Chinese investors scramble for a bite of Apple

“China’s rigid capital rules ban its citizens from investing directly in Apple Inc but that’s not keeping them from seeking a piece of the iPhone maker’s success by buying shares in its suppliers – and even companies rumored to be suppliers,” Samuel Shen and Kazunori Takada report for Reuters.

“Investors have flocked to the only two China-listed firms that Apple has confirmed as suppliers, sending their valuations to lofty levels, while speculation has become rife in firms thought to be indirectly doing business with the technology giant,” Shen and Takada report. “Suzhou Anjie Technology Co Ltd has jumped more than 30 percent and Warren Buffett-backed carmaker BYD Co Ltd has gained more than 15 percent since mid-January, when they were cited on Apple’s first-ever suppliers’ list. China’s benchmark Shanghai Composite Index is up 5.6 percent for the same period.”

Shen and Takada report, “‘Investors want to share in Apple’s growth as they believe sales of iPhones and iPads will remain strong,’ said Zhou Feng, analyst at Donghai Securities Co. ‘Investing in Apple suppliers is not a bad idea, since they’re the girls hanging out with the rich guy.'”

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