On the Road to Profits in China's Auto Sector

by George Leong

 Ever wonder how many cars are on the road in China? The estimates vary, ranging from 25 million to over 100 million. It seems no one really knows.

The Chinese auto sector had been sizzling, even overtaking the U.S. as the biggest car market in the world. With a middle class of over 300 million in a rapidly expanding Chinese economy, buying a car is paramount to the Chinese. However, the growth has been on the decline this year, as the government ended its tax incentives and jacked up taxes in order to streamline the number of new cars hitting the already clogged Chinese roads.

The Chinese car market grew 32% in 2010, but is estimated to falter to a mere three to five percent this year, according to the State Information Center.

So, while the Chinese auto sector will stall, it is clearly not dead. The demand for cars continues to be extremely high, as income levels continue to rise.

The key in China will be the rapid growth of the country's middle class. Credit Suisse predicted that the household wealth in China will double to $35.0 trillion by around 2015 based on achieving sustainable GDP growth at or near the current growth rate.

I have been a big supporter of the Chinese auto sector. Yes, the sector has slowed, but the massive potential is just too great to ignore. If you are patient, you need to have some capital in some of the Chinese auto-parts stocks or a play via U.S. automakers.

A lower-risk play on China's auto sector is General Motors Company (NYSE/GM). (Note that this is not a recommendation to buy the stock, but just an example to give you an idea of your options in this area.)

If you want to play via an U.S. automaker for less risk, General Motors is the top auto seller in China. GM and its Chinese partners (SAIC Motor and FAW Group) sold 2.35 million vehicles in 2010, well above the company's U.S. sales. The automaker is focusing its growth in China, as it feels the steady rise in the middle class will drive the demand for cars. GM will invest a minimum of $5.0 billion in China to try to reach a sales target of five million vehicles by 2015.

There is clearly some slowing in the Chinese auto market, but I view dips as an opportunity to buy for those with a longer-term view.

Consider that only about 41 in 1,000 Chinese own vehicles, according to some industry pundits. There is clearly ample room for growth, especially as the income levels continue to rise. This fact will drive vehicle sales going forward to the point where China will likely remain the top auto market in the world.

There are numerous ways to play the Chinese auto sector. You can buy an auto company on an American stock market with exposure to China, such as the major global automakers, as I discussed. Alternatively, you can buy Chinese auto-parts makers. Some interesting Chinese auto plays include China Automotive Systems, Inc. (NASDAQ/CAAS), Wonder Auto Technology, Inc. (NASDAQ/WATG), and SORL Auto Parts, Inc. (NASDAQ/SORL). Again, these are examples, not buy recommendations.



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Article Source: http://www.articlesphere.com/Article/On-the-Road-to-Profits-in-China-s-Auto-Sector/267777

Los Angeles Party Bus

 by Jamie S Hanson

 To celebrate an occasion in LosAngeles, the best way to do it in style is to go for the party bus rentals. The luxurious settings and the class are uncomaparable by any other mode of transportation. The party buses in LosAngeles present enough entertainment required to continue large groups content and involved with the occasion. You need not change vehicles with your group while criss-crossing from one venue to another and can travel in one vehicle enjoying the company of your friends in a single group in luxurious comfort. These party bus rentals are hired for a day, evening, or both, and hired for several days if the occasion so demands for you and your group to have fun and amusement while traveling.

Party bus rentals in LosAngeles, are used, for several purposes. The most essential aspect is the buses provide for safe travel with unlimited source of entertainment for any occasion. Over and above, it is a hassle free travel as you have your own personal transportation, without any strings attached. The other advantage is that you save on parking fees as it is eliminated, because you are having individual transportation.

The buses provide satellite TV transmission for entertainment. In addition, for excellent quality sound the high technology surround sound stereo system are available with various amenities for entertainment in a large, comfortable and luxurious setting. The bus can be hired for sports events or dance concerts. For reliability, class and style, party buses in LosAngeles are an excellent choice and a traveling experience to keep in mind for years to come.

For those interested in sightseeing with family and friends in a group, party bus rentals in LoAngeles are a viable option. Hiring a party bus service you can treat your family and friends to the various sites in and around LosAngeles or take them out of town to popular locations. All your guests will be comfortable in the luxurious bus, enjoy the sight seeing tour, and realize the unmatched experience of traveling in a party bus in LosAngeles. If you and your group are of age, then you can also enter a full bar in the bus. The party bus tour is unique.

Party buses in LosAngeles are suitable for any occasion ranging from children parties to more adult social events or ceremonies. Such party buses are most appropriate for planning a bachelor party if your friend is going to tie the knot. The bachelor's party are best to have on party buses.



To hire the best Los Angeles party bus and to know more about party bus service in Los Angeles visit our website partybusline.com

Article Source: http://www.articlesphere.com/Article/Los-Angeles-Party-Bus/229719