Speculating with the China's booming economy

The World Bank expects growth of 7.8% this year and 7.4% in the next and China has a fast growing middle class. But valuations can go far above what is justified and China has problems too: poor corporate governance, shaky legal system, scarcity of information, insolvent banking system, growing social unrest and a potential property bubble (prices have risen as much as 28% in 12 months).

A lot of Asian companies can only be bought through pink sheet stocks, Hong Kong accounts or US-traded mutual funds. Below, a list of some of the companies that are based in China, Hong Kong or other Asian companies that can profit from China's boom:
Anhui Conch Cement Co Ltd (AHCHF.PK)
Tsingtao Brewery Co Ltd (TSGTF.PK and TSGTY.PK) is China's largest brewery selling at 34 times earnings and it is an industry undergoing consolidation. Anheuser-Busch (BUD) is investing on it.
Legend Group Ltd (LGHLY.PK and LGHLF.PK) has 20% of the global market for computer motherboards.
The Bank of East Asia Ltd (BKEAF.PK and BKEAY.PK) is a Hong Kong bank and the most modern network with branches in China.
DBS Group Holdings Ltd (DBSDF.PK, DBSDY.PK and DBSXY.PK) also is a bank with strong presence in China.
Shangri-La Asia Ltd (SHALF.PK and SHALY.PK) runs a popular chain of hotels in China.
Cathay Pacific Airways Ltd (CPCAF.PK and CPCAY.PK) owns a stake in mainland China's Dragonair and its brand is well regarded.
Li & Fung Ltd (LFUGF.PK) and China Resources Enterprise Ltd (CHNRF.PK and CHNRY.PK) are trading and retailing companies that can profit from Chinese consumers' spending.
Singapore Airlines Ltd (SPAAF.PK and SPOAF.PK)
Want Want Holdings Ltd (WWHGF.PK) has a good market share of beverages and snack foods in China.
Neptune Orient Lines Ltd (NPTOF.PK and NPTOY.PK) is a Singapore's prospering shipping company.
LG Chem Ltd (LGCLF.PK and LGCQF.PK) serves China's huge need for chemicals.
Hon Hai Precision Industry Corp Ltd (HNHAY.PK and HNHPF.PK) is a Taiwanese electronics maker with production in China.
Qingling Motors Company Ltd (QGLHF.PK) is a light-truck maker in China.

Now a few companies can be bought in the regular stock markets:
BHP Billiton Ltd (BHP and BBL) and Rio tinto PLC (RTP) are Australian mining companies that can profit from price increases in metals which are needed by the Chinese industry.
China Mobile (CHL) may not grow much, but it is regarded as a solid stock.
PetroChina(PTR)
Sinopec Shanghai PetroChemical Co Ltd(SHI - process crude oil into plastics, fibers, gasoline and diesel, which are in high demand. The stock is still at a small premium to book value and P/E is 14.3)
Yanzhou Coal Mining Co Ltd(YZC)
Aluminium China(ACH - Aluminum sales have grown 11% last quarter and the company raised guidance.)
Brilliance China Automotive Holdings(CBA)
China Petroleum Chemical(SNP)
Netease.com Inc(NTES - Net sales nearly doubled, only 5% of Chinese population is online, just became profitable)
Sina Corp(SINA - Sales more than tripled, gross margin is a fenomenal 70%, just became profitable. It is likely that aggressive institutional investors will now keep a healthy buying pressure on SINA and NTES.)