BEIJING (TheStreet) -- A new phase for China's asset cash-out is under way with big implications for the country's economy and China Inc.'s American competitors.
One way to play the Chinese government's decision on Tuesday to sell stakes in six state-run conglomerates, on top of the Sinopec (SHI) and China Telecom (CHA) assets that have been on the block since earlier this year, is to invest in rivals with Asian footholds such as Dow Chemical (DOW - Get Report) and Kraft Foods (KRFT).
The government very well could fail to find private buyers willing to sink money into conglomerate subsidiaries such as liquid-crystal display chemical maker Valiant, whose competitors include Dow's electronics supplier unit, and packaged-food divisions of the conglomerate Cofco Corp., whose goods share Chinese supermarket shelves with Kraft products.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts