China Growth Stocks

[rru2s]

SeekingAlpha, Leeb on Underestimating China: a good read.

http://seekingalpha.com/article/243842-beware-of-underestimating-china?source=email_watchlist

"China has been first to recognize the danger of resource shortages down the road. Many of China's elite have backgrounds in engineering and science. Peak oil and Peak Coal have been seriously discussed by Chinese scientists in academic journals, which government leaders actually read. China understands its need to segue into alternative energy ... world's largest production of wind and solar energy ... it will become number one in nuclear energy as well. China's emphasis on growing real industries is one reason it survived the 2008 financial crisis better than the West."

"before the global financial crisis took hold Chinese interest rates were at 7.8%. The recent move back to 5.8% is hardly evidence the Chinese government is in a panic over a runaway economy ... the only segment of the inflation figures that has looked “out-of-control” in recent months has been food prices – particularly vegetables. Prices of non-food items are rising at an annual rate of only 2%."

"“What the commodity markets are telling us is that we’re living in a finite world, in which the rapid growth of emerging economies is placing pressure on limited supplies of raw materials, pushing up their prices.”
In other words, commodities are in a real, secular bull market, not a bubble."