The 2 Best Chinese Stocks to Buy to Play the Nation's $540 Billion E-Commerce Biz

Two of the best Chinese stocks to buy come from the country's surging e-commerce industry - an industry that alone is expected to be worth $540 million by 2015, according to business intelligence firm China Briefing.

Recent numbers reflect this upward trend...

Online-shopping spending in China reached $298 billion last year, easily surpassing U.S. sales of $263 billion. According to German research firm yStats, China's consumer e-commerce market soared more than 60% in 2013.

Just in the second quarter of 2014, the gross merchandise volume (GMV) - the total sales for merchandise sold online - of China's online shopping rose 47.1% to 630 billion yuan, compared to the same period a year earlier, according to a mid-August report from Chinese internet industry consulting firm iResearch. Additionally, the latest data from the National Bureau of Statistics indicated China's consumer goods sales reached 6.2 trillion yuan in the second quarter of 2014, with 10.1% of that being online shopping. That's the first time the online sales total has ever exceeded 10% in a single quarter.

And the Chinese e-commerce industry will continue to grow at a staggering pace.

"Mainland China has leapfrogged the United States to become the biggest e-commerce market on Earth," Money Morning Executive Editor William Patalon III told readers last week. "And over time, China's e-commerce market is only going to get bigger."

The Massive Growth Figures Supporting Chinese E-Commerce Stocks

best chinese stocks to buy

In 2010, the number of online shoppers in the U.S. and in China came in even, around 120 million.

But by 2015, the number of online shoppers in the U.S. will increase to 200 million, while Chinese online shoppers will nearly quadruple to 520 million, according to predictions from media company Strangeloop.

Fueling growth in China's e-commerce market is an insatiable population of more than 1.355 billion (the largest of any country in the world). As it now stands, the country houses more than 600 million internet users and 500 million mobile internet users. And the Chinese government has a target to connect 85% of the population (1.2 billion people) to 3G or 4G mobile internet by 2020.

And with Alibaba Group Holding Ltd. (NYSE: BABA) - China's No. 1 e-commerce player - scheduled to go public soon, investors are suddenly seeing the potential of the country's online marketplace.

The best news is, it's still early in that growth process. That means the best Chinese e-commerce stocks to buy now will bring big gains for investors in coming months.

"China is still very much an online market in development - meaning the profit opportunities are huge," Patalon said. "The impact of social media in China is four times what it is here in the U.S. market."

Last week, Patalon recommended two Chinese e-commerce stocks he predicts will soar. One is a car pricing site that posted a huge earnings beat this month, while the other provides investors with a more diversified approach. You can get both of Patalon's picks - for free - here...

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