This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Play China's Olympics With These Stocks

HONG KONG -- Despite a sluggish start to the year for shares in Hong Kong, there is one young sector that is showing big gains in the first week of 2008: Olympic "theme" stocks.

Traditionally, theme stocks have been defined as those companies whose earnings investors think will get an uplift from the mass of tourists flooding into Beijing in August, such as Air China (AIRYY), for the summer games.

Recently, however, the sector has expanded to include companies that are more loosely related to the games, say market participants. The speculation has created a rush to find the next hot stock, and propelled some of the original theme stocks into orbit.

"Investors are chasing the share prices of any stock that is related to Beijing, or with the word Beijing in the name," says Richard Lee, an analyst at Core Pacific Yamaichi in Hong Kong. "Even second-liners, like Beijing textile companies which are less relevant to the Olympic games, are up strongly."

Lee says that the key companies benefiting right now from the buying frenzy are mainly sportswear makers and travel companies, but others such as Beijing Media (BJGMF), are also favorites.

While the Hang Seng has declined 2.5% so far this year to 27,112, this increasingly arbitrary group of companies has posted stellar gains, in some cases hitting record highs. For example, China Dongxiang (CDGXF), a maker of sportswear in mainland China, has risen 7% so far this year to HK$6.20. The shares listed last October and hit an intraday record high of HK$6.38 on Monday.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
CTVIF $0.45 0.00%
ANPDF $2.24 5.16%
CDGXF $0.23 0.00%
LNNGF $0.57 6.54%
AIRYY $24.81 2.35%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs