China Stocks with Nice (Olympic) Rings
Opening ceremonies are less than a week away, but has the Olympic punch gone out of China's economy? Jim Oberweis runs the Oberweis China Opportunities Fund, and he says there's still lots of potential profit for the world's investors in Chinese companies.
"It's cool to be Chinese right now," Oberweis told CNBC. "You're seeing it in movies; we're seeing it within the Chinese marketplace. People are really proud right now to be Chinese. We're seeing very strong numbers coming out of domestic consumption plays in China."
So where should that point the investor?
"The place to be focusing on are companies that are benefiting from the growing purchase power of the [Chinese] middle class," he said.
His top pick is VisionChina Media.
"it operates a number of flat-panel TV screens on buses throughout China," he explained. "A company like that is likely to attract increasing advertising dollars, and they're also going to benefit...as international advertisers become accustomed to that medium for advertising in China."
He also likes Sohu.com.
"Sohu's one of the top Internet portals in China," he said. "They have the exclusive rights to distribute the [Olympic] broadcasts online in China."
Those two stocks trade primarily in the United States; Oberweis also likes some companies whose ADRs trade in the U.S.: Li Ning and Anta.
"These two names are the top sports-apparel brands within the domestic China marketplace," he said.
Disclosure information for Jim Oberweis was not immediately available.