1.50%

Guangshen Railway ( GSH ) is a passenger and freight railroad between Guangzhou and Shenzhen. The stock has a P/E of 32.42.

rail in china

This is a bonus wildcard. In a five-year plan ending in 2010 the Chinese government is shelling out $161 billion (1.25 trillion yuan) to lay new tracks and acquire equipment to expand the rail system. It is spending an additional $32 billion on rolling stock and locomotives. It may come as a surprise to investors, but China's railays are among the world's busiest. In fact, according to Deutsche Bank, they move 24% of global rail traffic with just 6% of the world's tracks. The supply-demand dichotomy is so great that on average, only one-third of shipment demand is met. According to Forbes, by 2010 the Ministry of Railways aims to have added 10,500 miles (17,000 kilometers) of new track, bringing the country's total to 56,000 miles. The opportunity that comes with such outlays is huge. One problem though - the Chinese government is expected to give a lot of this business to foreign rail road companies in exchange for technology knowledge transfer. So far, GSH has not publicly been awarded a contract, but since it is the only rail road ADR, it is worth a look. The business case here is strong enough that even if GSH is not awarded any of the major development contracts, they will benefit from maintainence and repair contracts.

High growth

long term china play

Trying to capture the growth in China. GSH is building new routes between Beijing and SHenzhen. Lot of growth potential within 2 years.

Dividend

Im trading now

Transportation