Subject: The 5 China stocks currently trading on NYSE

From: "Gray Zhu, 800-289-2498, 212-279-6700" <[email-masked]>
Date: Sat, 25 Jun 94 21:33:45 CDT

==================    IC940625: Investment Club  ======================

The 5 China stocks currently trading on NYSE ................ Gray Zhu
Security analysis (brief) (II)  ............................. Gray Zhu
_______________________________________________________________________
   (be sure to read the Disclaimer in the end if you have not read)

           The 5 China stocks currently trading on NYSE
           ============================================
              (information only, no recommendation)

1. Company: BRILLIANCE CHINA AUTOMOTIVE HOLDINGS LTD (Ticker: CBA)
    (no information)

2. China Fund, Inc. (The) (Ticker: CHN)

    Company is a non-diversified, closed-end investment company whose
    investment objective is long-term capital appreciation which it seeks
    to achieve by investing primarily in equity securities of companies
    for which the principal securities trading market is in the People's
    Republic of China. Co. intends to invest substantially all, but not
    less than 65% of its assets in equity securities of China companies.
    Co. intends to qualify as an investment company under the Internal
    Revenue Code.

3. EK CHOR CHINA MOTORCYCLE (Ticker: EKC)

    Ek Chor China Motorcycle (ECCM) hopes to sell 4.4 mil shares in an
    initial public offering.  The company will use 3/4 of the proceeds for
    capital spending by its subsidiaries and affiliates. ECCM reported a
    net income of $12.8 mil for the yr ended in 12/92. The company's net
    profits increased almost three-fold in 1991 and rose 40% in 1992. The
    demand of motorcycles currently exceeds the supply in China.

4. SHANGHAI PETROCHEMICAL COMPANY LIMITED  (Ticker: SHI)

    Company is the largest petrochemical enterprise and the ninth largest
    industrial enterprise in the People's Republic of China based on 1992
    sales.  Co. is located in Jinshanwei, southwest of Shanghai, and is a
    highly integrated petrochemical complex which processes crude oil into
    a broad range of synthetic fibers, resins and plastics, intermediate
    petrochemicals and petroleum products. In 1992, synthetic fibers
    accounted for 32.1% of net sales, resins and plastics 28.5%,
    intermediate petrochemicals 14.2%, petroleum products 23.1%, and other
    2.1%.  EMPLOYEES- July 23, 1993, apx. 40,000.

5. CHINA TIRE HOLDINGS LTD (Ticker: TIR)

     * China Tire is the second-largest automobile tire producer and
       the third-largest bicycle tire manufacturer in the PRC.
     * The automobile industry has been identified as one of the four
       pillar industries in China, and government directives will assist the
       industry to expand in the near future.
     * In order to capture the anticipated demand for both bias and
       radial tires, China Tire is aggressively expanding its production
       capacity.
     * The company is forecast to produce compound annual net income
       gains of over 30% in the next five years.

              A Brief Introduction to Security Analysis
              =========================================

1. Fundalmental Analysis
2. Technical Analysis

Fundalmental analysis - which company to buy, basically looks at company.
Technical analysis - when to buy, basically looks at the market.

1. Fundalmental Analysis

This type of analysis uses a quantitative approach to market
forecasting based on an analysis of corporate BALANCE SHEET and INCOME
STATEMENT.

BALANCE SHEET gives details of the following items:

               ASSET = LIABILITY + EQUITY 

this just like HOUSE = UNPAID + PAID

INCOME STATEMENT gives details of 

               REVENUE - EXPENSE = NET INCOME (profit/loss)

income statement is sometimes referred as Profit and Loss statement,
or P&L)

There are some numbers which are of importance in security analysis:

Margin of profit
Current ratio
Working capital
Quick ratio
Net worth
Levarage ratio
P/E ratio
Inventory turnover ratio

2. Technical Analysis

You really need historial stock data to plot the "chart" to do
technical analysis. What you need are the price and volume.

Technical analysis is a method of attempting to predict stock price
trends over the near term, generally 4 to 6 weeks. the prediction is
based upon current stock price trends and the relationship of the
present trend to prior trends.

Overbought: When said that the market is overbought, it means that
there has been an extended period of vigrous buying in the market.
with no more buyers to provide demand for the security, it is likely
that future prices will head downward or remain in the horizontal
level until more buyers enter the market.

Oversold: This is the opposite of overbought, i.e., there has been so
much selling that the sellers have run out of securities to sell and
hence, the prices will stablize, or perhaps begin to increase.

Consolidation: During a period of rapidly rising stock prices. If the
market doesn't pause to consolidate the gains, it may become
overbought.

Head and Shoulder: bear trend
Inverted Head and Shoulder: bull tread

Saucer: bull trend
Umbrella: bear trend

Double bottom: bull trend
Double top: bear trend

Support level: price normally above this line
Resistence level: price normally below this line
Break out: when the price movement penetrates the support or
           resistance level.
==========================================================================

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