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5 Chinese Stocks to Ride the Reforms

These companies will benefit from the rising consumer class

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E-Commerce China Dangdang (DANG)

Dangdang185Shopping for goods online is something most Americans are comfortable with thanks in large part to (AMZN). Well, China has its own Amazon, and it’s called E-commerce China Dangdang (DANG), or simply Dangdang.

The company now is the largest e-commerce retailer in the country, and it bears quite a resemblance to Amazon. In fact, Dangdang first began as a bookselling site just like Amazon, and then it quickly branched out into selling all sorts of consumer products.

What I think is a great investment thesis here is the potential for huge growth in the years to come. According to a recent report from private equity firm Bain & Company, in 2012, Chinese e-commerce shoppers spent RMB 1.3 trillion online. That number has grown at pace of more than 70% annually since 2009. Bain wrote that it expects this growth to continue, and reach some RMB 3.3 trillion by 2015.

Indeed, the Chinese consumer is increasingly going digital, and DANG is a great way to ride that wave.

Article printed from InvestorPlace Media,

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