Top 10 China Stocks To Watch For 2014

The emerging markets that we've come to know so well, the BRIC countries, are finally coming to an end -- at least, as emerging markets. 

China and Brazil are moving away from having industrial economies and are becoming ever more consumption-driven. India continues to suffer from a depreciating rupee and a poor economy, and Russia remains an unpredictable political quagmire.  

A paradigm shift in global industrial manufacturing is beginning to take place, and areas like Indonesia, West Africa and Latin America could emerge as the next bull markets for investors. As the U.S. economy rebounds, it will undoubtedly remain consumer-driven, which is good news for one country in particular. 

The U.S. accounts for 78% of this country's exports, with the five largest U.S. import categories last year being electrical machinery ($56.8 billion), automobiles and parts ($53.5 billion), machinery ($42.3 billion), mineral fuel and crude oil ($39.9 billion), and optical and medical instruments ($10.4 billion). 

Top 10 China Stocks To Watch For 2014: eLong Inc.(LONG)

eLong, Inc. operates as an online travel service provider in the People?s Republic of China. The company provides its customers with travel information and the ability to book rooms, air tickets, vacation packages, and other travel related services utilizing call center and Web-based distribution technologies. It facilitates the customers to book rooms in approximately 10,000 hotels in 450 cities across China, and fulfills air ticket reservations in approximately 80 cities across China. In addition, the company offers the ability to book rooms at approximately 100,000 hotels outside of China; and provides the customers informative content relevant to hotel and air travel decisions, including tourist and event site destination information, hotel facility information, and photos. eLong markets its services through online marketing, traditional media advertising, co-marketing with established brands of other companies, and direct marketing. The company was founded in 1999 and is headquartered in Beijing, the People?s Republic of China. eLong, Inc. operates as a subsidiary of Expedia Asia Pacific Limited.

Advisors' Opinion:

• [By Shareholders Unite]

  The main on-line competitors are:

  Qunar.com, a travel website owned by Baidu (BIDU) and a few venture fundseLong (LONG), backed by Tencent (TCEHY.PK) and Expedia (EXPE). Analyst expect it to generate $163M in revenue next year

  That is pretty serious competition, needless to say. Having the backing of Baidu or Expedia offers several advantages, but Ctrip is the biggest and most established company. It's quite difficult to compare Qunar.com to Ctrip, for the simple sake that Qunar is a private company. However, there can be little doubt that it constitutes serious competition:

Top 10 China Stocks To Watch For 2014: China Telecom Corp Ltd (CHA)

China Telecom Corporation Limited, together with its subsidiaries, provides wireline and mobile telecommunications services in the People's Republic of China. The company?s services include wireline voice, mobile voice, Internet, managed data and leased line, value-added services, integrated information application services, and other related services, as well as prepaid calling cards. Its wireline voice services include local wireline services, domestic long distance wireline services, and international long distance wireline services. The company's mobile voice services comprise local calls, domestic long distance calls, international long distance calls, intra-provincial roaming, inter-provincial roaming, and international roaming. Its Internet access services consist of wireline Internet access services, including dial-up and broadband services, and wireless Internet access services. The company's integrated information application services include Best Tone services, which provide customers with phone number storage, enquiry, and call transfer services; and information technology-based integrated solutions, such as system integration, outsourcing, special advisory, information application, knowledge services, and software development. Its managed data and leased line services consist of services relating to optic fiber and circuits, such as optic fiber and circuit leasing, virtual private network, and bandwidth leasing. The company also offers other services, such as sales, rental, repairs, and maintenance of equipment; and provides consulting services, and e-commerce and booking services, as well as in the sale of telecommunications terminals. It serves government, enterprise, and residential customers. The company was founded in 2002 and is based in Beijing, the People's Republic of China. China Telecom Corporation Limited is a subsidiary of China Telecommunications Corporation.

Advisors' Opinion:

• [By Evan Niu, CFA]

  While China Mobile has never officially offered the device, the two smaller carriers do. China Unicom (NYSE: CHU  ) was the first Chinese iPhone carrier in 2009, and China Telecom (NYSE: CHA  ) followed suit in 2012. China Unicom and China Telecom have been consistently chipping away at China Mobile's lead in the lucrative market for 3G subscribers, a trend that has widely been attributable in part to the iPhone.

Best Energy Companies To Invest In Right Now: Home Inns & Hotels Management Inc.(HMIN)

Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors' Opinion:

• [By Seth Jayson]

  Home Inns & Hotels Management (Nasdaq: HMIN  ) reported earnings on May 13. Here are the numbers you need to know.

  The 10-second takeaway
  For the quarter ended March 31 (Q1), Home Inns & Hotels Management missed estimates on revenues and beat expectations on earnings per share.

• [By Belinda Cao]

  The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.

• [By Jim Jubak]

  The New York traded ADRs of China's Home Inns and Hotels Management (HMIN) have climbed 15.5% from September 24 to the close on October 11.

  Part of the reason is a October 10 recommendation from Goldman Sachs that added the ADRs to its top pick list. And part of the reason is a huge surge in domestic travel during China's recently concluded National Day holiday week. (Home Inns and Hotels Management is a member of my Jubak's Picks portfolio.)

Top 10 China Stocks To Watch For 2014: Perfect World Co. Ltd.(PWRD)

Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West ; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Sean Williams]

  What: Shares of Perfect World (NASDAQ: PWRD  ) , a China-based online video game developer, soared as much as 13% after the company reported better-than-expected first-quarter results.

Top 10 China Stocks To Watch For 2014: Renesola Ltd.(SOL)

ReneSola Ltd, together with its subsidiaries, engages in the manufacture and sale of solar wafers and solar power products. It offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules. The company also provides cell and module processing services. Its products are used in a range of residential, commercial, industrial, and other solar power generation systems. The company sells its solar wafers primarily to solar cell and module manufacturers. It principally operates in Mainland China, Singapore, Taiwan, Hong Kong, Korea, India, Australia, Germany, Italy, Spain, Belgium, France, the Czech Republic, and the United States. The company was founded in 2003 and is based in Jiashan, the People?s Republic of China.

Advisors' Opinion:

• [By Dan Caplinger]

  On Thursday, ReneSola (NYSE: SOL  ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

• [By Paul Ausick]

  Notable earnings reports currently on tap for next week: Qihu 360 Technology Co. Ltd. (NASDAQ: QIHU), Avago Technologies Ltd. (NASDAQ: AVGO), LDK Solar Co. Ltd. (NYSE: LDK), Tiffany & Co. (NYSE: TIF), Joy Global Inc. (NYSE: JOY), Campbell Soup Co. (NYSE: CPB), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), Krispy Kreme Doughnuts Inc. (NYSE: KKD), and ReneSola Ltd. (NYSE: SOL).

• [By Dan Caplinger]

  But Trina gave a troubling update to its quarterly guidance a couple weeks ago, saying that it shipped 390-400 megawatts of solar modules during the quarter, down from its original 420-430 megawatt estimate. With gross margins of just 1% to 3%, Trina isn't faring as badly as peer ReneSola (NYSE: SOL  ) , which posted negative gross margins in its quarterly report earlier this month. Yet Trina still isn't making enough money to come close to profitability in the near future.

Top 10 China Stocks To Watch For 2014: China Security & Surveillance Technology Inc. (CSR)

China Security & Surveillance Technology, Inc., together with its subsidiaries, manufactures, installs, distributes, and services surveillance and safety products, systems, and software in the People?s Republic of China. The company?s products include standalone digital video recorders (DVRs); embedded DVRs; mobile DVRs; real-time hard-compression coding cards; DVR compression boards; digital cameras; intelligent high-speed dome cameras; intelligent control system software platforms; perimeter security alarm systems; monitors; and radio frequency identification terminals and data collectors. It serves various customers, which include governmental entities, such as customs agencies, courts, public security bureaus, and prisons; non-profit organizations, including schools, museums, sports arenas, and libraries; and commercial entities consisting of airports, hotels, real estate, banks, mines, railways, supermarkets, and entertainment venues. The company is headquartered in S henzhen, the People?s Republic of China.

Top 10 China Stocks To Watch For 2014: Sina Corporation(SINA)

SINA Corporation provides online media and mobile value-added services (MVAS) in the People?s Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA.com offers free interest-based channels that provide region-focused format and content, including news, sports, automobile-related news, finance, entertainment, luxury, technology, digital, tools, collectibles, video, music, and wireless application protocol, as well as interactive platform for fashion-conscious users to share comments and ideas on a range of topics, such as health, cosmetics, and beauty. The company's microblogging platform, Weibo.com, enables its users to follow the hottest topics being discussed online, as well as discussions related to people they know. Weibo accounts consist of celebrities, commercial enterprises, government entities, and grass root Internet users. Its SINA Mobile service allows users to receive news and informatio n, download ring tones, mobile games and pictures, and participate in dating and friendship communities. The company also offers SINA Game, which serves as an interactive platform that provides users with downloads and gateway access to popular online games; SINA eReading, a shop for book reviews; SINA.net, an enterprise solutions platform to assist businesses and government bodies; and SINA Mall, an online shopping Website. In addition, it provides a platform for Chinese bloggers; photo-sharing platform; free email, VIP mail, and corporate email for enterprise users; audio and video-based instant messaging tools; proprietary search technology; and classified advertising services, as well as hosts topic-specific discussion forums in Chinese language; and creates user-maintained and supported online communities. The company has strategic cooperation agreement with China Unicom (Hong Kong) Limited. SINA Corporation was founded in 1997 and is headquartered in Shanghai, the Peop le?s Republic of China.

Advisors' Opinion:

• [By Kevin Chen]

  You may know that the Chinese government keeps its tech companies on a short leash. However, Chinese regulations shouldn't scare you out of your investments because the government-company relationship is a two-way street. Just look at the history of Baidu� (NASDAQ: BIDU  ) , SINA� (NASDAQ: SINA  ) , and Sohu� (NASDAQ: SOHU  ) .

• [By Rick Munarriz]

  Celebrities have a funny way of lifting a platform's visibility. Twitter was doing fine as a place for tech-forward folks to share short messages, but it really took off once entertainers took to pecking out 140-character missives. The same scenario played out in China with SINA's (NASDAQ: SINA  ) Weibo. The moment top athletes, rockers, and movie stars took to Weibo, it became the undisputed micro-blog of choice for the world's most populous nation.

• [By Paul Ausick]

  Over the past 12 months, shares of Qihoo 360 are up more than 200%, compared with gains of about 46% at Sina Corp. (NASDAQ: SINA) and about 20% at Baidu Inc. (NASDAQ: BIDU), two other booming Chinese Internet players.

Top 10 China Stocks To Watch For 2014: Qihoo 360 Technology Co. Ltd.(QIHU)

Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Its principal products include 360 Safe Guard, an Internet security product for Internet security and system optimization; 360 Anti-Virus, an anti-virus application to protect users? computers against trojan horses, viruses, worms, adware, and other forms of malware; and 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company?s platform products comprise 360 Safe Browser, a Web browser; 360 Personal Start-up Page, a default homepage of 360 Safe Browser and a key access point to popular and preferred information and applications; 360 Application Store, a key access point to securely obtain and manage software and applications; and 360 Safebox, a solution that protects users against thefts of personal account information. It also provides online advertising services, including online marketi ng services and search referral services; and Internet value-added services comprising the operation of Web games developed by third-parties, remote technical support, and cloud-based services. The company was formerly known as Qihoo Technology Company Limited and changed its name to Qihoo 360 Technology Co. Ltd. in December 2010. Qihoo 360 Technology Co. was founded in 2005 and is based in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Jon C. Ogg]

  Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) was reiterated as Buy, but estimates were raised and the target price was raised to $84 by BofA/Merrill Lynch. Here was our report on Qihoo 360 this morning.

• [By Rick Munarriz]

  Is it a coincidence that Qihoo 360 (NYSE: QIHU  ) rolled out a rival search engine last summer and that Baidu has come up short in each of its first two reporting periods where it had to compete with Qihoo 360 for the entirety of the quarter?

• [By Kevin Chen]

  Compared to Baidu (NASDAQ: BIDU  ) , Qihoo 360 (NYSE: QIHU  ) , arguably, has�inferior products,�so why has Qihoo stock almost tripled its investors' money over the past year while Baidu keeps hitting new 52-week lows?

• [By Rick Munarriz]

  Qihoo 360 (NYSE: QIHU  ) may be taking a page out of the Bing playbook.

  Reports late last week claim that the new Chinese dot-com darling is in talks to acquire Sohu.com's (NASDAQ: SOHU  ) Sogou search engine.

Top 10 China Stocks To Watch For 2014: Hampton Roads Bankshares Inc(HMPR)

Hampton Roads Bankshares, Inc. operates as the bank holding company for Bank of Hampton Roads (BOHR) and Shore Bank that provide community and commercial banking services primarily to individuals and small to medium-sized businesses. It offers traditional loan and deposit banking services, as well as telephone banking, Internet banking, remote deposit capture, and debit cards. The company also accepts commercial and consumer deposits that consist of various forms of demand and time accounts, including checking accounts, interest checking, money market accounts, savings accounts, certificates of deposit, and IRA accounts. In addition, it provides a range of commercial, real estate, and consumer lending products and services; commercial and industrial loans; construction loans; real estate-commercial mortgage; real estate-residential mortgage; and installment loans to individuals. Further, the company offers travelers? checks, coin counters, wire services, and safe deposit b ox services. Additionally, it provides letters of credit and standby letters of credit, and cash management products to commercial customers. The company also offers insurance products to businesses and individuals; securities, brokerage, and investment advisory services; and non-deposit investment products, including stocks, bonds, mutual funds, and insurance products, as well as engages in originating and processing mortgage loans. As of June 2, 2011, the company operates 48 banking offices in Virginia and North Carolina; and 8 banking offices in the eastern shore of Maryland and Virginia. It operates a network of sixty-seven ATM machines. The company was founded in 1961 and is headquartered in Norfolk, Virginia.

Top 10 China Stocks To Watch For 2014: China Automotive Systems Inc.(CAAS)

China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China.

Advisors' Opinion:

• [By Richard Schmidt]

  China Automotive Systems (CAAS), which makes auto systems and components, reported record-high net sales for the third quarter. The report excited investors, who bid the stock up about 30% for the month.