 Good day, fellow investors. One of the largest fears circulating in the investment environment in the last few years since 2015 has been that China will experience hard landing, so that the growth will be much slower, which will lower demand for commodities, which will impact the whole world and probably lead it into a recession. However, China is still growing above 6% and the latest economic data shows that China has beaten expectations. The second quarter of 2017, China has grown at 6.9%, which is higher than expected 6.8%, and we can see that the slowdown in the Chinese economic growth has reverted to growth again. This is huge news because it derisks the country, it eliminates the fears that have led to very low valuations and to very cheap stocks. I have been very bullish on China for the last two years because a country that's growing at 6 or just 5% what were the fears is still a country that's growing at 5% and much better than a country or a continent like Europe growing at below 2%. So the market always likes to compare the trends, but 5% growth will always be better than 1.5% growth. So I'll leave that to the markets and what they think I'll look at the fundamentals and the macroeconomics to make my investment decisions. What's very important for China is that its GDP is just one seventh of the US GDP, so there's plenty of room to grow. Of course growth won't be linear, but it for sure will be there for the next one, two, three decades. So I think every portfolio should be exposed to China. Now this positive economic trend going on in China has improved the perception that the market has about Chinese stocks and Chinese stocks are up about 30% year to date, which is an excellent performance. Now 40% up is great, is it now overvalued or Chinese stocks are still undervalued. Let's see. I have here made a table with the top 10 holdings of the China ice shares ETF and as you can see price earnings ratios differ and the growth differs. Tencent, Alibaba and NetEase have growth rates of above 50% and their price earnings ratios are 50, 60 and 21 respectively. There are companies however that have growth rates around 0 and a few percentage points and their price earnings ratio are around 6. Those are mostly banks with dividend yields of 5%. Normal companies with growth rates of around 15% for pink insurance and 6% for China Mobile have price earnings ratios of 13 and nice dividend yields of 1.6 and 3.3 respectively. So price earnings ratio of 6 for a stable company, for a stable bank, price earnings ratio of 13 for a company growing from 6 to 15% per year, that's still extremely undervalued. Even if we compare the growth companies, the Alibaba, the Tencent with Amazon that has a price earnings ratio of 188, those growth companies growing at 50% per year are still very cheap when compared to their price earnings ratios of just 50. So in general the Chinese market is very very undervalued, still undervalued and has plenty of room to grow, especially as the inflection in economic growth in the trend will bring much positivity to the market, perhaps even euphoria in the next year too if the trend continues, which is all a self-reinforcing cycle. So we might see really the Chinese market boom in the next year too free, especially as its fundamentals are still very very undervalued. So we have an economy that's growing 7% a year, its GDP per capita is just one seventh of the U.S. so huge margin of growth and its stocks are very undervalued. Price earnings ratios of 5.6 dividend yields of 5% provide a huge margin of safety or growth rates of 50% are extreme bargains at valuations around 50. If you put two years of growth of 50% after two years the price earnings ratio of 50 is just 12.5 so it's a huge bargain. Therefore really digging to China there is still plenty of room, we'll continue with our series on Chinese stocks we have already covered free, I'll be soon making a few videos where I cover additional Chinese stocks so please subscribe to be noted when a video comes out leave your comments below share your knowledge on interesting Chinese stocks and I'll see you in the next video