That’s not a money printer, but it might as well be.
Since Chinese law prevents its citizens from purchasing Apple stock, individuals and firms interested in cashing in on the American brand’s massive popularity are having to do so indirectly. According to Reuters, that means folks are buying up stock in various China-based Apple suppliers:
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.
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.
Donghai Securities analyst Zhou Feng simplifies the situation, throwing in a cute (if less than apt) analogy for good measure:
Investors want to share in Apple’s growth as they believe sales of iPhones and iPads will remain strong. Investing in Apple suppliers is not a bad idea, since they’re the girls hanging out with the rich guy.
Of course, it’s not just that pair of suppliers who are seeing heightened public and financial interest. Says Kelly Hodgkins of TUAW,
Even companies rumored to be an Apple supplier are benefitting from this enthusiasm for anything related to the Cupertino company.
With Apple’s excellent quarterly earnings announced earlier today, don’t expect the Asian trend to slow down anytime in the near future. Like Tim Cook said, there is no end in sight.