Are Chinese Stocks on Sale, or Is the Auditing Fallout Just Getting Started?
Last week, a U.S. judge ruled that the Chinese units of the Big Four auditing firms -- Ernst & Young, Deloitte, KPMG, and PricewaterhouseCoopers -- would be barred from auditing U.S.-listed Chinese companies for six months. The decision is being appealed, and it won't be until after the appeal hearing that the ruling could go into effect.
Needless to say, a lot of investors got worried, and Chinese technology stocks in particular fell after the news broke. So what does this mean for investors?
In the video below, Motley Fool contributor Brian Stoffel talks about the approach investors need to take if they're considering buying Chinese technology stocks. Brian also highlights five solid businesses in China that led the sell-off but may now represent attractive buying opportunities.
Profit from China without all the fuss
While buying one of the companies mentioned in Brian's video might sound like a good idea, there are other, safer ways to profit from the growth of the Chinese economy. For instance, there is a coming boom in the Chinese auto market that will be huge!
As Chinese consumers grow richer, savvy investors can take advantage of this once-in-a-lifetime opportunity with the help of this brand-new Motley Fool report that identifies two automakers to buy for a surging Chinese market. It's completely free -- just click here to gain access.
The article Are Chinese Stocks on Sale, or Is the Auditing Fallout Just Getting Started? originally appeared on Fool.com.Fool contributor Brian Stoffel owns shares of Baidu and E-Commerce China Dangdang.. The Motley Fool recommends Baidu and Sina. The Motley Fool owns shares of Baidu and Sina. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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