Although the Chinese stock market has fallen 40.9% since August 2009, soaring M&A activity in the region suggests that the country's economy is getting close...

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Although the Chinese stock market has fallen 40.9% since August 2009, soaring M&A activity in the region suggests that the country's economy is getting close to reviving its engine of growth - according to Keith Fitz-Gerald, Chief Investment Strategist at Money Morning. Nearly two-thirds of M&A activity in China is occurring in industrials, energy, and power deals - running 31% ahead of last year. Despite the hype surrounding the near-term economic issues, China is still in the early innings of the greatest wealth creation of any nation. Fitz-Gerald recommends re-entering Chinese stocks as the market is currently trading cheap at an average PE of 7.1 and a yield of nearly 5%. In comparison, the S&P 500 has a PE of 18.57 and a yield of 2.07%. Importantly, the yuan will float by 2015 and this will unlock trillions of dollars in trading value that is presently unrecognized. (VIEW LINK)


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