It is the general consensus that China will be the next engine of growth for the World. It would be good if we investors could get a piece of the pie. Rather than investing directly into companies in China, or buying trust funds that invest in companies in China, I would like to invest in Malaysian companies that invests in China.

Lets share these companies in this thread, so the others can research more into these companies.

One of the companies I've read in this forum that's always associated with China is Parkson.

Also, news is that recently Najib made some deals with China about that has something to do with crude oil.

And IJM being offered the chance to develop a project in China.

IMO, even at that level, picking and investing in companies that does China play also not easy.

We all know this giant panda has tremendous growth opportunities and its lush evergreen of bamboo forest make others green with envy and attracted a lot of MNCs wanted to play with her and her off springs.

The problem here is a lot of those little pandas who wanted to play and trade are always under the watchful eyes of the giant mother panda (the Chinese Govt). The mother panda is very vicious and her bite can be lethal. Sometimes, the mother panda makes no distinction between friends or foes and is very very protective of trade. Any downside to trade, the mother panda always use full force of secret and unpublished law to its full advantage and can mandate any MNC companies into virtually non-existence. This scare the shit out of everyone.

Case in point here is Rio Tinto. Rio produces iron ore and it knows China Steel Maker companies want its products but its recent trade talks went south when suddenly the Central Govt steps in and arrests its executive and accuse him of stealing state secrets (when trade isn’t in their favor). This is a serious issue. Every time when the govt steps in, trade transparency virtually goes out the door.

Right now, everyone is watching and things aren't as rosy as it seems when you wanted to play with those cute rich little pandas 'coz big mama Panda is watching and she'll come charging if you're not careful.

This post has been edited by danmooncake: Jul 13 2009, 12:18 AM

...and don't forget that only two weeks after the RTZ deal went south the Chinese miraculously discovered the world's largest known reserves of iron ore - practically on the doorstep.

You gotta smile........

This post has been edited by David_Brent: Jul 13 2009, 12:22 AM

Yeah man.. you gotta give it to them.. Rio Tinto is probably a no win situation now,
Mao zedong wins again.

Back to this topic..

China already thrive in manufacturing, industrial, food and now, going into service sector.
The only thing that they don't have much is raw materials.

I do wonder what kind of stuff that Malaysia can offer to China that China
really needs other than raw materials which we already doing anyway?

Try taking a look at mega first corporation.

Their doing a joint venture with IJM to do a power plant in laos or somewhere there I think, their in the business of power plants, property, lime stone quarrying. The biggest plant is in China. They also have a plant in Sabah as well. Their property division is kicking off, PJ8 was finished recently, that was a joint venture with IJM. They have several other businesses and property projects as well.

Their market cap is somewhere around RM238 million, but their cash holdings is RM140 million. Historically they've been a stable company with growing profits, although their profits have been down for the past year or so.