Investors Turn To The China Technology ETF As Asian Competition Heats Up

“Whatever happened to American television industry is about to happen to a big chunk of the high tech industry. Remember Zenith and RCA? Those American companies pioneered television technology, but were eventually crushed by the Asian competition. China and its Asian neighbors are going to turn many of today’s American technological kingpins into historical footnotes in a matter of years and that has painful (and profitable) implications for anyone who invests in technology stocks. Here is the key to investing in tech stocks going forward: You need to steer clear of all tech companies that are competing against low-cost Asian competitors and get “long” any tech stocks that get most of their sales from Asia. I am sad to say that very few American tech companies meet that criteria,” Tony Sagami Reports From Howe Street.
 
Sagami goes on to say, “Some of China’s most successful companies are focused on manufacturing basic materials. I understand tech from the inside and I can see a clear, obvious and monumental shift going on right now. It is quiet and slow but, like a glacier, the move is unstoppable and will crush everything in its wake. There are thousands of Asian technology companies that you can invest in and many are listed in the U.S. on the Nasdaq, NYSE, or over-the-counter market. Of course, you have to do your homework to separate the mutts from the purebreds, but I am here to tell you that I expect Asian tech stocks, Chinese tech stocks in particular, to outperform U.S. stocks by a wide, wide margin.”

“If you are more of an ETF investor, you could take a look at Claymore China Technology ETF (NYSE: CQQQ), which includes Chinese tech giants like Bidu.com (NADAQ: BIDU), BYD Corporation, Netease.com (NASDAQ: NTES), Alibaba.com, and Sina.com (NASDAQ: SINA) . The above are some of the largest Chinese technology companies, but it isn’t a list of what I consider to be the most exciting, fastest-growing ones. But that’s a subject for a different issue. Now’s the time to get your arms wrapped around the new paradigm of technology investing and that, my friends, means that you better start thinking China, China, China,” Sagami Reports.

See The Full Article: HERE

Here are some details we put together on the Claymore China Technology ETF (CQQQ) below:

The investment ETF (CQQQ) seeks to replicate, net of expenses, the AlphaShares China Technology Index. The fund will invest at least 80% of assets in common stock, ADRs, ADSs, GDRs and IDRs that comprise the index. The index is designed to measure the performance of publicly-traded companies which are based in mainland China, Hong Kong or Macau, are in the information technology sector (as defined by GICS) and are open to foreign investment. The fund is nondiversified.

FUND HOLDINGS    
as of 4/6/10    
NAME SYMBOL WEIGHTING
TENCENT HOLDINGS LTD (700)  9.80%
BAIDU.COM – ADR (BIDU)  9.65%
BYD CO LTD (1211)  7.48%
NETEASE.COM INC-ADR (NTES)  6.56%
SEMICONDUCTOR MFG USD0.0004 (981)  5.71%
ZTE CORP (763)  4.59%
LENOVA GROUP LTD (992)  4.58%
ALIBABA.COM LTD (1688)  4.50%
SINA CORP (SINA)  3.97%
KINGBOARD CHEMICAL HOLDINGS (148)  3.93%
HI SUN TECHNOLOGY CHINA L (818)  3.72%
SHANDA INTERACTIVE ENTERTAINMENT LTD (SNDA)  3.48%
SOHU.COM INC (SOHU)  3.35%
AAC ACOUSTIC TECHNOLOGIES (2018)  3.01%
TPV TECHNOLOGY LTD (903)  2.29%
ASIAINFO HLDGS (ASIA)  2.28%
DIGITAL CHINA HOLDINGS LTD (861)  2.24%
JU TENG INTERNATIONAL HOL (3336)  2.01%
GIANT INTERACTIVE GROUP INC (GA)  1.91%
KINGBOARD LAMINATES HOLDI (1888)  1.75%
COMBA TELECOM SYSTEMS HOL (2342)  1.65%
BYD ELECTRONIC INTERNATIO (285)  1.63%
TRAVELSKY TECHNOLOGY LTD (6960)  1.52%
KINGDEE INTERNATIONAL SOF (268)  1.42%
KINGSOFT CORP LTD (3888)  1.08%
MEADVILLE HOLDINGS LTD (3313)  0.85%
NAN HAI CORP LTD (680)  0.83%
WASION METERS GROUP LTD (3393)  0.76%
CHINA DIGITAL TV HOLDING (STV)  0.76%
INSPUR INTERNATIONAL LTD (596)  0.72%
CHINA AEROSPACE INTERNATI (31)  0.70%
SOLOMON SYSTECH INTERNATI (2878)  0.64%
GLOBAL RESOURCES DEVELOPM (8116)  0.62%

Chart for Claymore/AlphaShares China Technology (CQQQ)

Leave a Reply

Your email address will not be published. Required fields are marked *