This Day On The Street
Continue to site
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

Will Chinese Investors March with the People's Liberation Army?

Companies recently mentioned by Chinese stock analysts as possible candidates for fresh fundraisers in the near future include radar-microwave systems manufacturer Glarun Technology, satellite and rocket maker China Aerospace Science and Technology and naval defense electronics supplier Highland Digital Technology.

Many Chinese military suppliers are already strong players in civilian sectors. They're also reaching out for business overseas.

Glarun, for example, supplements weaponry with food irradiation and traffic-control products. Guangtai, which makes a wide range of airliner fueling and service vehicles for airports, is a military supplier that last fall started negotiating for U.S. airport contracts. Marketing departments for China's state-run satellite, rocket and space-related companies offer their wares globally.

Analysts this week were recommending defense stocks in anticipation of the Zaozhuang confab. Yet, investors who take their advice would be going against the grain because overall stock prices for these companies have been falling since the beginning of the year.

A defense industry index of 50 leading military supply companies listed on the Shenzhen exchange, for example, has declined 11% since January. The exchange's 100-company defense index has lost about 9%.

On Thursday in Shenzhen, Guangtai gained 0.05% to close at 14.78 yuan a share and Highlander rose 3.5% to 15.01 yuan. Shanghai-listed Glarun ended the day at 48.50 yuan a share, up 0.7%.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Yellen's Desperate Fed Easing Probably Won't Do Any Good

2 of 2

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
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $117.58 0.73%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs