China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World [Hardcover]

Robert Hsu (Author)

Book Description

Publication Date: May 2, 2008

As one of the leading experts on investing in China’s economy, author Robert Hsu advises people every day on how a China strategy will truly take them to a new level of investing. With his new book, Hsu shows you how to build your fortune by participating in what he calls the “China Miracle.” Page by page, Hsu helps you navigate this dynamic market and reveals the best ways to invest in the world’s fastest-growing economy.

Editorial Reviews

Review

"...top tips on investment strategy to exploit the "China miracle" of runaway growth..."Private Eye Thursday 7 August 2008

From the Inside Flap

China is on fire! In the course of barely a decade, China has become the world's fastest-growing economy and it is now the world's most important marketplace. China produces more steel, coal, clothing, and toys than any other country in the world, and exports to the U.S.alone have grown by more than 1,500% since the 1990s. These are the figures that everyone talks about. What they don't know is that the Chinese consumer is the real growth driver and has become singularly important to the global economy. Because of the incredible growth in China, there are 1.3 billion people who suddenly have the ability to create personal wealth. This new reality has created an unprecedented opportunity for global investors to grow their portfolios and build their fortunes.

As big investors scramble for their piece of theChina pie, however, individual investors are being fed misinformation and conflicting reports that could lead to disastrous investments. Investing in China is easier to navigate and much more profitable when you know what to look for—and China Fireworks will show you the way.

Author Robert Hsu has been making money for years by watching China's growth and identifying trends that deliver the greatest return for investors. As one of the leading experts on investing in China's economy, he advises people every day on how a China strategy will truly take them to a new level of investing.

With this book, Hsu shows you how to build your fortune by participating in what he calls the "China Miracle." Hsu begins by explaining the key differences between China's major economic and geographic regions, as well as Hong Kong, providing insight into how consumer spending habits differ and what that means for you when building an investment strategy in China. He then shows investors how to take advantage of China's economic boom by identifying companies that are:

• Providing the government of China with what it needs and the people of China with what they desire

• Improving their bottom lines by effectively utilizing China's manufacturing capabilities

• Excelling in the international marketplace thanks to the innovation of China's new class of entrepreneurs

Along the way, Hsu also details exactly how to find industries that are growing, pick industry leaders, make your buys, and sell for a profit.

With China Fireworks as your guide—along with some thoughtful research and common sense—you'll be well on your way to getting rich from the "China Miracle."

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Product Details

• Hardcover: 276 pages
• Publisher: Wiley; 1 edition (May 2, 2008)
• Language: English
• ISBN-10: 0470276770
• ISBN-13: 978-0470276778
• Product Dimensions: 9.1 x 6.1 x 1.2 inches
• Shipping Weight: 14.9 ounces (View shipping rates and policies)
• Average Customer Review: 4.3 out of 5 stars  See all reviews (6 customer reviews)
• Amazon Best Sellers Rank: #1,069,478 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

5.0 out of 5 stars Incredibly Dynamic Economic Environment!, September 3, 2009

By 

Loyd E. Eskildson "Pragmatist" (Phoenix, AZ.) - See all my reviews
(HALL OF FAME REVIEWER)    (REAL NAME)   

This review is from: China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World (Hardcover)

Hsu's intent is to provide investment advice for those interested in China. This he does well, explaining both his style of investing (momentum-driven), and the types of investments to look for and look out for. In the process, he also tells the story of a very dynamic economy.

First, some of the superlatives. China produces more steel, aluminum, cement, coal, clothing, and toys than any other nation. It has the most cell-phone users (average fees = $6/month). China already has the world's largest dam and airport, high-speed train network, and highest railroad. Now it is finishing a six-lane bridge connecting Shanghai with the island of Yang-shan (20 miles offshore) that will be the largest sea-span bridge and connect with the world's largest port. Shanghai alone has 40% of the world's construction cranes; the nation builds the equivalent of a new Philadelphia every six weeks, and a new nuclear power plant every year. China was also the world's largest manufacturing exporter in 2006, up from half the size of the U.S. in 2000. Renewable power sources are mandated to increase from 7% in 2008 to 15% in 2010.

Hsu sees Confucian values (social harmony via respect for authority, emphasis on education, strong interpersonal relationships, and personal integrity) as supportive of China's economic growth.

The author points out that China's major cities and provinces have different cultures, and sometimes different languages, and suggests those looking for real estate opportunities focus outside of Shanghai and Beijing - less competition, and larger overall population. Avoid investing in State-Owned Enterprises (SOE) - they generally are not well managed, and the government recently mandated they become self-sufficient or dissolve - about 2,000 of the remaining 100,000 went bankrupt in 2008. Hsu also points out that Chinese firm valuations are often severely distorted by the fact that the government may hold (without trading) a majority of shares in them. Hsu also suggests staying away from firms traded only on Chinese exchanges - their financial reporting requirements are not that stringent.

Chinese casinos can be very profitable (Macao's Sands Casino was built in 2004 and recouped that amount in less than one year), but differ from the U.S. - Chinese gamblers don't drink, consider fine shopping and dining a waste of time and money, and ignore slots. The focus is on table games.

Hsu sees education as a big business in China. It is estimated that a typical Chinese household with a child spends more on education than housing and health care. There are about 70,000 private school, serving 14 million students (200/). There is also a large market teaching English (especially to pass the TOEFL and GRE). English is now mandatory for high-school graduation. Recently the government mandated that rural schools accept pupils unable to pay tuition and books.

On average, less than 20% of the price a brand-name product commands in the U.S. goes to Chinese manufacturing. Per UBS AG, China earns only 0.35/Barbie doll retailing for $20 in the U.S. Because of these low margins, and the fact that other areas of China and Asia stand ready to take over, Hsu recommends staying away from investing in Chinese manufacturing. (China, however, is working to learn R&D in manufacturing and drug development - so watch out!)

Personal health care spending now averages $55/person/year, and Hsu sees this area as another good opportunity for investment.

Bottom Line: Very interesting and credible.

3 of 4 people found the following review helpful:

4.0 out of 5 stars Cracker wee book, July 22, 2008

By 

Roger Thompson (Panay Bay , Philippines) - See all my reviews
(REAL NAME)   

Amazon Verified Purchase

This review is from: China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World (Hardcover)

As the reviewer above, alludes, Mr Hsu operates an online subscription newsletter. One small niggle I have with the book is that it occasionally lapses into "advertorial" mode. Another grizzle is that the author takes a negative slant on the USA stockmarket. Examples given, of extended periods of low capital growth, do not include the dividend quotient. At those times dividend pay-outs were greater than today, and it is a tadge naughty to overlook them as a part of the total returns. But, aside from these points, this book is a mine of useful information for investors seeking an "emerging markets" exposure. Mr Hsu draws upon his personal life as a native of Taiwan, and presents, in an easily readable style, a brief history of China, and a progression to where the merger of capitalism and communism has brought China today. He gives excellent examples of stocks, mostly listed as ADRs on the NYSE, and their respective positive and/or negative attributes. At a cost of only $ 25, less than the brokerage fee on one share trade, this book represents stunning value. Bravo Mr Hsu.

4 of 6 people found the following review helpful:

5.0 out of 5 stars Great information, June 5, 2008

By 

Bill Chapman - See all my reviews

This review is from: China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World (Hardcover)

I have read many other China investing books but I was particularly looking forward to this one mainly because I am a subscriber to Hsu's newsletters as well. I would say this is a good book for anyone interested in China and the opportunities it offers. As a subscriber I enjoyed the more detailed look at themes he merely touches on in his newsletters. Many of the topics he discusses in the book are not found in his other publications, so I was able to enjoy the new information.