NEW YORK (TheStreet) -- Despite the skepticism about Chinese investments from U.S. investors, TheStreet's Gregg Greenberg is with John Burke, president of Burke Financial Strategies, to discuss how investors can still participate.
Burke is not a huge fan of investing in individual Chinese companies. The problem, he said, is many of them are state-owned enterprises (SOE), and have different objectives than the company's shareholders.
Instead, he suggested investors look at U.S. companies that have a rapidly growing Chinese business segment, like Coca-Cola (KO) and Dupont (DD).
Another company doing well in the country is General Mills (GIS). The Chinese population prefers international brands when it comes to their dairy products, due to previous issues from domestic dairy.
However, he said GIS was a bit expensive, since it is up roughly 25% in 2013. Instead, Burke suggested investors take a look at Diageo (DEO), the world's largest manufacturer of liquor.
The company has done very well in China, particularly with its super premium whiskey, and has underperformed the S&P 500 year to date.
Another name he liked was Lenovo (LNVGY), which is a non-SOE Chinese company.
Burke concluded that the company's strong top-line growth of 17% was largely outpacing many other companies and should allow margins to expand. It also has strong management.
-- Written by Bret Kenwell in Petoskey, Mich.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV