Three ways to play Chinese inflation

Inflation in China is creeping up. And this is only the beginning, says professional investor Fen Sung, as quantitative easing will only push it higher. Here, he picks three very different stocks that should benefit from rising prices.

Ronald Reagan famously said: "Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man."He was talking about the double-digit inflation experienced at the beginning of his presidency. And if we see double-digit inflation in China, as we did during the early 1990s, then Premier Wen Jia Bao would be wise to heed Reagan's words.

Inflation can creep up on you. Not everyone has noticed that in China it has moved from -1.8% back in July 2009 to +0.6% just recently in November. And this is only the beginning given the amount of quantitative easing (money printing) that has occurred globally, this figure is likely to rise over the next few months.

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Taiwan FertiliserTW$125.5TW$119.5TW$121
China MerchantsHK$30.00HK$11.82HK$28.65
BOC Hong KongHK$19.88HK$6.30HK$16.70