Why Wall Street Invests in China and How You Can Too

China. Even in the midst of today's recession the word evokes the imagery of growth opportunities. With the world's fastest growing Internet population, little wonder Western investment bankers are eager to position themselves to partake of an expected bounty.

Emerging growth companies have spent several years forging solid relationships with China's emerging community of capitalists.

China's growth engine means long-term emerging growth opportunities, doesn't it? And because long-term growth for sales revenues could mean nice cash flow for companies doing businesses in China, today's investors are taking notice. But what if you could add to that, subscription based renewal income? What if you also chose to serve an industry which is part of China's growing infrastructure? Combine business models like that with China's booming tech sector and you have a recipe for equity growth.

Buy what the big guys can't

But why wait? It's no mystery that Wall Street is making investments in China and why. The real mystery is why aren't more private investors poised to invest in the growth companies that Wall Street can't buy because they aren't big enough to accept Wall Street's too-big-to-fail sized pools of capital?

Shrewdly named China Broadband, Inc. (www.chinabroadband.tv.) has looked to the Shandong Province of China. Shandong is one of the leading producers of many of the country's products. But instead of a U.S. company with ready Investment Banking capital looking to enter China, China Broadband is a China-based entity looking to introduce itself to U.S. capital.

China Broadband recently announced a business transaction that would allow the company to tap into vast investment opportunities within China's emerging growth engine and its infrastructure. It will position the company to deliver multimedia advertising content to internet cafés throughout the People's Republic of China, in turn hopefully positioning shareholders to see profits from the venture. Think of it this way: with a little luck China Broadband may wind up being a pipeline via which China's internet users communicate on their nation's version of Twitter.

Concerned that internet growth may slow down in this economy? Don't be. China continues to see growth in internet use to such a degree that as recently as November, the Chinese Ministry of Health began taking steps toward making China the first county to officially recognize internet addiction as a clinical disorder!

(Source: Guardian UK: China recognises internet addiction as new disease http://www.guardian.co.uk/news/blog/2008/nov/11/china-internet.)

This diagnosis suggests a treatment for your portfolio: invest in China's internet.

And of course, as the worldwide recession ends, who doubts we'll again see more investment stories like this one? (Fortune May 2007 Wall Street's war for China http://money.cnn.com/magazines/fortune/fortune_archive/2006/05/29/8378040/index.htm.)