As the global economy stabilizes, China looks to grow in 2014 as the government implements structural changes in order to help sustain long-term growth. But before we show you some of the equities on the Chinese stock exchange that look to benefit most in the coming year, let’s take a look at some trends in the largest emerging market in Asian over the past month.

Figures show that the Chinese economy picked up in the second half of 2013. The National Bureau of Statistics (NBS) said that the country’s growth increased to 7.8% in the third quarter of this year, above the government’s full-year target of 7.5%.

Meanwhile, Chinese factory growth remained at an 18-month high last November, with the Purchasing Manager’s index unchanged from October at 51.4. Any number above 50 indicates growth in the manufacturing industry.

In 2014, China’s government looks to implement new microeconomic policies aimed at encouraging reform and innovation, as well as boosting domestic demand in order for companies to better profit from the country’s 1.3 billion consumers.

These three Chinese stocks all have attractive valuation metrics and seem positioned to perform well in the short-term.

Semiconductor Manufacturing International Corp.  (SEHK:0981, NYSE:SMI)

The company engages in computer-aided design, manufacturing, tested and packaging. It is also engaged in the manufacturing and designing of semiconductor masks. The stock is trading at a P/E of 11.72 with long term earnings at 15%.

WuXi PharmaTech  (NYSE:WX)

WuXi Pharmatech is a research and development services company and acts as a contract researcher for large pharmaceutical, biotech and medical device companies. The stock is trading at a P/E of 21.98 and has long term earnings growth of 18%.

Minsheng Banking Corp.  (SEHK: 1988, SSE: 600016)

China Minsheng Bank is the country’s first non-government owned bank. The bank is well known for making loans to small-medium enterprises and has over 200 branches throughout China. The company’s stock has a P/E of 4.68x and an ROE of 26%.

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