Local investors continue to flood into China's stock market, Tim Seymour, managing partner of Triogem Asset Management, said Friday. When coupled with lower interest rates and the ability for foreign investors to participate in the market, it's not surprising the rally there has been so strong.
The best play on China is Alibaba (BABA) , according to Pete Najarian, co-founder of optionmonster.com and trademonster.com. The company's international expansion will fuel long-term growth.
Don't forget about Baidu (BIDU) , said Guy Adami, managing director of stockmonster.com. The stock has been trading well, the company reported strong earnings and the growth remains impressive, he added.
Investors looking for a less direct play on China but who still want exposure to the region should consider buying Las Vegas Stands (LVS) . Steve Grasso, director of institutional sales at Stuart Frankel, said the stock has traded poorly but may be near a bottom.
"I don't think it's in bubble territory," Adrian Mowat, chief emerging market and Asian equity strategist at J.P. Morgan, said about Chinese equities. The market is only about one-third as high as its previous peak in 2007. Chinese investors used to invest so much into real estate and now some of those funds are finally flowing to stocks, he explained. His top concern is the Chinese government's growth targets are too high.