China's Economy is Booming

Jupiter, FL (PRWEB) April 13, 2008 -- Larry Edelson takes a closer look at China and its economic status. Mr. Edelson examines the continued growth in the Chinese economy and why he remains as bullish as ever on China.

China's stock markets have pulled back almost 45% from their recent highs. And nearly every analyst and talking head in the U.S. and overseas is calling this the end of the Chinese economic miracle.

Yet Mr. Edelson reports from Asia that he is still seeing the same economic vibrancy in China that he saw when he was there five years ago.

Chinese investors are pouring money into new construction, new factories, Macau, Taiwan, new businesses, and joint ventures. Chinese consumers are buying up goods like crazy. Retail sales are soaring. Loan growth at Chinese banks is still on fire. Now, even the rural areas of China are exploding higher with economic growth.

Some recent economic statistics confirm China is still booming ?

-    Bank of China Ltd., the country's third-largest bank, just reported a 31% increase in earnings.

-    Industrial & Commercial Bank of China Ltd. announced that its 2007 full-year profits jumped 65%.

-    China's 14 publicly traded banks bolstered profits by an average of 70%.

-    Sichuan Province reported a 40.1% rise in fiscal revenues in 2007 while Inner Mongolia's soared 43.4%.

-    As a whole, China's western provinces are seeing their GDP grow at 13.9%.

-    China's manufacturing sector saw its purchasing managers index rise to 58.4 in March, extremely bullish on the economy and the highest level since April 2007.

-    February crude oil imports soared a whopping 18.1% to 3.6 million barrels per day; February's diesel imports soared tenfold compared to a year ago.

-    China's retail sales jumped 20.2% in both January and February over the same two months last year, including a huge 33.8% increase in spending on automobiles. Over 500,000 new autos are hitting the streets in China every month.

These statistics show that China's economy is not slowing, but, rather, is in a good position for buying. A good example is the FTSE Xinhua China 25 Exchange Traded Fund (ETF). There has been a sharp decline over the last few months, but the latest surge higher has broken the downtrend.

"If you haven't already bought the iShares FTSE/Xinhua China 25 Index ETF, look at it now. The ETF invests at least 90% of its assets in the securities of the FTSE China 25 index and is a great overall play on China. I also suggest you consider purchasing select individual Chinese blue chips," states Edelson.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1652

About Larry Edelson and Money and Markets

With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.

Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com

Mr. Edelson holds a B.A. degree from Columbia University.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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