When I see US Economy stuck and China Economy growing 10% pace my simple mind thinks:

1) I want to invest in China rather than in the US

2) I don’t want to invest in a Chinese company which exports to US

So I wonder… what will Chinese people spend on, as soon as they have some money in their pockets. The answer is easy. First on Cell phone, second on Health-care. Since I already am an happy owner of (CHL) China Mobile, China’s largest Cell Phone company, I should look at the Medical business.

CMED is a (healthy) health care company. China Medical Technologies provides tools for medical analysis, specially connected with fertility problems. CMED is quite expensive with Trailing P/E: 26 and Forward P/E: 15. What is interesting is the fact that China Medical Technologies is growing its Revenues 74.30% year on year. Earnings had a slower growth of 17.50%, but that is probably because the company is now mainly focused in gaining market shares and growing. CMED also pays a 1.00% dividend yield which is nice for such growth company.

MR is a larger than CME. Mindray had a nice growth: 8% yoy revenue growth 46% earnings growth yoy are strong and interesting. The fact that Mindray owns $313.84M of cash, about 8% of its Market Cap, is also pretty good.

(SCR) Simcere Pharmaceutical mainly produces generic pharmaceuticals which are good specially in an overpopulated and still poor country like China. Current P/E around 15 is an honest price-tag for a company that grew with Qtrly Revenue Growth (yoy):26.40% and Qtrly Earnings Growth (yoy):67.50%. Also 130 Millions cash are great news for a company that is valued as a whole 770 Million Market Cap.

(SSRX) 3SBIO is a Chinese biotech company that does biotech research for new pharmaceuticals. At 3SBIO they have already developed two good one:s EPIAO and TPIAO for blood diseases. Those two already guarantee Trailing P/E (yoy):16 and Forward P/E:12 which are excellent for a company that still plenty of cash for new research: SSRX owns 115.71M cash, more than half the market CAP 197.72M.

Market Cap: 195.99M. Meaning that half of this company’s price is made by cash.

(WX) WuXi Pharmatech is a Chinese – American company that offers services and products to Biotech research companies. I don’t like it because, from what I understood, it doesn’t do its own research, but gets pay by other biotech companies to help them. This should mean WX will never hit a Bingo. Also it is quite expensive, compared to the above: Trailing P/E :32.24, Forward P/E: 18.68. I must admit growth rates are impressing: Qtrly Revenue Growth (yoy):68.70%, Qtrly Earnings Growth :131.90%.