Out of the many Chinese stocks that are now available to US investors, two stocks that may warrant a look are chemical makers Chemspec International (CPC) and Sinopec Shanghai Petrochemical (SHI).

Just like banks are the most important part of an economy, chemical companies are critical to the growth of other industries. This is simply because most of the items we consume have some of chemicals in them. From drugs to foods to carpets, chemicals are the fundamental building block of the modern life. Hence investors looking to gain some exposure to Chinese growth, can evaluate the following chemical companies for potential long-term investment.

1. Chemspec International (CPC)
Chemspec is a China-based contract manufacturer of specialty chemicals. These chemicals are used in electronics, pharmaceuticals and agrochemicals. The company supplies fluorinated specialty chemicals to a number of international pharmaceutical companies which use them in the manufacture of various drugs.

In 1Q,2010 total sales were RMB220.2 million (US$32.3 million), an increase of 9.7% from the same quarter of last year.Chemspec is a mid-cap stock with a market cap of about $281 M. The current dividend yield is about 2.27%.

2. Sinopec Shanghai petrochemical (SHI).
Sinopec is a petrochemical company that “processes crude oil into a range of products, including synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products. It principally operates in four operating segments: synthetic fibers, resins and plastics, intermediate petrochemicals and petroleum products.” Sinopec is the largest ethylene producer by capacity in China and is also Asia’s largest oil refiner.

The current market cap is about $948M and the yield is 1.04%. JP Morgan has over 7% stake in Sinopec.