Wednesday October 01, 2008
"I expect that if McCain gets elected he will not alter the US policies toward China and therefore that country's economic modernization plans," says global specialist Yiannis Mostrous.
In his The Silk Road Investor, he says, "Lonking Holdings Limited (OTC: CIMHF) stands to benefit tremendously from this plan."
"China’s main focus is the improvement of the economy’s infrastructure. The theme fit well what international developmental agencies have been estimating, namely that more than USD600 billion will be spent improving living conditions in Asia, home to a third of the world’s population.
"China and India are at the forefront of such efforts, with Indonesia, Thailand, the Philippines and Vietnam right behind. Roads, railways, airports, power production, electricity supply, clean water and waste management are all on the to-do lists.
"China, leading the way on roads, railroads and energy, is now in the construction phase of a 30-year, 85,000 kilometer expressway project. It’s also building a railway that will link China’s east and west for the first time, and China and other Asian countries are in the planning stages of a trans-Asia rail link.
"Beijing hopes to build the world’s longest subway system by 2020. And the country also continues to invest big in energy--conventional as well as nuclear and solar.
"Lonking Holdings Limited, which trades in Hong Kong (3339) or over-the-counter with the symbol CIMHF, stands to benefit tremendously from this plan.
"It is the only Chinese heavy machinery company that individual investors can easily access because it’s listed in Hong Kong. It’s the second-largest loader producer in China. It’s also diversified into producing forklifts and excavators recently, which should help future earnings growth.
"CIM is expected to surpass competitors and become the largest loader producer in China by sales volume. Because of its success, the company is planning to allocate more money in its research and development (R&D) program in order to improve quality."
