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Time to Play China 'on Steroids': Stock Pickers

Wednesday, 29 Sep 2010 | 11:33 AM ET

How can investors capitalize on China’s growth? Jamie Cox, managing partner at Harris Financial Group, and Mike Holland, chairman at Holland & Company, shared their best plays.

Early Market Tick
A preview of the day's likely market action, with Jamie Cox, managing partner of Harris Financial Group; Mike Holland, chairman, Holland & Company; and CNBC's Mark Haines & Erin Burnett.

“The indirect approach is the way to go,” Cox told CNBC.

“I like the burgeoning middle class consumer in China and the demographic dividend is where the play is.”

Cox advised investors to look into U.S. multinational companies that have larger exposure to China. (Scroll down to see his full picks.)

In the meantime, Holland suggested taking advantage of the improving relationship between Taiwan and Mainland China.

“In August there was a landmark treaty signed between mainland China and Taiwan, which is opening up cross-strait investing in commerce,” Holland explained.

“The Chinese are welcoming Taiwanese companies coming over and doing things there…you’re going to get China on steroids with Taiwan.”

Holland is in favor of companies that “excel internally” and said health care and retail are especially performing well, and will continue to do so in the next several years.

Recommendations

Cox Favors:

Large-Cap Multinationals: Coca-Cola , Apple , Nike , Coach

Banking and Financial Services: China Life Insurance , HSBC , Standard Chartered

Tourism: Wynn Resorts , Starwood Hotels , Marriott International

Consumer Discretionary: China Mobil

Holland Favors:

China Fund

Taiwan Fund

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Scorecard—What They Said:

  • Cox's Previous Appearance on CNBC (Sept. 16, 2010)
  • Holland's Previous Appearance on CNBC (Sept. 10, 2010)

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More Investment Advice—Read and Decide:

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CNBC Slideshows:

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CNBC Data Pages:

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Disclosures:

No immediate information was available for Cox or Holland.

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Disclaimer

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941
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CHN
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COH
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HSBA
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HOT
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KO
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1628
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MAR
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NKE
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TAIWAN
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WYNN
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AAPL
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