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China Stocks are Down, But Don’t Count All of Asia Out

There have recently been some ugly headlines out of China, including a brutal slide in auto sales for Toyota (NYSE:TM), Mazda and other Japanese car companies. You can blame that on the politics of an island dispute, but the continued contraction in China manufacturing can’t be so easily explained away.

So what’s the story here? Is China really having a hard landing, or is there still opportunity for investors?

InvestorPlace.com contributor Jim Woods weighs in on the opportunities and risks as the China growth story slows down. The bottom line: There are ways to buy the growth without all the risk of pure-play China stocks.

Jim likes multinational stocks that speak to Western tastes, including Starbucks (NASDAQ:SBUX), clothing company Michael Kors (NYSE:KORS) and luxury handbag maker Coach (NYSE:COH).

Other great ways to buy China is through neighboring markets with big business ties to mainland China — including the iShares MSCI Singapore Index Fund ETF (NYSEARCA:EWS),  iShares MSCI Taiwan Index Fund ETF (NYSEARCA:EWT),or the iShares MSCI Hong Kong Index Fund ETF (NYSEARCA:EWH) as an alternative to China stocks.

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Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at editor@investorplace.com or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

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