With all the attention being focused on the 2008 Olympics in Beijing, investors are also refocusing on Chinese stocks. However, in order to reduce risk, investors prefer the stocks that pay dividends.

So we thought we would at least provide a snapshot of the top-yielding Chinese stocks.

While you have to consider more than just yield, especially when considering Chinese companies, it is not a bad place to start given the volatility in that market.

If you are looking to diversify out of the U.S. and are considering China, take a look at some of these names.

For ideas on how to diversify out of the U.S. and into China, please click here.


Yazhou Coal Mining (YZC) is involved in the mining, transportation, and sale of coal. The stock has a P/E of 3.27, a PEG of 2.21 and a yield of 7.7%.

Huaneng Power International (HNP) is a regional electric utility. The stock has a P/E of 10.67, a PEG of 3.34 and a yield of 6.0%.

Aluminum Corp. of China (ACH) is in the business of bauxite mining, alumina refining, and aluminum smelting. The stock has a P/E of 3.06, a PEG of 0.52 and a yield of 4.7% .

Sinopec Shanghai (SHI) produces petroleum products, petrochemicals and plastics. The stock has a P/E of 44.23 and a yield of 4.0%.

Petrochina (PTR) explores for and produces petroleum and natural gas. The stock has a P/E of 12.08, a PEG of 0.84 and a yield of 3.7%.

China Mobile Limited (CHL) is a mobile telecommunications company. The stock has a P/E of 21.64 and a yield of 2.7%.

China Telecom (CHA) is a provider of wireline telecommunications and broadband services. The stock has a P/E of 12.55, a PEG of 2.53 and a yield of 2.0%.

China Petroleum & Chemical (SNP) is an an integrated oil and gas and chemical company. The stock has a P/E of 15.29, a PEG of 0.5 and a yield of 1.9%.

China Life Insurance (LFC) is a provider of life insurance and annuities. The stock has a P/E of 7.78, a PEG of 0.19 and a yield of 1.6%.

China Unicom (CHU) is an an integrated telecommunications provider. The stock has a P/E of 18.76, a PEG of 1.54 and a yield of 1.4%.

For an Excel database of over 50 Chinese stocks that can be downloaded, changed and sorted, go to WallStreetNewsNetwork.com.


A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Stocks related to drilling the Marcellus Shale

MLPS with yields above 7%

Microcaps trading for less than tangible book

Stocks that do well after Hurricanes

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other
hedge fund managers on my list.


Updated from Aug. 11, 2008