Dear Fellow Investor,
Last week, we talked about my recent visit to the successful medical device manufacturer that we own in our China Strategy portfolio. The stock has nearly doubled for my subscribers in a short amount of time—it's up more than 95% in just nine months—and I want you to participate in the wealth that this company is providing.
As I mentioned last week, this company is well-positioned to profit handsomely from three major trends that will drive its performance over the coming year. If you sign up for a risk-free subscription to China Strategy, I'll send you my just-written special report about this winner. I can only make this offer available for one week, so don't delay! Click here to join us at China Strategy right away and get this free special report with my specific buy advice on how to profit from this big gainer.
The headquarters of our medical equipment company is located in the Chinese city of Shenzhen. Shenzhen is an interesting place, and its story shows just how far China's economy has come in the past 25 years. Today I want to share this story with you.
The Ultimate Boomtown
It was hot and humid outside of the Shangri La Hotel in Shenzhen two weeks ago. The smog-choked air made every breath difficult. Crowds of migrant workers filled the sidewalks while cars zipped up and down the streets urgently.
My kids and I were on our way to an Italian restaurant for dinner. After one full week of eating nothing but Chinese food, my son Sean wanted some good old-fashioned spaghetti carbonara, so we set out to find an obscure little Italian restaurant hidden near our hotel.
Despite the unpleasant conditions outside, there was a chaotic energy in the air. I wasn't the only one who could feel it—even the kids sensed the elevated energy buzzing around everywhere. All of the action, growth and ambition were easy to see. It's obvious that the people of Shenzhen want to get rich and are willing to do whatever it takes to achieve that goal.
If capitalism has a new frontier—a Wild West in the far East—Shenzhen would be it. Over the past 20 years, the former sleepy fishing village across the river from Hong Kong has became the greatest boomtown ever known to mankind. The city had less than 100,000 people about 25 years ago, but today it has a population close to 7 million, or nearly twice that of Chicago.
The Skyline of Shenzhen
Shenzhen got its big break in the early 1990s when China's former leader, Deng Xiao-ping, made a historic visit to the then-fishing village and designated the city as a special economic zone. The special economic zone status of Shenzhen gave the city's investors special tax breaks, and soon foreign investors from Hong Kong and Taiwan flocked to the zone in droves. Shenzhen has become an important economic center for China, and today it boasts the highest per capita GDP of all major cities in the country.
Our Trip to Shenzhen
Our China Investing Tour Group had a very busy schedule lined up for our stay in Shenzhen. Not only did we go and see the headquarters of our medical device maker, but we made two other visits as well.
We made a trip to one of China's three major stock exchanges, the Shenzhen Stock Exchange. All of us were very impressed by the welcome that we received—exchange workers literally rolled out a red carpet for our arrival. They also gave each of us a small toy as a souvenir. We toured the building and learned about the daily operations of the exchange, which has been on fire this year.
The Shenzhen Stock Exchange's headquarters
John gave up a cushy job at ING and took a pay cut to join China Merchant Securities. A few years ago, it was almost unthinkable for someone to leave a major international financial institution to work for a local Mainland Chinese brokerage house. But today, with China's economic emergence and massive stock market boom, senior managers at top Chinese brokerage firms, like John, now have unprecedented opportunities to build wealth.
John Ho addressing our tour group at
China Merchant Securities
We learned a lot from John's presentation, such as the current high earnings growth rate of many A-share companies, the incredible run-up in Chinese brokerage stocks, and John's outlook on the global economy.
As you can see, Shenzhen is a booming city that's home to many growth stories, like our rapidly expanding medical company, one of China's major stock exchanges and one of the country's leading brokerage firms.
I plan to tell my China Strategy subscribers all of the details about my visit to Shenzhen (and other Chinese cities!) in upcoming issues of our monthly newsletter. Be among the first to read about my trip—and what I learned from it—by subscribing to China Strategy today. If you sign up this week, I'll even throw in a FREE special report about our profitable health care equipment company. Click here for details.
My recent trip to China confirmed what I already knew—China is the greatest investment opportunity of the century, and the profit potential for investors who truly understand what's happening there is staggering. I'm very excited by what I saw, and I'm looking forward to continuing to profit from the China Miracle.
