The world economy is overall, a mess. The stock market has its moments and certainly has been on an upward trend for a little while now, however overall consumer confidence is still low. With conflicting reports coming out about jobless claims, consumer spending and company profit reports, there does not seem to be a good place to put your money for it to grow consistently. In troubling financial times savvy investors find new places to put their money to continue to receive a solid return on their financial portfolios. One such option is Chinese energy companies.
This past month it was put out for the world to know that China is now the number two economy in the world. They have gone through an industrial revolution like no other in the last twenty years. Infrastructure has been improved, leaps have been made in their technology sector and also in pharmaceuticals. However, the biggest cash cow of them all is their energy companies. When you pick an energy company, make sure to look for steady dividends -- dividend investing is often easiest strongest in energy sectors.
Chinese energy companies can be broken down into two categories; alternative energy, and classic. Alternative energy companies are taking a bit of a foot hold in China. One reason is that the government is encouraging green energy investment. Although it is not known for sure, one can speculate, that companies that put money into alternative energy research and development are given breaks by the Chinese government. Not to mention that going green is a very popular idea around the world. Because of the need for advanced energies that produce less pollution, engineering degrees (especially petrol and chemical engineering degrees) are considered some of the best college degrees available.
When these companies go public it creates quite a buying frenzy. For example Suntech Power, a solar panel manufacturer, saw its stock triple in just one year. One thing investors need to be aware of, however, is that these companies process can fluctuate massively over the course of a week or a day. Some of this has to do with the fact that the stocks are not trade in as high of volumes as say a company such as Citibank. Because of this, at times, it can be incredibly difficult to sell the stock you have purchased. So make sure their is a heavy enough trading value to actually see the growth in your investment and not just leave money sitting on the table.
The more traditional energy companies in China are oil companies. China is the number two consumer in the world for oil, as an importer that is. However, China has also, in the last decade, found large deposits of oil in their country from border to border. The find in Tibet, which keeps the Chinese grip on that country tight, to the find of the coast of the Hebei province. Couple this with the increased consumption of oil over the last few years, well over 1 % increase, and you have a great place to place your money. Chinese oil companies are becoming major players in the oil market and for good reason they have a bit and need a ton more. The driving demand makes these companies extremely profitable which yields investors a nice bit of profit potential.
Whether it is alternative energy or typical oil companies the Chinese energy market is booming. Get in now before you miss the chance. If you're looking for more investments that have opportunities for short term growth (for example, in order to retire early), then check out natural gas stocks, gold stocks, and almost any drilling/mining stock related to commodities and/or agriculture.
Shaun Connell - Shaun Connell is a writer, publisher, and investor living in central area of the United States. He began working as a part-time freelance ...
