Rutledge: How to Profit From China Growth

China’s economic growth promises opportunity — primarily in companies located elsewhere, Rutledge Capital Chairman John Rutledge said Tuesday on CNBC.

“I think that the rumor that China is dead is greatly exaggerated, and at these prices, I like it,” he said on “Fast Money.”

Rutledge acknowledges that the Chinese economy is slowing “a little.”

(Read More: John Rutledge: China Slowing, Not Collapsing)

“It’s not a crisis,” he said, adding that its GDP is likely to grow at a rate of 7½ to 8 percent.

But investing in the Shanghai Composite Index isn’t necessarily the best way to play it, Rutledge argued.

(Read More: Chinese Growth Set for Decade of Slowdown: Barclays)

“Buy the stocks of companies that sell things to china but are located elsewhere,” he said.

Rutledge owned Rio Tinto, Yum Brands, Caterpillar, BHP Billiton and Freeport-McMoRan.

Trader disclosure: On Sept. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders: Steve Grasso is long MSFT; Steve Grasso is long P; Steve Grasso is long QQQ ; Steve Grasso is long HPQ; Steve Grasso is long PAY; Steve Grasso is long ZNGA; Steve Grasso is long COH; Steve Grasso is long IP; Steve Grasso is long KSS; Steve Grasso is long VLO; Pete Najarian is long AAPL; Pete Najarian is long C; Pete Najarian is long GS calls; Pete Najarian is long JPM calls; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Karen Finerman is long AAPL; Karen Finerman is long AAPL put spreads; Karen Finerman is short AAPL calls; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long MHP; Karen Finerman is long FS; Karen Finerman is long SPY; Karen Finerman is long MDY; Karen Finerman is long KFS; Tim Seymour is long BAC; Tim Seymour is long INTC; Tim Seymour is long SBUX.

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