.
China Shuangji Cement (OTC:CSGJ) - the company through its affiliates and controlled entities, is a leading producer of high-quality Portland cement in Shandong and Hainan Provinces. Its processed cement products are primarily purchased by contractors for the construction of buildings, roads, and other infrastructure projects.
Due to disruption of power in Japan, big regional exporters of coal could be benefited. In 2010, 36% of China's national coal exports went to Japan.
Puda Coal (OTC:PUDA) - the company through its subsidiaries, supplies premium high grade metallurgical coking coal used to produce coke for steel manufacturing in China. The company currently possesses 3.5 million metric tons of annual coking coal capacity. The company is in the process of adding coal mining operations to its business, as an acquirer and consolidator and acquirer of coal mines in Shanxi Province.
Wind Power Sector
Could benefit due to the delay of nuclear energy program in China.
China Wind Systems (CWS) - the company is a profitable, rapidly growing supplier of precision forged components primarily to the wind industry in China - the world's leading wind-power market. The company also supplies forged and other components and fabricated products to other industries.
Could benefited due to the shift away from nuclear energy.
China Natural Gas (OTC:CHNG) - the company transports and sells natural gas to vehicular fueling terminals, as well as commercial, industrial and residential customers through its distribution networks in China's Shaanxi and Henan Provinces.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.