Here is a wonderful trading idea: buy health & pharmaceutical stocks from China now. Some are already gaining up a lot like Alibaba Health Information Technology Ltd (00241.hk) and others should increase in value in coming months. Life insurance and drugs should sell great in coming weeks, and this will be reflected in stock prices. There are few interesting picks that I gathered below which should gain a lot of value in coming months. Chinese stock market is second only to US market in total capitalization and there are plenty of opportunities for any investor. FTSE China A50 rivals SPX500 in terms of returns (maybe not counting dip in recent days).
5 Chinese healthcare stocks to buy on virus fears
Alibaba Health Information Technology Ltd (00241.hk) – Company belonging to Alibaba gropu, making mostly health apps for smarpthones, like the one warning about possible virus outbreak in your vicinity, and also selling health services, insurance, vaccinations, aestethic medicine (big thing in China) through Doctor2U app. 23.1% yearly gains.
Chinese women spend more than double the amount on plastic surgery each month compared to other women around the world. It’s the world biggest market for facejobs (if only) and according to Allergan (another great stock BTW), it will grow even more to $70 billion by 2022. Don’t even bother explaining western terms like “gender equality: from across the rice fields. They won’t get it and Guo have has need for such things, even if it’s land of hammer and sickle. Chinese are like radish – red on the outside and white inside.
CSPC Pharmaceutical Group Ltd (1093.hk) – CSPC is one of the biggest drugstore company in China, selling drugs in chainstores like China Pharma, Weisheng and more. They also offer traditional Chinese medicine, like you know, tiger balm or rhinoceros horn or bat soup. This stock should sell like hotcake.
Traditional Chinese medicinal stock (not equity).
Wuxi Biologics Cayman Inc (2269.hk) – One of the biggest Chinese companies developing drugs, with 224 research projects underway. It also acts as an external agent for outsourcing drug research. Yes, you can now outsource research, just tell them what you need to discover, pay maobucks, and wait for the results. They will surely get some big grants from the state (it’s already mostly state run company anyway) that will influence profitability and stock price. 1-yr gains of 28.77%, so it holds nicely.
China Life Insurance Co Ltd (2628.hk) – Largest national life insurance company (70% state-owned enterprise). Life & health insurance should be another hot seller in coming days. I’d pick this one as it’s far from ATH and thus has room to grow. 2nd largest company state insurer, also state-controlled, is People’s Insurance Group of China Co Ltd (1339.hk).
Very good entry point is forming now.
Bonus: Buy Kweichow Moutai Co Ltd (600519)! Moutai is world’s biggets booze manufacturer, and incidentally baijiu brewed from sorghum and rice is also considered to have medicinal properties. It helps Chinese get through their hardships, like reading People’s Daily while commuting to work. Being 53% strong (depends on kind, I’ve seen various), it has to kill the zoonomic germ. Kweichow Moutai has huge market cap, and offered decent (for China) dividend yield of 1.38% last year. It is also one of the two best things you can get in China.
As you can see, there are plenty of opportunities to make money in this market and I always recommend diversifying a bit from boring Nasdaq. Don’t forget that every single Chinese company listed in Shanghai or on HKEX is even state owned or has ties to the Party, so it can be propped up by credit, that will never be repaid. Be aware that Chinese like to cook their books, but until party is going on, it’s mostly harmless and won’t result in any kind of market meltdown. Sun Tzu style business antics are part of Chinese culture, honesty and candor aren’t highly valued in the Guo. Anyway, investing there is fun and with a bit of luck (and research) you can hit some real gems.
Know more interesting Chinese health stocks to pick? Let me know in the comments below!