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Top Analyst Says China's Internet Boom Is Just Beginning

By Brian Weepie
Friday, June 9, 2017

Chinese Internet stocks are soaring...
 
Tencent Holdings (TCEHY), China's leading tech company, is up 44% in 2017. JD.com (JD), China's Amazon, is up 64%. And social-media firm Momo (MOMO) is up 114%.
 
It has been a spectacular year. But according to China's leading Internet analyst, the move isn't over yet. In fact, her message at our True Wealth China Opportunities Conference in Beijing this week was the polar opposite.
 
Like us, she believes the future of Chinese Internet stocks is bright. Let me explain...
 
Fawne Jiang is a go-to resource when it comes to Chinese Internet and tech investing.
 
Jiang is the top-ranked China Internet analyst on Wall Street. She covers China consumer and Internet stocks at New York-based investment bank Benchmark.
 
Right now, she's bullish.
 
On Monday, Jiang explained to our crowd the three reasons why she's confident.
 
Her first point, population, is obvious. China is big.
 
Ten U.S. cities have populations of more than 1 million people. China has more than 100 cities that size. And the majority of them have Internet access.
 
China has around 720 million Internet users – more than two times the number of people living in the U.S.
 
These Internet users are busy. They play video games... communicate with coworkers... pay their bills... call their parents... and upload photos and videos online.
 
The average Chinese Internet user spends 26 hours per week online. But that doesn't tell the full story...
 
People born after 1990 spend 80 hours per week online (versus just eight hours a week for the same age range in the U.S., according to research firm Statista). This is a demographic boon for the Internet sector in China. It means future demand will remain incredibly high.
 
What you might not expect is the quality of the online products available in China. The technology the Chinese are creating and consuming isn't like the cheap Chinese-made toys your parents bought you when you were a kid.
 
They're the best in the world. And they're innovative...
 
Tencent's WeChat app has more features than anything available in the U.S.
 
Tencent itself is a comprehensive online ecosystem. Imagine if Facebook, YouTube, Zynga, Blogger, PayPal, and LinkedIn were all owned by the same company.
 
The last 20 years of Chinese history have seen incredible advancements in technology. The creation of companies like Tencent is a perfect example.
 
But Jiang is more excited for what the future holds... And she believes the next 20 years will prove even more unbelievable than the last 20.
 
In 2017, the Chinese Internet sector is booming... But the top analyst on Wall Street says we're getting started.
 
Good investing,
 
Brian Weepie




Market Notes


THE POWER OF THE INSIDER

Today, we'll highlight why you want a company's leadership to have "skin in the game"...
 
Corporate insiders are a company's management team, directors, or shareholders who own at least 5% of a company. They have access to information that the public doesn't. In general, the most important insiders are the ones at the top of the company. After all, they understand their businesses better than anyone. When these insiders hold big positions in their business, it suggests that your interests line up with theirs, and that they believe their stock is worth owning.
 
For proof, take a look at Salesforce.com (CRM). The $65 billion tech titan provides its clients with customer relationship management software. And CEO Marc Benioff has plenty of skin in the game – he owns more than 34 million shares of his company's stock, worth about $3.1 billion.
 
As you can see, Salesforce.com is in a big uptrend. Shares are up nearly 170% over the past five years, and just hit a new all-time high. Benioff's huge stake in CRM shares is a good sign for individual investors who know he'll continue to work on pushing the stock to new highs...
 

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