The huge injection of stimulus funds that has reignited the Chinese economic growth story has also worked wonders for the share price of China Shoto, the supplier of specialist back-up batteries to the telecoms sector in China. Telecoms infrastructure spending continues apace in China and the rebound in economic growth means this is likely to remain the case for some time to come
Many experts expect a tightening in monetary policy in China sooner rather than later, but the economic recovery looks well enough entrenched to give private sector companies the confidence to continue investing. China Shoto shares have risen strongly since we recommended them, but are still well short of broker Seymour Pierce's target price of 500p.
When: 19 February 2010
Price: 295p
Performance to date: +36%
