{"id":40437,"date":"2013-07-30T13:07:44","date_gmt":"2013-07-30T17:07:44","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=40437"},"modified":"2013-07-30T17:21:36","modified_gmt":"2013-07-30T21:21:36","slug":"why-you-need-to-watch-this-chinese-rail-stock-in-spite-of-stalling-gdp-growth","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2013\/07\/30\/why-you-need-to-watch-this-chinese-rail-stock-in-spite-of-stalling-gdp-growth\/","title":{"rendered":"Why You Need to Watch This Chinese Rail Stock in Spite of Stalling GDP Growth"},"content":{"rendered":"<p>By Profit Confidential<\/p>\n<p style=\"text-align: justify\"><a href=\"http:\/\/www.profitconfidential.com\/chinese-economy\/this-chinese-rail-stock-in-spite-of-stalling-gdp-growth\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-40340\" alt=\"GDP growth\" src=\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/07\/300713_PC_leong.jpg\" width=\"238\" height=\"158\" \/><\/a>America was built and linked by the railroad that spans the nation, connecting the Pacific and Atlantic oceans. The railroad has great importance, as people use it for travelling and companies for transporting their goods. Without the railroad, commerce wouldn\u2019t have been able to grow as much as it did heading into the 20th century.<\/p>\n<p style=\"text-align: justify\">An ocean away in <a href=\"http:\/\/www.profitconfidential.com\/china\/\" target=\"_blank\">China<\/a>, we have also been seeing an economic revolution that may be stalling but, in my view, continues to be one of the top growth markets in the world longer-term.<\/p>\n<p style=\"text-align: justify\">While there are many that would argue this, I\u2019m not in that camp. (Read \u201c<a href=\"http:\/\/www.profitconfidential.com\/chinese-economy\/how-to-buy-blue-chip-chinese-stocks-on-the-cheap\/\" target=\"_blank\">How to Buy Blue Chip Chinese Stocks on the Cheap<\/a>.\u201d) Yes, the near term could pose issues in China as far as its stalling GDP growth, but I simply cannot ignore the massive potential there, given the country\u2019s population and increasing trading partners and global markets.<\/p>\n<p style=\"text-align: justify\">One area of major growth has been China\u2019s expansion of its transportation network, whether it\u2019s roadways, air space, or rail. Just like America, China needs to expand its transportation network to allow its companies to flourish and to connect its 1.3 billion citizens.<\/p>\n<p style=\"text-align: justify\">China\u2019s Premier, Li Keqiang, said that he wants to increase the rate of development of China\u2019s railway network via a specific development fund, according to Bloomberg.<\/p>\n<p style=\"text-align: justify\">A mid-cap Chinese railroad stock that I have been following for a while is Guangshen Railway Company Limited. (NYSE\/GSH). The company trades in the U.S. via its American depositary shares (ADS).<\/p>\n<p style=\"text-align: justify\">The company\u2019s key focus at this time is its passenger services. This network includes the Guangzhou\u2013Shenzhen inter-city train service, long-distance passenger, and the Hong Kong Through Train passenger service that is operated with MTR Corporation in Hong Kong. (I have personally ridden the popular Guangzhou-Shenzhen and Hong Kong lines.)<\/p>\n<p style=\"text-align: center\" align=\"center\"><i>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<a href=\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/07\/GSH-Gaungshen-Railway-Co-Ltd-Chart.jpg\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-40339\" alt=\"GSH Gaungshen Railway Co Ltd Chart\" src=\"http:\/\/www.profitconfidential.com\/wp-content\/uploads\/2013\/07\/GSH-Gaungshen-Railway-Co-Ltd-Chart.jpg\" width=\"550\" height=\"245\" \/><\/a>\u00a0 Chart courtesy of <a href=\"http:\/\/www.stockcharts.com\/\">www.StockCharts.com<\/a><\/i><\/p>\n<p style=\"text-align: justify\">The freight business moves full-load cargo, single-load cargo, containers, bulky and overweight cargo, dangerous cargo, fresh and live cargo, and oversized cargo.<\/p>\n<p style=\"text-align: justify\">The heart of its rail network is its 299-mile Shenzhen\u2013Guangzhou\u2013Pingshi railway that transports both people and freight. In fact, the route is found in China\u2019s key economic development zones.<\/p>\n<p style=\"text-align: justify\">Growth has been stellar with revenues increasing in each year from $409.95 million in 2002 to $2.42 billion in 2012.<\/p>\n<p style=\"text-align: justify\">While the stock is well up from its 52-week low of $13.97, I still see above-average growth opportunities for the aggressive investor with a longer-term view. But be careful, as the chart shows a near-term decline and possible upcoming weakness that could be a buying opportunity.<\/p>\n<p> Article by <a href=\"http:\/\/profitconfidential.com\/\">profitconfidential.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Profit Confidential America was built and linked by the railroad that spans the nation, connecting the Pacific and Atlantic oceans. The railroad has great importance, as people use it for travelling and companies for transporting their goods. Without the railroad, commerce wouldn\u2019t have been able to grow as much as it did heading into &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.investmacro.com\/forex-news\/2013\/07\/30\/why-you-need-to-watch-this-chinese-rail-stock-in-spite-of-stalling-gdp-growth\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Why You Need to Watch This Chinese Rail Stock in Spite of Stalling GDP Growth&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-40437","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/40437","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=40437"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/40437\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=40437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=40437"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=40437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}