China Mobile (CHL): Olympic potential

"Whenever anyone asks, 'Why invest in China?' the answer is very simple: that’s where the money and exponential future growth is," says Jim Trippon.

The editor of The China Stock Digest then asks, "Will China suffers an Oympic hangover?" Here, he explains why that should not happen and why China Mobile (NYSE: CHL) should do well once the games conclude.

"The Bank of China (BOC) conducted a study of the effects of 12 Olympiads on their host countries over the course of 60 years. They found that nine of the twelve Olympic host countries suffered a decline in GDP growth in the eight years after the games.

"The key to a post Olympic slump is the size of the economy. Smaller economies like Korea suffered larger downturns after the games, while larger economies like the United States were not affected at all.

"In smaller economies the enormous investment dedicated to stag