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Good Solid Chinese Stocks

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This is by no means stock recommendations, but it's obvious to anyone watching the world news and market that Chinese economy is stoked up. These Chinese stocks look like great common sense investments and should benefit from China's infrastructure upgrade plans and their stimulus package allocated to further modernize the country. This should benefit a lot of Chinese companies, especially those who work directly on infrastructure projects or benefit from them once they are completed.

Yanzhou Coal Mining (NYSE: YZC)

China's power plant s for the most part are powered by coal. China has added a lot of power plants and electrical grid development in the last few years and its only increasing. Yanzhou Coal should benefit handsomely as the demand for coals increases steadily.

Guangshen Rail (NYSE: GSH)

China is expanding its rail system at a breakneck pace. Although foreign rail companies will get part of the business of transporting China's export goods across the country, Guanshen Rail should certainly benefit.

China Mobile (NYSE: CHL)

China Mobile is a huge mobile phone company and has a larger user base than any other wireless communications company. China's mobile subscribers total well over three hundred million people which is larger than the population of all but itself and India. Its profits margins are impressive and it looks like it is on an upward trajectory.

Baidu.com (NYSE: BIDU)

Instead of Google, the Chinese use Baidu in much larger numbers and that doesn't look to change anytime soon. Their revenue growth has been impressive and the potential internet market in China is huge.

China Automotive Systems (NYSE: CAAS)

It is no secret that the automobile growth driver for the world is China and will continue to be for the foreseeable future. As a matter of fact, it is already the largest car market in the world per Wikipedia. China Automotive Systems supplies automobile parts and power steering systems and components to automobile manufacturers in China.

The Buy and Hold strategy of the past is not the safest approach anymore in the investment world of what is being called "The New Normal." It may be wiser to take profits after a certain level of gain for each stock. Reinvest those profits elsewhere and diversify into a variety of instruments not just stocks. Set low points for each stock and sell if it drops when it hits that low. Of course, it is a good idea to wade slowly into new territory. Index funds and ETFs are also another option to spread the risk around.