Deeply Undervalued

As of August 12, 2011 there are approximately 40,334,892 shares outstanding and with CDII publicly announcing net income esimates of $12 million USD for the fiscal year... earnings per share (EPS) is around $0.30 cents  Based on yesterday's closing price of $0.88 the current price to earnings ratio  for CDII is 2.9 current years earnings.  That is insultingly cheap for a US company.  The problem is that CDII is being lumped together with other Chinese companies trading in the market while in fact it is really a US company doing business in China. 

Q3 Results

For the third quarter of fiscal 2011 total revenues increased to $57.0MM up 78% compared to total revenues of $31.9MM recorded in the third quarter of fiscal 2010. Net income attributable to common stockholders was $4.3MM in the third quarter of fiscal 2011 compared to a net loss of ($1.1MM) in the comparable period of fiscal 2010. Consolidated earnings per share of $0.11 in the third quarter of fiscal 2011 compared to loss of ($0.04) per share in the third quarter of fiscal 2010. For the first nine months of fiscal 2011 net income was $7.0MM or $0.20 per share on 35 million weighted average shares as compared to net loss of ($492,000) or ($0.02) per basic and diluted share on 29 million weighted average shares in the comparable period in fiscal 2010.

This quarter has been the best so far this fiscal year with 61.4% of the nine months net income being produced in these past three months. Going forward the company has already stated they expect to achieve revenues over $200MM and net income to be approximately $12MM for the fiscal year. Considering that we are a few months away from the end of CDII's fiscal year it would appear that the the company should achieve its revenue and net income targets.

Deeply Undervalued

As of June 30, 2011 there are approximately 37.8 million shares outstanding and with CDII achieving net income of $12MM for the fiscal year... earnings per share (EPS) is around $0.32 cents Based on today's closing price of $1.05 the current price to earnings ratio for CDII is 3.25 current years earnings. That is insultingly cheap for a US company. The problem is that CDII is being lumped together with other Chinese companies trading in the market while in fact it is really a US company doing business in China.

Shares of China Direct are currently trading at $0.94 per share and with 35.31 million shares outstanding entire company is worth just $33.19 million dollars. As of the most recent quarter ending March 31, 2011 CDII had $9.4 million in cash and $12.8 million in marketable securities. The stock market is currently valuing the operations at $10.99 million. This is a company that has again and again reiterated guidance that revenue for the full 2011 fiscal year will be $180 to $200MM with net income of $12MM.

Here is the absolute key to China Direct (CDII)...This is an American company doing business in China and not just a Chinese company listed on a U.S. exchange. China Vesting has actually visited CDII's Florida headquarters and met with the company's entire senior management team. This was not enough...we then visited CDII's Shanghai headquarters and spent considerable time with the company Chairman/CEO and CDII's China team.

For American investors there is a peace of mind in knowing the people behind this company doing most of their business China live in the U.S., have their families in the U.S., and also are held to U.S. standards across the board. When the dust settles in this space China Direct will be one of the companies that will not only survive but thrive and reward its loyal shareholders.

At $0.89 per share the entire company is worth just $31.43 million dollars. As of the most recent quarter ending March 31, 2011 CDII had $9.4 million in cash and $12.8 million in marketable securities. That means the market is currently valuing the operations at $9.23 million. To remind readers... China Direct expects revenue for the full 2011 fiscal year of $180 to $200MM with net income of $12MM. At some point it... and the point is probably now... the company should just go private and conduct an IPO on Nasdaq in a few years. What would it cost to build a business producing the kind of numbers CDII will in 2011? Don't just take it from us...call China Direct at its Florida headquarters and find out for yourself at 1-877-China-57.

Meanwhile China Direct continues to do impress on the operational front. The company announced today that its magnesium segment operations received new purchase contracts valued at approximately $19.2 million in the first two months of the third quarter of fiscal 2011 that began on April 1, 2011. Deliveries of these new orders are expected to take place throughout the remainder of fiscal 2011 and into the first quarter of fiscal 2012.

It is important to understand that China Direct (CDII) is an American company doing business in China and not just a Chinese company listed on a U.S. exchange. China Vesting has actually visited CDII's Florida headquarters and met with the company's entire senior management team. We then visited CDII's Shanghai headquarters located right by the famous Jin Jiang Hotel in Shanghai and spent considerable time with the company Chairman/CEO and CDII's China team. It is impossible not to see some strange things in China when you've visited hundreds of cities and companies. We can tell you one thing, there is a peace of mind in knowing the people behind this Chinese company live in the U.S., have their families in the U.S., and also are held to U.S. standards across the board.

The stock has settled down and closed Monday at $1.31 per share which incidentally is also the same price as its 50 and 200 day moving average. China Vesting believes that the current valuation of 3.86 times 2011 earnings estimate of $12MM represents potential value for investors. Based on 35,313,390 shares outstanding and $1.31 per share the whole company is being valued at $46.26MM USD. In CDII's Fiscal Q2 conference call, management reiterated earnings of $12MM and revenue ranging from the original $180MM as discussed last quarter, to a range of $180 to $200MM. (Link to Q2 Conference Call Transcript)

Focus On Q2

In looking over CDII's Fiscal Q2 Filing (Link to Q2 SEC Filing) these are some of the highlights:

• For the second quarter of fiscal 2011 total revenues increased to $42.3MM up 81% compared to total revenues of $23.4MM recorded in the second quarter of fiscal 2010. We recorded operating income of $96,000 for our second quarter of fiscal 2011 as compared to an operating loss of ($480,000) in the second quarter of fiscal 2010.
• For the first six months of fiscal 2011 we recorded net income attributable to common stockholders of $2.8MM.
• At March 31, 2011, our total assets were $112.0MM and shareholder equity was $63.0MM with 35.3 million shares outstanding.
• Revenue of $88MM for the first six months of fiscal 2011 ended March 31, 2011, up 93% from revenues with $45.6MM recorded in the first six months of fiscal 2010.
• Over $20.6MM in cash and prepaid expenses, along with over $45.2MM in working capital.

The most imporant words that we heard and read is that China Direct expects revenue for the full 2011 fiscal year of $180 to $200MM with net income of $12MM. That means from April 1 until the end of September CDII will generate $9MM in net income. In the conference call Amit Dayal of Rodman & Renshaw actually asks the company to explain how they will accomplish this benchmark. CFO Andrew Wang explained that 1/3 will come from the Magnesium business, 1/3 from the basic materials sector and 1/3 from the consulting side of China Direct.

Buy China With An American Warranty

It is important to understand that China Direct (CDII) is an American company doing business in China and not just a Chinese company listed on a U.S. exchange. China Vesting has actually visited CDII's Florida headquarters and met with the company's entire senior management team. We then visited CDII's Shanghai headquarters located right by the famous Jin Jiang Hotel in Shanghai and spent considerable time with the company Chairman/CEO and CDII's China team. It is impossible not to see some strange things in China when you've visited hundreds of cities and companies. We can tell you one thing, there is a peace of mind in knowing the people behind this Chinese company live in the U.S., have their families in the U.S., and also are held to U.S. standards across the board.

During this past quarter we have seen numerous Chinese companies get charged with fraud and/or accused by short sellers of being a scam, and/or having its shares halted by the authorities. The scrutiny is increasing and Chinese companies cheating American investors are going to pay the price. That is exactly why China Direct offers a much needed relief from the anxiety of owning a pure Chinese company.

Call the company at 1-877-China-57 and talk to the management team, read CDII's SEC Filings and see how the company files U.S. taxes with the IRS and also files Chinese tax reports.

In today's edition we want to present a company that was recently introduced to us by a reader. Sunwin International (OTCBB:SUWN) is one of the largest producers and sellers of high quality stevia extracts which is used as a sugar substitute. The company actually has their products for sale here in the United States. China Vesting was able to find Sunwin's OnlySweet product on Amazon.com (link) for sale. We even took a snapshot of the screen for our records.

Sunwin is currently a penny stock that could qualify for an upgrade to the Nasdaq or NYSE AMEX if the company reverse splits its stock. Shares of Sunwin are trading at $0.25 and with 155.52 million shares outstanding the market cap is $38.88M. As of the last quarter ended Sept 30, 2010 cash and equivalents stood at $10M.

This morning Sunwin announced that its Qufu, China production facilities have received ISO 22000 and ISO 9001:2008 integrated process and systems certifications in addition to HACCP (Hazard Analysis and Critical Control Points) certification from SGS for its stevia production facility. This certification along with having its products sold in the U.S. will go a long way towards establishing that Sunwin is viable. SUWN is not currently included in any of China Vesting's indexes but the company is one to watch.

http://finance.yahoo.com/news/China-Direct-Industries-iw-2913630833.html?x=0&.v=1

Fact: China is booming Fact: You cannot afford not be invested in China Fact: There are many great Chinese companies to invest in Fact: If you invest in the wrong Chinese Company you could lose everything and in a hurry Fact: It seems like every week one Chinese Company blows up due to allegations of accounting fraud or some sort of corporate malfeasance

China Vesting has visited hundreds of cities in China and have met with hundreds of companies and corporate executives. Our team makes field visits to Chinese companies every month. We have an incredible local network to assist in our due diligence. Then there are the bankers, auditors, IR firms and everyone in between who help us gain a clear picture on Chinese companies that are listed in the U.S. markets. The company China Vesting is featuring today we regard as one of our easiest assignments.

Commodities, Commodities and BRAIN TRUST?!?

On paper China Direct Industries (NASDAQ:CDII) looks like every other Chinese stock trading at a PE of 2 or 3 or 4. The company operates two main segments, magnesium and basic materials. The magnesium segment produces and distributes various magnesium products while the basic materials segment is involved in the sale and distribution of industrial grade synthetic chemicals, steel and non-ferrous metals. CDII also offers consulting services to Chinese companies that are already public or are looking to go public in the U.S. markets. So what's the attraction you ask? The company is based in Florida and the Chairman/Chief Executive Officer, Chief Financial Officer, and most of the senior management team are all American Citizens living in America. That means this Chinese public company is in reality American and it can and will be held accountable for its actions.

An American Company Operating In China

China Vesting has actually visited CDII's Florida headquarters and met with the company's entire senior management team. We then visited CDII's Shanghai headquarters located right by the famous Jin Jiang Hotel in Shanghai and spent considerable time with the company Chairman/CEO and CDII's China team. It is impossible not to see some strange things in China when you've visited hundreds of cities and companies. We can tell you one thing, there is a peace of mind in knowing the people behind this Chinese company live in the U.S., have their families in the U.S., and also are held to U.S. standards across the board. China Vesting has upgraded CDII to our Dragon Undervalued Index because the company deserves a higher valuation based on the fact it is American.

Undervalued By Any Standard

China Direct has very impressive numbers providing Wall Street guidance with revenue for the full 2011 fiscal year of $180 million with net income of $12 million. Cash and cash equivalents is currently $8.1 million with an additional $12.4 million in prepaid expenses. The company has almost no long-term debt. CDII has $35 million in working capital and is not in need of raising any additional capital.

The stock closed the day at $1.35 per share and with 34.98 million shares out the company's entire value is $47.22 million. The $12 million in net income means the current PE is 3.94 which we believe is cheaper than any USA company we could find in any sector. If you subtract the $8.1 million in cash along with the $12.4 million in prepaid expense the company's value is really just $26.02 million. Considering that the working capital is $35 million one can say that CDII is being given a NEGATIVE value for their business. Think about how much money it would cost in the U.S. to build a company with $180 million in revenue with $12 million in net income. Then factor in the cash on the balance sheet of $8.1 million, the $12.4 million in prepaid expenses and the $35 million in working capital.

This is truly the Best Chinese Company in America.

International testing experts believe that in recent years, teaching professions in China has rapidly climbed up the ladder of preferred occupations resulting in increased salaries. In Shanghai, the authorities have undertaken important curricular reforms, and educators have been granted more freedom to experiment.

The China 100 Stock Index closed this week at 925.32 (+5.75%). China Shenghuo Pharmaceutical Holdings, Inc. led the gainers up 28.30%. L & L Energy, Inc. was the biggest loser down (18.51%).

Biggest Gainers For The Week

China Shenghuo Pharmaceutical Holdings, Inc. (KUN) closed this week with a bullish gain of +28.30% after the pharmaceutical, nutritional and cosmetic product company in the People's Republic of China announced that the NYSE Amex LLC has accepted the Company's plan of compliance for continued listing. With a +21.32% gain, the China Biologic Products, Inc. (CBPO) Board of Directors appointed Mr. Stanley Lau as the new President of the Company. Mr. Lau's duties include overseeing strategic planning and business development, partnership management and organization development.

Yanglin Soybean, Inc. (YSYB) finished with a gain of +15.38%. A leap of investor confidence yanks the soybean manufacturing company out of the loser's list shortly after issuing a press release announcing its unaudited financial results for the third quarter of 2010.

China-Biotics, Inc. (CHBT) finished this week up +12.04% after the leading developer and distributor of probiotics products publicized that it has redeemed $25 million in outstanding 4% senior convertible promissory notes for cash two days before the December 11, 2010 maturity date.

Another gainer this week was 3SBio (SSRX) up +8.84%. The leading biotechnology company focused on biopharmaceutical products received worldwide rights to a clinical-stage treatment for gout from EnzymeRx of New Jersey for $6.25 million. The company aims to develop the drug for use in China, while out-licensing the drug to partners for development in other countries.

Biggest Losers For The Week

The largest drop amongst the bearish companies is L & L Energy, Inc. (LLEN) with a loss of -18.51%. The U.S.-based company that operates coal mining and distribution businesses throughout China, recently announced preliminary financial results for its fiscal 2011 second quarter which ended October 31, 2010.

This was a bad week for China Education Alliance Inc. (CEU) with a loss of -16.92% after announcing that the Company will hold its annual meeting of stockholders on Monday, December 20, 2010. The class action lawsuits are piling up, this week the Rosen Law Firm, P.A. announced that it has filed a class action lawsuit on behalf of investors who purchased the common stock from the education resource and services company.

With a -10.65% decline, CDC Corp. (CHINA) makes the list of weekly losers after the leading hybrid enterprise software, IT Services, and New Media assets, released financial results for the quarter ended Sept. 30, 2010. The company reported Non-GAAP revenue of $79.6 million and Adjusted EBITDA of $7.0 million. For the 9 months ending Sept. 30, 2010, Adjusted EBITDA was $24.6 million compared to $28.6 million in the same period a year earlier.

QKL Stores Inc. (QKLS) experienced a drop of -10.47%. The leading regional supermarket chain reported opening two new stores. The Company's 41st store is located in the center of the business district in Yitong county. The Company's 42nd store is stationed in center of the business district Changtu county, Liaoning Province.

Zhongpin, Inc. (HOGS) closes out the losers list. A leading meat and food processor in China finished the week with a -9.78% decline. Given the recent measures issued by China's State Council, the leading meat processing company in China commented on the outlook for hog and pork prices. With hog supply and demand are in balance, the trend for hog prices is expected to be steady by the end of this year.

The China 100 Stock Index closes at 924.43 (+1.41%). L & L International Holdings leads the gainers up 23.70%. Yanglin Soybean, Inc. was the biggest loser down (74.00%).

Biggest Gainers For The Week

L & L International Holdings (LLEN) closed this week with a bullish gain of +23.70% after the coal mining and distribution business announced an agreement to provide a secured bridge loan to Bowie Resources, LLC which owns and operates a Colorado based coal mine. L&L will provide $3 million in loans as initial funding that will be used to fund Bowie's ongoing coal mining operations.

With a +17.75% gain, China Education Alliance Inc. (CEU) fought back against fraud charges by having their auditors perform a check on their cash balances. The company also stated that this year's annual meeting of stockholders will be held on Monday, December 20, 2010.

China Mass Media Corp. (CMM) finished the week with a gain of +14.66%. The independent television advertising company in the People's Republic of China was recently audited by the acclaimed Big Four firm PricewaterhouseCoopers. China Mass Media has earned a little more than $3 million and generated more than $15 million of free cash flow.

Suntech Power Holdings (STP) finished this week up +14.03% after Auriga USA has upgraded Suntech holdings from buy hold to raising its price-target on the Chinese solar panel maker to $11 from $9.

Another double digit gainer is Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) up +10.92%. Sales and profits are at the top of their game as continued demand for chips is utilized everything ranging from cars to computers, smartphones and gaming consoles has hustled the market. The particularly strong sales are packages which are used in gaming devices and T.V.s.

Biggest Loser For The Week

The largest drop amongst the bearish companies is Yanglin Soybean, Inc. (YSYB) with a loss of -74.00%. A huge disappointment and drop in confidence after the soybean manufacturing company issued a press release announcing its unaudited financial results for the third quarter of 2010.

A-Power Energy Generation Systems, Ltd. (APWR) experienced a drop of -26.15%. Falling well short of analysts' expectations, shares of the energy company plunged Wednesday after it reporting a larger third-quarter loss than a year ago.

This was a bearish week for Cninsure Inc. (CISG) with a loss of -23.04% after the Chinese insurance and claims service provider announced a $100 million buy back of its U.S.-traded shares. The repurchase will take place by June 30 and funded with available cash. This event is to demonstrate the company's confidence in its long-term growth prospects.

With a -21.21% decline, China Architectural Engineering, Inc. (CAEI) makes the list of weekly losers after recently announcing its financial results for the third quarter. The self-developer of online games and a provider of high-end building envelope architectural systems showed a decrease of $21.2 million, or 83%, from $25.6 million for the comparable period in 2009.

China BAK Battery, Inc. (CBAK) closes out the losers list. The maker of lithium-based batteries finish the week with a -17.76% decline. Chief Financial Officer Jon Zuo resigned for personal reasons. Succeeding Zuo on an interim basis is Marcus Cui, China Bak's director of investor relations.

With rising incomes, people could afford better food, clothing and shelter. But they were also exposed to more disease because so many of them were moving to cities. Yet, obesity is rising. Pollution is terrible. With relatively cheap investments in public health, like sanitation, and on the spread of scientific methods, for the Chinese, cancer has displaced strokes as the leading cause of death, partly because of pollution.

The China 100 Stock Index closes at 936.20 +7.19 (.77%). Orient Paper Inc. leads the gainers up (26.11%). Telestone Technologies Corp. was the biggest loser down (19.79%).

Biggest Gainers For The Week

Orient Paper Inc. (ONP) closed this week with a bullish gain of +26.11% after the paper company released a statement claiming the investigation into allegations that it had overstated its revenue had concluded.

With a +24.47% gain, Synutra International Inc. (SYUT) earlier in the month announced that the company will attend Citi's HK/China Mini Conference to be held on November 22-23, 2010 in Hong Kong. Looks like the conference was promising for the leading infant formula company and a producer, marketer and seller of nutritional products for infants, children and adults.

China Shenghuo Pharmaceutical Holdings, Inc. (KUN) finished with a gain of +24.14%. Filing SEC form 8 notice for failing to satisfy a continued listing, the company just released the management's discussion and analysis of financial condition and results of their operations. The company also announced last week its financial results for the third fiscal quarter ending September 30, 2010.

Asia Cork, Inc. (AKRK) finished this week up +14.29% after the leading cork products manufacturer in Asia recently signed a strategic agreement with Ferma Wood Flooring for its utilization of the North American market. The companies agreed to establish a new joint venture under the name of "Elegant Cork" with the objective to sell cork products manufactured by Asia Cork.

Another double digit gainer is Sinovac Biotech Ltd. (SVA) up +13.07%. The leading provider of Chinese biopharmaceutical products announced last week its unaudited financial results for the third quarter ending September 30, 2010.

Biggest Losers For The Week

The largest drop amongst the bearish companies is Telestone Technologies Corp. (TSTC) with a loss of -19.79%. The leading supplier of local access network solutions for communications networks in China, announced Wednesday that it had priced its public offering of 1,675,000 shares of common stock. The offering is expected to settle and close on November 30, 2010, subject to customary closing conditions.

China Organic Agriculture, Inc. (CNOA) experienced a drop of -18.00% after the trading and distribution of agricultural products company announced its financial results for the third quarter ending September 30, 2010. Gross profit reported $8.8 million in comparison to $11.1 million in the third quarter of 2009.

This was a bearish week for AirMedia Group Inc. (AMCN) with a loss of -14.37% after the leading operator of advertising platforms targeting mid-to-high-end consumers announced that it recently renewed its concession rights contract with Beijing Capital Airport Advertising Co., Ltd. to operate digital frames and digital TV screens from January 1, 2011 to December 31, 2015.

With a -10.67% decline, Tiens Biotech Group USA Inc. (TBV) makes the list of weekly losers after recently appointing the daughter of the Chairman, Chief Executive Officer, President and Acting Chief Financial Officer of the Company, Jinyuan Li. Tiens Biotech Group, Inc. choose Baolan Li to the board of directors of the company just last month.

China Kangtai Cactus Bio-Tech Inc. (CKGT) closes out the losers list with a -8.65% decline. The developer, manufacturer and marketer of cactus-based products in China, announced recently about initiation of business negotiations with Taiwan Tong He Mai Bio-tech Inc, a well-known health care products manufacturer in Taiwan.

China is self-sustained in most foods and has an enormous trade surplus accumulating foreign reserves reaching $2.65 trillion at the end of September. Last week, in another attempt against inflation, Beijing ordered commercial banks to put more of their assets in low-yield accounts at the central bank. The measure was meant to cool a frenzy of lending over the last two years that has priced urban real estate beyond the reach of most working-class families.

The China 100 Stock Index closed the week at 938.40 +12.48 (1.35%). Orient Paper Inc., leads the gainers up 27.17%. QKL Stores Inc. was the biggest loser down (28.81%).

Biggest Gainers For The Week

Orient Paper Inc. (ONP) closed this week with a bullish gain of +27.17%. The leading manufacturer and distributor of diversified paper products announced its unaudited financial results of operations for their third quarter ending September 30, 2010. The demand for paper products in China stays consistently healthy during the third quarter.

SinoHub, Inc. (SIHI) saw its shares gain +16.09% this week. The rapidly growing electronics company in China engaged in electronic component sales, custom design mobile phone manufacturing and sales, and electronic component supply chain management (SCM) services recently reported Q3 results.

Universal Travel Group (UTA) finished this week up +11.78% after leading travel services announced third quarter 2010 results. The company also just held a conference call on November 16, 2010, to discuss the company's successful financial results.

Another double digit gainer is Biostar Pharmaceuticals, Inc. (BSPM) was up +11.27%. The leading over-the-counter Hepatitis B medicine company recently announced their fruitful financial results for the third quarter ending September 30, 2010. Quarter three revenue increased 29.7% to $20.2 million with $8.7 million cash flows from operations year-to-date.

China Shenghuo Pharmaceutical Holdings, Inc. (KUN) finished with a gain of +10.71%. Last month filing the SEC form 8 notice for failing to satisfy a continued listing, the company just released the management's discussion and analysis of financial condition and results of their operations. The company also announced Monday its financial results for the third fiscal quarter ending September 30, 2010.

Biggest Losers For The Week

The largest drop amongst the bearish companies is QKL Stores Inc. (QKLS) with a loss of -28.41%. The leading regional supermarket chain in Northeastern China announced its unfavorable financial third quarter results. Third quarter net income was approximately $1.0 million, compared with net loss of $29.3 million for the three months ended September 30, 2009.

RINO International Corporation (RINO) experienced a drop of -19.60%. after the clean-technology firm's auditors found problems with its accounting and it authorized the hiring of an external law firm to conduct an independent investigation.

This was a bearish week for China Valves Technology, Inc. (CVVT) with a loss of -18.46% after attorneys at Brower Piven announced that they are encouraging investors who lost an excess of $100,000 from investments with RINO International Corporation to inquire about the lead plaintiff position in securities fraud class action lawsuit before the lead plaintiff deadline: January 11, 2011.

With a -17.54% decline, Perfect World Co., Ltd. (PWRD) makes the list of weekly losers. Despite announcing its recent business developments, the leading online game developer and operator has their shares take a dive after reporting a sharp drop in earnings for the third quarter.

Asia Cork, Inc. (AKRK) closes out the losers list with a -16.67% decline. The leading cork products manufacturer in Asia recently signed a strategic agreement with Ferma Wood Flooring for its utilization of the North American market. The companies agreed to establish a new joint venture under the name of "Elegant Cork" with the objective to sell cork products manufactured by Asia Cork.

Based on today's (11-19-2010) closing price of $3.03 per share, China Vesting believes BSPM represents deep value for investors interested in gaining some exposure to the China drug industry. Our timing could have been better if we released this report just a little earlier because the stock was up $0.35 or 13.06% today due to coverage being initiated by Rodman and Renshaw. However, even with today's gain the valuation is still incredibly attractive. Let's run through the numbers...

Focus On Valuation

There are currently 26,876,864 shares of Biostar outstanding and at $3.03 per share the market capitalization is $81.44 million. The company announced Q3 financials on Monday (press release) and reiterated revenues of $80 million for 2010 with net income of $18 million. The stock actually traded down after Q3 numbers were released because previous net income estimates were $18-$20 million. Despite guidance that is on the lower range the current 2010 PE is still a very low 4.52.

The next part is where it gets interesting...unlike most China stocks BSPM actually has ample cash on its balance sheet to the tune of $16.6 million with no debt! If we back out the cash from Biostar's market cap we have an enterprise value of $64.84 million divided by $18 million we get an Enterprise Value to Earnings ratio of 3.60. Now that is pretty cheap and not something any of us will find for an American based company trading on a U.S. exchange. Most of the China companies trading on U.S. exchanges thirst for more capital but in the case of Biostar the company actually generates a lot of cash.

Biostar's valuation would make a lot of sense as a private equity deal where the company was taken private or even a leveraged buyout organized by management. Here's the math....assuming someone offered $4.00 per share...an almost 33% premium to the current market price... to buyout BSPM. The valuation would be $107.5 million...with an interest rate of 8% the annual interest expense would be around $8.5 million. That means an additional $10 million a year in profits would be used to pay down the debt. Then add in the existing $16.6 million in cash and the deal pays for itself in less than five years if the company continues to grow. Ok..we are going to be lazy and not run the full calculations on a potential deal to take BSPM private. The point is to illustrate that the company's valuation is extremely undervalued.

We are even not sure if the Chairman /CEO of Biostar knows any of this finance mumbo jumbo but.....the CFO definitely does.

Surprise...A Real CFO

Normally, China Vesting would never have a section titled what is written above...but we've met or have spoken to way too many Chinese companies who have CFOs that have no idea what is going. Many Chinese companies are too cheap to hire a qualified CFO despite being a publicly listed company...BSPM's CFO seems to be the real deal..here is his bio from a press release Biostar Pharma (BSPM) Appoints Deyin "Bill" Chen as CFO ":

• Mr. Chen brings more than 13 years of multinational and Big 4 accounting experiences to Biostar. His expertise includes financial management, financing transactions, corporate governance and investor relations. Most recently, Mr. Chen was an independent advisor engaged in local RMB PE fundraising and providing M&A and PE advisory and due diligence services. Prior to that, Mr. Chen was a partner of Trenwith Securities LLC, where he was engaged in and executed cross-border equity financing for various Chinese companies. He was also a senior business advisor of Ernst & Young and a senior financial advisor of IBM Global Services. From 1997 to 2000, Mr. Chen was the CFO for China Operations of Ashland Inc.
• Mr. Chen graduated with a Bachelor's degree in Nuclear Physics from Fudan University, and Master of Science degree in Nuclear Engineering and Accountancy from University of Cincinnati. He also holds a MBA degree from York University.

It's rare to see any resume with nuclear physics and accounting....it's wonderful that BSPM understands the value of a REAL CFO...although for most of the China companies we see...a CFO who knew just GAAP accounting and English would be a marked improvement.

Conclusion

Currently, shares of BSPM are right smack in between its 200 day moving average (DMA) of $3.25 and its 50 DMA of $2.80. Biostar is one of those companies that will one day breakout to the upside. What the company needs is a stronger retail and institutional following because the fundamentals are clearly already there. Adding a big four auditor would also do wonders for Biostar as well. These days it seems every China company is guilty until proven innocent. Quite frankly...this is the right way to view investing in China. China Vesting knows about China...about investing in China...and how things work there....

It seems like every week another China stock is taking their shareholders to the cleaners. The list has grown from Fuqi International (FUQI), Orient Paper (ONP) and the most recent blow up RINO International (RINO). Many of these problems could be solved by using big name auditors. This is not to say that Big Four auditors are infallible as proven by Enron, WorldCom and a laundry list of other companies. But seriously..what's a few hundred thousand dollars extra per year to avoid a drop in your company's entire value that could be in the tens if not hundreds of million in value. Let's hope BSPM hires a big four sooner than later.

To rehash...26,876,864 shares of Biostar are currently outstanding and at $3.03 per share the market capitalization is $81.44 million. 2010 revenues are estimated to be $80 million with net income of $18 million. That means the current PE based on 2010 earnings is still 4.52. However, keep in mind that Biostar has $0.60 per share in cash and no debt on the balance sheet. BSPM may have not gotten much respect in the past or even now...but if the continues to perform there is very little chance the stock remains at these levels.

SEC Filings Q3
Biostar Company Presentation

First...let's take a look at the latest "victim", RINO International Corporation (RINO). RINO has been featured in a hugely negative report by Muddy Waters Research...this is the same outfit that took Orient Paper (ONP), another member of the China Vesting Index, to the woodshed. Shareholders of RINO have been running for the hills...look at RINO's chart below:

U-G-L-Y is all we can think of... although shareholders of RINO probably have other four letter words in mind. China Vesting has focused on the issue of "What Is Making China Stocks Sick" in a previous edition, this is a good refresher for people investing in the China space to spend some time reading. On to the good stuff...

China Carbon Graphite (CHGI) Reports Doubling of Net Income

China Vesting's most recent stock pick, China Carbon Graphite (CHGI) has been on fire gaining as much as 17% since November 11th. Now we feel smart for not waiting for a pull back. Let's just hope today's update doesn't jinx the stock. The company just reported third quarter results (press release) that were way above what anyone could've expected. The stock has traded up accordingly and is fighting to get over its 200 day moving average (DMA) resistance of $1.09 per share.

For a link to China Vesting's full write up on China Carbon Graphite (click here).

Third Quarter 2010 Highlights

• Revenue was $9,979,707, up 78.8% from the same quarter of 2009.
• Gross profit was $2,474,084, up 62.2% from the third quarter of 2009 with gross margin of 24.8%, slightly decreased 2.5% from 27.3% for the third quarter of 2009.
• Net income was $1,900,563, an increase of $965,298 or 100% from the third quarter 2009, and earnings per diluted share were $0.09 based on 21,435,161 shares
  

It looks like things are finally turning around at CHGI and perhaps some of those nuclear plant contracts will come in before the end of the year.

China Shandong (CSNH) Increases Net Income 74.8%

What happens when a company continually grows its revenues and earnings while at the same time NEVER issuing a press release? China Shandong (CSNH) is what you get! China Vesting first added CSNH to the Dragon Undervalued Index on April 16th. This wicker furniture maker then proceeded to suck the winds right out of shareholders sails by not issuing any press releases for what seems like the rest of the year.

China Shandong recently announced third quarter 2010 results that were fantastic....yet no PR...no SHAREHOLDER COMMUNICATIONS...(maybe we need to say this in Chinese).

• Revenues for the three and nine months ended September 30, 2010 were $22,746,574 and $62,181,727, representing an increase of $8,021,462 or 54.5%, and $15,980,610 or 34.6%, compared to revenues of $14,725,112 and $46,201,117 for the comparative periods ended September 30, 2009.

• Net income for three and nine months ended September 30, 2010 was approximately $4,008,460 and $10,286,442, respectively, an increase of approximately $1,715,854 or 74.8%, and by $2,870,117 or 38.7%, compared to net income of approximately $2,292,606 and $7,416,325 for the same periods ended September 30, 2009.

Look at the results above and now look at the stock chart below:

If there are any IR professionals reading this...CALL the company now because they clearly need some sort of help. There are 12,865,013 shares outstanding and based on $4.50 per share the market capitalization is $57.89 million. With three quarters out the way and net income at $10 million let's assume 2010 yields total net income of $14 million. That puts the current PE at 4.13 for a company growing like gangbusters....oh and if the stock price holds CSNH is going to the Nasdaq Exchange which should prove to be another catalyst.

Biggest Gainers For The Week

HQ Sustainable Maritime Industries, Inc. (HQS) closed the week as the highest gainer in the China Vesting Index up +25.42%. The leading producer of Tilapia biomass, including fish and personal healthcare products, just reported their third quarter financial results. The company's health and bio-product segment sales increased by 6% to $8.6 million during the third quarter in comparison to $8.1 million in the same period last year.

With a +13.03% gain, Yuhe International, Inc. (YUII) announced that they will be conducting a conference call at 9:00 a.m. EST on Tuesday, November 16, 2010. The leading supplier of day-old chickens raised for meat production in China will be discussing their third quarter results for 2010. To participate in the live conference call, the domestic line is (877) 509-7549. International callers is (706) 902-4287.

China Biologic Products, Inc. (CBPO) finished this week up +5.71% after also announcing that it will host a conference call discussing the company's third quarter 2010 financial results. Mr. Colin Zhao, Chief Executive Officer, and Mr. Tristan Kuo, Chief Financial Officer will be hosting the conference call.

Another sizable gainer for the second week in a row is China Shenghuo Pharmaceutical Holdings, Inc. (KUN) up +4.44%. The company just released the management's discussion and analysis of financial condition and results of their operations. That helped boost investor confidence.

New Oriental Edu & Tech ADR (EDU) finished with a gain of +4.25%. China’s largest provider of private educational services announced that the Company's Board of Directors has appointed Mr. Chenggang Zhou as Director of the Company and Mr. Xiangdong Chen has been appointed as Executive President, Domestic Business, Mr. Yunlong Sha has been appointed Senior Vice President and Mr. Guofu Li has been appointed Vice President, Operations.

Biggest Losers For The Week

The largest drop amongst the loser companies this week is RINO International Corporation (RINO) with a loss of -32.00%. The environmental protection and remediation company in the People's Republic of China will be investigated by the Law Offices of Howard G. Smith on behalf of purchasers of the common stock concerning possible violations of federal securities laws. The investigation will center on charges that certain statements issued by the Company regarding RINO's business, operations and prospects were false and misleading. There will be plenty to discuss during their third quarter conference call.

With a -28.41% decline, China Armco Metals, Inc. (CNAM) announced that the Jiangsu Provincial Government has recently initiated additional rolling blackouts for the Lianyungang enterprise zone where its wholly owned subsidiary operates its metal recycling facility. The energy restrictions will significantly reduce the company's recycling capabilities in the fourth quarter and has also impacted distribution business. Due to the uncertainties to duration of the current power disruptions, the distributor of imported metal ore and metal recycling facility will therefore withdraw its financial guidance for 2010.

AgFeed Industries, Inc. (FEED) experienced a drop of -24.33%. The international agribusiness with operations in the U.S. and China, announced its results for the third quarter of 2010. After reporting the disappointing earnings, traders fled since the results were well below analysts' expectations for $0.33 cents in EPS on revenue of $37.3 million.

This was a bearish week for Solarfun Power Holdings Co. Ltd. (SOLF) with a loss of -21.01% after the company announced that its follow-on public offering of 8,000,000 American depositary shares was priced at US$9.00 per ADS, and that the underwriters have exercised their option to purchase 1,200,000 additional ADSs. This total offering size of US$82.8 million in gross proceeds represents a 6.1% increase compared to the public offering size announced at the commencement of the public offering.

China Agritech Inc. (CAGC) closes out the losers list with a -20.77% decline. The maker of organic fertilizer reported a net income decrease of 68% to miss analysts' expectations as devastating floods in China damaged two million acres of cropland, effecting demand for its products. The company’s third-quarter earnings slid to $1.8 million, or $0.09 cents a share, from $5.7 million, or $0.41 cents a share, during the same period last year.

Needless to say investors abandoned ship and now China Carbon is like the hundreds of other China companies listed in the U.S. that are pretty much ignored. Why is China Vesting interested? The stock has been a relative loser but things look to be turning around. We never want to say "never" but we've never seen a company in China obtain a bank loan equal to almost 150% of its market capitalization and it is pure debt with no convertible feature...meaning there is no dilution. Also, the loan is from a REAL bank...China Construction Bank. You can read the company's press release China Carbon Graphite Group, Inc. Announces RMB 180 Million Loan From China Construction Bank here on Yahoo Finance.

So what does this roughly $27 million USD (180 million RMB loan mean? Let's just quote the company:

Each of these loans has a one year term with an interest rate of 5.41% per year and will be renewable at the lender's option after the expiration of the loans. The loan agreement provides for operating and financial covenants typical for loan transactions of this type. Proceeds of the loans will be used by the Company to purchase raw materials, specifically focusing on higher purity graphite and fine grain graphite materials. This loan facility enables China Carbon to significantly reduce the risk of price inflation of raw materials and leverage increased facility capacity, and expand its profit margin, by allowing the Company to buy larger amounts of raw materials in advance in order to receive better pricing.

"We believe the price of raw materials will continue to rise in the coming years, the loans we received from China Construction Bank will allow us to lock in the price of our raw materials by facilitating larger advanced purchase arrangements at better pricing, in order to hedge against the risk of inflation. Furthermore, with the increasing sales and price of our products, we believe we will deliver improved results in next few quarters, showing incremental increases in our top and bottom line," said Donghai Yu, the Chief Executive Officer of China Carbon.

The ability for us to receive these loans on such favorable terms from one of the largest Chinese banks further shows the confidence of our business operation and future industry potential," Donghai Yu continued.

Based on the company's most recent SEC Quarterly Filing as of August 16, 2010 there are 20,160,161 shares of common stock issued and outstanding. Based on Thursday closing price of $0.94 per share the total market capitalization is $18.95 million. With over $8 million or $0.40 per share in cash China Carbon Graphite Group has an excellent balance sheet.

What the company needs to do is increase their top and bottom line. This $27 million USD loan should help take care of that. From looking over the company's 2009 Annual Report China Vesting believes that CHGI should be getting some Chinese Nuclear Plants as clients in the near term (see Overview Of Business section below).

With shares trading at $0.94 per share China Vesting believes that the company is undervalued and will reward shareholders who have a long term...(12-24 months) view. The stock is up 17.38% today making us sick for not introducing China Carbon last week to China Vesting readers. We thought about waiting for the stock to pull back a bit before adding it to the Undervalued index but based on the company's cash position and now 180 million RMB loan, it is worth taking a look at the company now.

Overview Of Business

China Carbon Graphite Group is engaged in the manufacture of graphite based products in the People's Republic of China. The company's products are either used in the manufacturing process for other products, particularly metals, or for incorporation in various types of products or processes. CHGI believes they are the largest wholesale supplier of fine grain graphite and high purity graphite in China and one of China's largest producers and suppliers of graphite products overall. CHGI currently manufactures and sells the following types of graphite products: graphite electrodes; fine grain graphite; and high purity graphite.

Approximately 40% to 50% of CHGI's graphite electrodes are sold directly to end users in China, primarily consisting of steel manufacturers. All other sales are made to over 200 distributors located throughout 22 provinces in China. CHGI's distributors then sell the company's products to end customers both in China and in foreign countries, including Japan, the United States, Spain, England, South Korea and India. In 2010, CHGI's primary strategy is to increase gross profits by better aligning overhead costs with existing levels of sales and pricing and to acquire other businesses within the industry that manufacture products that CHGI does not currently manufacture which CHGI expects to generate significant profits.

The company's long-term strategy is to expand product offerings by manufacturing nuclear graphite used as a reflector or moderator in nuclear reactors in China. The profit margin on these products would be significantly higher than the profit margin on the company's current line of products. There are currently 11 nuclear power plants in China, with 15 more plants currently under construction. These power plants currently purchase their nuclear graphite from manufacturers in foreign countries, including Japan, Germany and the United States, which involves greater costs than purchasing from local Chinese companies. CHGI knows of only one graphite manufacturer in China that currently produces nuclear graphite that meets the specifications of these power plants. Only graphite rods with a diameter of more than 840 millimeters and a purity of more than 99.9999% may be used in nuclear power reactors. To date, CHGI has produced only samples that meet these standards. The largest graphite that we currently produce in large quantities that contains such a high level of purity has a diameter of 600 millimeters.

Financial Highlights

In connection with the private placement offering in December 2009 and January 2010, the Company agreed to certain covenants in the event that the Company did not meet the performance target for fiscal year ended December 31, 2010 of net income of at least $5.1 million ("Make Good"). It looks highly unlikely that the company will achieve its "make good" numbers unless the next two quarters are just blockbuster.

Here is what the company had to say for the first six months of 2010,

Sales. During the six months ended June 30, 2010, we had sales of $8,095,000 as compared to sales of $6,551,000 for the six months ended June 30, 2009, an increase of $1,544,000 or approximately 23.57%. The low sales revenue in the first two quarters 2009 was primarily due to weak demand of graphite products, graphite electrode in particular in 2009, as well as the residual effect of the closedown of our facility in anticipation of the 2008 Olympics. Our revenue for the six months ended June 30, 2010 was mainly from sales of fine grain graphite, graphite blanks and semi-processed graphite products. We experienced a significant decrease in the demand of graphite electrodes and high purity graphite during the six months ended June 30, 2010 resulting from the global economic slow down.

For the six months ended June 30, 2010, two customers accounted for 10% or more of sales revenues, representing 32.9% and 18.8%, respectively of the total sales. As of June 30, 2010, there were three customers that constitute 23.3%, 16.9% and 10.8%, respectively of the accounts receivable. As of December 31, 2009, there were three customers that accounted for 17.6%, 15.4%, and 14% respectively of the accounts receivable.

Cost of sales; gross margin. During the six months ended June 30, 2010, our cost of sales was $6,842,000 as compared to $4,857,000 during the six months ended June 30, 2009, an increase of $1,985,000 or 40.87%. As a result, our gross profit decreased $441 or 26.03%, for the six months ended June 30, 2010. Our gross margin decreased from 25.86% for the six months ended June 30, 2009 to 15.48% for the six months ended June 30, 2010. The decrease reflects the variance in production mix. We increased sales of graphite blanks and semi-processed graphite products due to the significant decrease in demand of high purity graphite and graphite electrodes. These products have much lower gross margin.

Net income. As a result of the factors described above, our net loss for the six months ended June 30, 2010 was $(138,000) as compared to net income of $1,000,000 for the six months ended June 30, 2009, a decrease of $1,138, or 113.8%. At June 30, 2010, cash and cash equivalents were $8,059,541.

Conclusion

As you can see from the chart below, CHGI traded in the range $1.25-$3.25 late April of 2010. The stock went on a crazy run in March of this year for no apparent reason. The company issued guidance for $5.1 million net or $0.25 per share on April 19, 2010 but the stock started taking off a month earlier. The only other news/events at that time was the announcement on March 3, 2010 with China Carbon Signing a Letter of Intent to Acquire Chiyu Carbon Graphite Limited. The point we wanted to illustrate is that CHGI can move quickly on the upside and the downside.

The 200 day moving average (DMA) is currently at $1.09 per share. If CHGI breaks through this resistance line we believe there is not much to hold back the stock until the $1.40-$1.50 levels. Based on Thursday closing price of $0.94 per share the total market capitalization is $18.95 million. With over $8 million or $0.40 per share in cash and a 180 million RMB loan from China Construction Bank....China Vesting believes CHGI is undervalued and will begin to see improving fundamentals.

Biggest Gainers For The Week

Asia Cork, Inc. (AKRK) closed this week with a bullish gain of +35.71%. The groundwork has paid off for the company when deciding earlier this year to broaden share ownership among the company's top executives and board members, which have helped to facilitate a public offering.

With a +23.96% gain, Orient Paper Inc. (ONP), the leading manufacturer and distributor of diversified paper products recently issued a press release producing an update of their independent investigation which has made substantial development and is now in its final stage. The company expects to complete the final portion of the investigation and submit results of the investigation to the Board of Directors within weeks.

China Valves Technology, Inc. (CVVT) finshed this week up +22.41% after announcing that they'll be hosting a conference call at 9:00 a.m. (Eastern Standard Time) on Wednesday, November 10, 2010 to discuss its financial results for the third quarter ended September 30, 2010. Mr. Jianbao Wang, Chief Executive Officer and Mr. Renrui Tang, interim Chief Financial Officer, will be hosting the call.

Another double digit gainer for the second week in a row is The9 Limited (NCTY) up +20.27%. The Chinese online game operator and developer's main source of profitability came from operating World of Warcraft for internet cafes in China and continues to reap promising numbers.

China Marine Food Group Limited (CMFO) finished with a gain of +15.20%. The manufacturer of seafood-based snack foods has appointed BDO China Li Xin Da Hua, as the Company's new independent registered accounting firm. BDO China and China Marine signed a letter of engagement on October 29, 2010. The company also announced Wednesday that they will hold a conference call to discuss its financial outcome for the quarter three and nine month results ending September 30, 2010.

Biggest Losers For The Week

The largest drop amongst the bearish companies is Cninsure Inc. (CISG) with a loss of -15.84%. The leading independent insurance intermediary company, announced Thursday that it will release its financial results for the third quarter 2010 shortly after the close of the U.S. financial markets on November 22, 2010.

With a -12.26% decline, Yayi International Inc. (YYIN) has yet to gain the confidence of investors by proving goat milk is a winner at the 4th China Quality Food Expo and the 2010 China Tianjin International Food Trade Fair. The leading producer and distributor of premium goat milk formula products showcased their variety of "Milk Goat" branded goat milk products, including three new goat milk products catered towards infants, toddlers and young children.

China Shenghuo Pharmaceutical Holdings Inc. (KUN) experienced a drop of -12.24%. The company is still recovering after receiving that deficiency letter last month from the NYSE Amex LLC stating that, as a result of losses from continuing operations and net losses in two out of its three most recent fiscal years, the Company is no longer in compliance with Section 1003 of the AMEX's Company Guide. Ouch! The letter also states that to maintain its AMEX listing, the Company must submit a plan of compliance by October 22, 2010. No sign of the game plan yet.

This was a bearish week for Tiens Biotech Group USA Inc. (TBV) with a loss of -8.57% after appointing the daughter of the Chairman, Chief Executive Officer, President and Acting Chief Financial Officer of the Company, Jinyuan Li. Tiens Biotech Group, Inc. choose Baolan Li to the board of directors of the company just last month. It doesn't take rocker science to apprehend why this doesn't sit well in the stomach of shareholders.

Ctrip.com International Ltd. (CTRP) closes out the losers list with a -8.46% decline. It seems that promising investors have priced in a much more aggressive growth rate which will be challenging for CTRP to meet in terms of expectations. There is a compelling amount of ambiguity in China surrounding growth rates, currency stability and plenty of other affairs as well.

Biggest Gainers For The Week

China Advanced Construction Materials Group, Inc. (CADC) closed the week with a bullish gain of +18.52%. This week, the leading provider of ready-mix concrete, entered into a material definitive loan agreement with the Beijing Branch of Shanghai Pudong Development Bank. The agreement provides for a loan of RMB 60 million (approximately $9M). Earlier this week, the company also announced their award of a new $3.5M high-speed rail (HSR) contract as well as securing $10.5M in debt financing.

With a +13.15% gain, Acorn International, Inc. (ATV), the leading integrated multi-platform marketing company announced that its Board of Directors consented to a cash dividend of $0.23 per ordinary share on its outstanding shares to shareholders of record as of the close of trading on November 15, 2010. Don Yang, Chief Executive Officer of Acorn stated, "The $20M in dividends continues to reflect our ongoing commitment to maintaining a healthy cash balance for future expansion while returning value to shareholders."

Perfect World Co., Ltd. (PWRD) finished this week up +12.33% after the launching of the open beta testing for its 2D Dragon Excalibur yesterday. The leading online game developer and operator created Dragon Excalibur to feature lustrous visual effects, clan battles that blend Eastern and Western fighting styles, diversified pet systems, and innovative classes and skills. The gaming industry has proven to be a promising release for Perfect World.

Another double digit gainer this week was Agria Corporation (GRO) up +10.29%. The China-based holding company for investments in the agriculture sector, announced that it has made a RMB40 million investment in Wuwei Ganxin Seeds Company Limited. Agria and Ganxin have made an exclusive sales agency agreement, where the complete production volume of all current and future varieties of seeds owned or developed by Ganxin will be sold by Agria, acting as Ganxin's exclusive agent.

The9 Limited (NCTY) finished with a gain of +9.39%. Another win for the gaming industry. The online game operator and developer's main source of profitability came from operating World of Warcraft for internet cafes in China and continues to reap promising numbers.

Biggest Losers For The Week

The largest drop amongst the bearish companies is China Security & Surveillance Technology, Inc. (CSR) with a loss of -14.42%. While China Security, a leading integrated surveillance and safety solutions provider in the P.R.C., managed to grow its third-quarter revenue by 14% to $182M, analysts were expecting a top-line of $201M. China Security's optimism for 2010 and 2011's growth is met with pessimism now that growth is slowing much sooner than anticipated. The company will be presenting its current security and surveillance products and solutions for the 10th China International Exhibition on Public Safety and Security in Beijing, China on November 2-5, 2010. Hopefully, investors will regain their confidence post exhibition.

With a -11.85% decline, Telestone Technologies Corp. (TSTC), a leading developer and provider of telecommunications local access networks, made the weekly loser list. Could this be due to the company securing a 300 million RMB ($44M) line of credit from Bank of Beijing? Perhaps this didn't sit well with their investors. "With additional financial flexibility from this line and a backlog of $106M, we remain confident we will achieve our $129.4M revenue target for the full year 2010," stated CEO and Chairman Mr. Daqing Han.

China Biologic Products, Inc. (CBPO) experienced a -8.84% tumble after just releasing their quarterly financials just last Saturday. I guess the results weren't enough to influence CBPO investors hold onto their stock.

This was a bearish week for China Armco Metals, Inc. (CNAM) with a loss of -8.80% after being listed on the top 10 open-market insider purchases and sales filed at the Securities and Exchange Commission. The stock has done well of late but this week shares of China Armco took a breather, We'll have to see how things progress next week to see if this downtrend is the start of a new direction for shares of the company.

Yucheng Technologies Limited (YTEC) closes out the losers list with a -7.42% decline. The leading provider of IT solutions and services to China's banking industry announced Monday that they'll be holding a conference call discussing the financial results of the third quarter on November 11, 2010.

Biggest Gainers For The Week

SinoHub, Inc. (SIHI) ends the week with a bullish gain of +15.35%. On October 12th, Afshin Yazdian resigned as a member of the Board. For his replacement, the board elected Qi He to serve as an independent member of the Board to fill the vacancy created by the resignation of Mr. Yazdian and also appointed Mr. He as a member of the Board's Audit Committee. Looks like stockholders see a promising future with the new board member.

With a +10.00% gain, China Shandong Industries, Inc. (CSNH) made the list of top weekly gainers. On Wednesday, an SEC filings was published a Non-Reliance on Previous Financials, Audits or Interim Review. The filing is of an audited consolidated statement of cash flows for the fiscal year ended December 31, 2008, the Company's audited consolidated financial statements for the fiscal year ended December 31, 2009, and the Company's unaudited consolidated financial statements for the quarter ended March 31, 2010, could no longer be relied upon.

The next bullish company is AirMedia Group Inc. (AMCN) with an increase of +7.88%. The leading operator of digital TV screens that display advertisements in airports and airplanes, announced Thursday that they will report its unaudited financial results for the third quarter after the U.S. market closes on October 26, 2010.

Yuhe International, Inc. (YUII) ranks in the top 5 gainers with +7.86%. The Chinese supplier of day-old chickens raised for meat production, announced that they priced a registered public offering of 3,600,000 shares of its common stock at $7.00 per share. Yuhe International, Inc. expects the offering to yield proceeds, before expenses, of $23.9 million and devotes to use the net proceeds from the sale of the common stock for future acquisitions, capital expenditures and general corporate and working capital prospects.

With a +7.25%, Cninsure Inc. (CISG) bullied its way to the list of gainers. Late September, the insurance intermediary company announced that they had signed a joint venture agreement with Shanghai Puyi Investment Consulting Co., Limited to target the Chinese wealth management market. They had also just announced that it is scheduled to launch a non-deal roadshow in Europe and the United States in October 2010.

Biggest Losers For The Week

The largest drop amongst the bearish companies is LDK Solar Co., Ltd. (LDK) with -16.30%. The manufacturer of multicrystalline solar wafers and PV products, announced Thursday that Xiaofeng Peng, Chairman and CEO of LDK Solar, has been selected as the CEOs' Choice of the Year. Apparently investors didn't see that as an advantage. The award was presented by China Business Leader Awards 2010 on October 20, 2010. Chairman Peng is now a qualified candidate for the CNBC Asia Business Leaders Awards 2010.

SOL ReneSola Ltd. (SOL) had a -11.35% loss this week. Due to the U.S. government's official investigation into alleged unfair trade and investment practices by the government of China in green technologies, across the board, solar stocks were slammed in reaction. U.S. Trade Representative Ron Kirk stated that the inquiry comes in response to a petition filed by the United Steelworkers with the government last month.

The next bearish company ended the week with a -10.61% decline. China Marine Food Group Limited (CMFO), a manufacturer of Mingxiang seafood-based snack foods, marine algae-based beverages and distributor of frozen marine catch announced Wednesday of their $2.0 million of Hi-Power beverage sales for the month ended September 30, 2010. "Sales of Hi-Power were strong the summer since consumers typically drink more liquids in these hot months," began Pengfei Liu, Chairman and CEO of China Marine. The world is well into the cold season of Fall.

With -10.27%, Xinyuan Real Estate Co., Ltd. (XIN) had quite a descent. The National Association of Home Builders/Wells Fargo stated its builder confidence index rose to a reading of 16 in October from 13 in September estimating for a reading of 14. While an optimistic outlook among homebuilders is a bullish signal for the stocks, the sector is still feeling pessimistic pressure from high unemployment and a demand slump post expiration of Obama's homebuyer tax credits from June.

Yingli Green Energy Holding Co. Ltd. (YGE), with a -10.25% tumble, announced that they have secured supply contracts to deliver a total of 445MW of PV modules in 2011. Other than the contract, a 0.25% interest rate surge jump started rumors that Beijing may let the yuan strengthen versus the U.S. dollar and other currencies. That move could possibly force Yingli into a drawback: raise prices to account for the relatively higher cost of making its solar panels, or live with lower profits instead.

Don't Get It Twisted

First off, it is important to understand that for Chinese companies, listing in the U.S. stock market is not their FIRST CHOICE! That's right...the honest truth...of the estimated 600 or so China companies listed on U.S. exchanges none of them wouldn't high tail it to the Shanghai or Shenzhen stock exchanges in an instant...if given the chance. From a purely capitalistic standpoint...why wouldn't they when the valuations are downright frothy.

From looking at the Shenzhen Stock Exchange website the average P/E ratio is 41.19. The SME Board (Small and Medium Enterprises Board) is a segment within the main board sports a hefty P/E ratio of 50.44. One year ago ChiNext, a board within the Shenzhen stock exchange dedicated to micro caps and emerging companies debuted. ChiNext companies have been on a tear and the companies listed there are valued at an average P/E of 63.44.

The Shanghai Stock Exchange has a much more reasonable valuation with an average P/E ratio of "just" 22.48. Compare this to the current P/E ratio of the S&P 500 which is looking cheap in comparison at 17.51 What the market is saying to everyone is that an average company listed on the Shanghai exchange is valued 28.3% more than companies comprising the S&P 500. Shenzhen Stock Exchange issuers hold a premium of more than 135% while ChiNext companies are valued at more than 262% compared to S&P 500 companies.

Why in the world would a Chinese owner aka CEO/Chairman want to list in the U.S.? The average valuation these deals for Chinese companies seeking funding in the U.S. capital markets is around 3-5 times trailing 12 months earnings. This is the level at which hedge funds and investors are willing to invest at. Don't forget the American investors put in a mountain of terms and conditions that quite frankly no U.S. company executive would ever agree to. All this...to list in the U.S. and these days liquidity for China based U.S. stocks have little to no liquidity. Could these Chinese companies just be gluttons for punishment or is there more to the story?

Easy (er)

Unlike the U.S., to list one's company in China is an arduous task that is mind boggling complicated and very difficult to navigate. There is a queue of companies just waiting to list on Chinese domestic exchanges and every one of them has "connections" aka "Guanxi". Well...what happens when everyone is connected? The market becomes "normal" and no one is special anymore except for the special cases. The owners of these Chinese companies have privately expressed their dismay at the cost, time and most importantly the uncertainty of the IPO process in China.

Many of the companies that seek listings in the U.S. have been rejected for China listings and are merely seeking Plan B if not Plan C or D. Many people may be wondering what's so hard about listing in China. For one you have to be connected and for the most part everyone is. That is just the prerequisite, the hard part is in getting enough people to support the company. If the business is a state owned enterprise (SOE) then there is a red carpet waiting for you but for 99% of the Chinese business owners, their relationships are not nearly as strong as they need to be. This comes as a shock and also a slap in the face for many of these business owners. Having contacts to start and sustain a business doing $50 million in revenue and netting $8 million is one thing...gettting approval to sell stock at a P/E around 50 is something entirely different.

One of our contacts at China's largest investment bank schooled us on how some "things work". As with any IPO or listing on any exchange there are lots of fees involved. There are the necessary audit fees, attorney fees, banking fees and last but definitely not least...the miscellaneous fees. The Chinese business owner needs to consider if all of these fees are worth paying...many times upfront...without the certainty of a listing. For many the risks are too great and taking the Plan B road, although a discount to market versus China, is the safer choice. For others who actually spent the money and failed the U.S. market represents a move that can restore some "face".

Moving Assets

There is a feeling amongst the elite and wealthy in China that things could turn in an instant. This could be the result of the massive prosperity enjoyed in the past few years in what is essentially a 61 year old government regime. If you spent your life in poverty and became super wealthy within few years....chances are you would feel like the rug could get pulled out from under you. Too good to be true is how many rich Chinese feel deep down. Notice the massive amounts of money the Chinese spend on luxury items and the gaudy display of wealth exhibited by some.

The elite/rich feel and act as if there is some sort of expiration date on their net worth. Understanding this mentality will allow people to understand why rich Chinese act a certain way. While blowing massive amounts of money... the inverse is true as well...with the rich simultaneously saving hoards of money for a rainy day or....worse.

Renminbi, China's currency is a highly regulated currency. That means for a Chinese business owner to "cash out" he needs to sell his business entirely or figure a way to move his assets offshore. Ironically, the U.S. allows these Chinese owners to essentially move their equity stakes into U.S. dollars. Of the 600 or so Chinese companies listed in the U.S. the majority have their stock certificates in paper form at home under the rug...(we are serious) or at a U.S. brokerage firm. When these owners begin to sell their shares they will be sitting on mountains of cash in the U.S.

China Vesting does not know the exact figures that these small and medium sized business owners have transferred to the U.S. but it is significant to say the least.

Conclusion

China has a fascination for foreign brands (except for Japanese). This is not to say domestically made goods are horrible since so much of it is shipped overseas...it's just that foreign brands represent wealth and achievement. That is why for many Chinese owners...being a NASDAQ or NYSE company holds distinction. Many people have no idea on the path these entrepreneurs took to get to their current state. Going back 5 or 10 years these now rich and successful businessmen will tell you that they had a better chance of going to the moon then becoming a listed company on a U.S. major stock exchange.

It is downright inspiring to hear about many of the success stories here in China. Overall, the majority of companies China Vesting meets are run by decent people. Their path to success always entails similar attributes which are not so entirely different than the entrepreneurs in the United States two or three generations ago. It really is like the Wild West here but things are changing quickly. The infrastructure changes in the finance world are slow compares to everything else but that is a good thing for investors. There many U.S. listed China companies that really deserve to be listed in China but for the reasons we discussed above have decided to pursue the "American Dream".

We can also tell you that in China we've met some downright scams and frauds. After running through almost a hundred cities and meeting hundreds of companies and people here we can tell you that there is opportunity in China stocks listed in the U.S. The hard part is deciphering which ones are legit. Previously, we've kept the bad seeds to ourselves but in the future we will send our due diligence over to Sharesleuth.

Liu, son of a soldier, joined China's first wave of university students in the 1970s after the Chinese Cultural Revolution. Liu Xiaobo was sentenced last year to 11 years for subversion. The recipient has been an ardent advocate for peaceful, gradual political change rather than confrontation with the government.

The China 100 Stock Index closed at 906.51 +23.92 (2.71 %). China Sky One Medical, Inc. led the gainers up +1.66 (+22.10%). Bohai Pharmaceuticals Group, Inc. fell to the opposite side of the totem pole as the biggest loser this week down -.24 (-10.43%).

Top Gainers For The Week

Topping the list of weekly gainers is China Sky One Medical, Inc. (CSKI) with a harrowing performance up +22.10%. The fully integrated pharmaceutical company recently announced that their 2010 Annual Meeting of Shareholders will take place on October 12, 2010 at the Company's headquarters at Songbei Development District, Harbin, China. Executives will be providing an investor presentation to discuss growth strategy, business outlook, and financial performance. The annual shareholders will also be electing of seven directors for one year.

Next in line is Zhongpin, Inc. (HOGS) finishing the week with a gain of +20.31%. Zhongpin Inc., one of four other processors accounting for less than 10% of China's total market share, reported a 10.1% increase last week promoting the company as one of Nasdaq's top 10 largest percent increases last week.

Xinyuan Real Estate Co., Ltd. (XIN) was the third biggest gainer in the China Vesting Index this week +19.26%. In a country where people loathe talking about their status if they're financially performing poorly, developers sentiment about sales volumes are confident and there's no signs of postponing construction. The Chinese bubble situation is very different from the true bubble situation in the U.S. where you have a lot of people using debt to make purchases. In China, the limit on the loan-to-value ratio for buying apartments has never been more than 80%, and in fact now, the limit is more typically 70% for second-home purchases.

Agria Corporation (GRO) crossed the finish line in fourth place with a promising +16.78%. Early investment strategies sure paid off. Last month the company announced their RMB40 million investment in Wuwei Ganxin Seeds Company Limited. The agreement states Agria is to receive a 49% equity stake in Ganxin, a corn seed research, development, production and sales company based in the Gansu province, China. The agreement is one of Agria's ongoing strategies to strengthen the seed division through series of acquisitions and organic growth.

Last but not least with a +15.15% increase is China Biologic Products, Inc. (CBPO). The biopharmaceutical company occupied in development and manufacturing of plasma-based pharmaceutical products, increased their revenue 23% year-over-year to $40.9 million. The company also successfully confirmed its 2010 revenue guidance range of $142 million to $149 million, and adjusted net income range of $34 million to $36 million.

Top Losers For The Week

Bohai Pharmaceuticals Group, Inc. (BOPH), the worst performing company last week suffered a loss of -10.43%. Just Wednesday, the company released a white paper about China's Traditional Chinese Medicine Market. Entitled "Traditional Chinese Medicine: Ancient Cures Thrive in Modern Age," the white paper conveys the history of Traditional Chinese medicine in China and the differences between its use and that of Western medicine, the expanding size of the TCM industry in China. Traditional Chinese Medicine has enormous potential for alternative healing, but the company should find a cure to increase investor confidence as well.

With a -9.58% decline, Tongxin International, Ltd. (TXIC) was the second biggest loser for the week. As a whole, the Chinese Auto Parts Stocks Index has been trading flat lately. The Index is currently dragging the S&P 500 by more than -6% over the last month.

Also making the loser list is New Oriental Edu & Tech ADR (EDU) -7.77%. The company reported first-quarter earnings to be beneath what analysts estimated due to low enrollment, causing its shares to slip more to an interim low of more than 13%.

The Material Definitive Agreement filed last week didn't do wonders for Yayi International Inc. (YYIN). The company dropped -7.69%.

The company entered into a securities purchase agreement with 119 U.S. accredited investors and Euro Pacific Capital, Inc. The Company issued and sold to the Investors 892 units at a purchase price of $10,000 per unit, resulting in gross proceeds of $8.92 million to the Company.

With a -5.76% decrease, Cninsure Inc. (CISG) made the biggest losers list last week. The insurance intermediary company recently announced that they had signed a joint venture agreement with Shanghai Puyi Investment Consulting Co., Limited to target the Chinese wealth management market. They had also just announced that it is scheduled to launch a non-deal roadshow in Europe and the United States in October 2010.

Biggest Gainers For The Week.

China Shandong Industries, Inc. (CSNH) wrapped up the week with +34.38% gain. No news came out of the company but we imagine that things are probably going well with their underwriter Rodman & Renshaw.

AirMedia Group Inc. (AMCN) had a great week up a staggering +27.35%. The leading operator in Chinese advertising platforms operates digital TV screens in 37 major airports, including 25 out of the 30 largest airports in China. Just Thursday, they had announced that it renewed a promising concession rights contract with China Southern Airlines to operate digital TV screens on the airplanes of China Southern Airlines for five years from October 1, 2010 to September 30, 2015.

China Education Alliance Inc. (CEU) did well with a +19.63% surge after announcing last week that the success of its first tutoring service center will lead to the opening of six new education centers throughout Beijing in the next six months. Directors expect to consume a ballpark of $3 million over the next half year on instructors, advertising, facilities and administrative expenses and calculates to break even within a year before turning profitable thereafter.

China-Biotics, Inc. (CHBT), which recently had some short sellers attack the company regained +15.55%. The company recently presented at the Jefferies 2010 Global SpecPharma and European Healthcare Conference. The conference hosts nearly 100 public and private leading global pharmaceutical companies within the areas of pharmaceuticals, biotech, generics and OTC. This leader in research, development, marketing and distribution of probiotics dietary supplements retails products sold over the counter mainly through giant distributors to pharmacies in Shanghai, Jiangsu, and Zhejiang province.

Last but not least with a +14.91% increase is Yuhe International, Inc. (YUII). The company, a supplier of day-old chickens raised for meat production, signed a series of supply contracts between May and July with two suppliers to purchase external eggs to be produced by 420,000 sets of parent breeders at fixed prices of between RMB 1.45 and RMB 1.50 per egg. The Company continues to foresee to achieve a total output of 150 million broilers for 2010 and an output of 250 million broilers for 2011.

Biggest Losers For The Week

China America Holdings, Inc. (CAAH) has the dubious distinction of leading the losers this week down 20.00%. Things aren't too bad considering the Company was the highest weekly gainer these past two weeks in a row. With such a low stock price we may have to exclude CAAH in the future from the gainers and losers list.

Asia Cork Inc. (AKRK) was the second biggest loser this week down -8.70%. The stock is down on almost no volume. It may be time to reassess whether this company should be included in China Vesting. However, the stock's valuation is undervalued.

For the week, China Architectural Engineering, Inc. (CAEI) was down -8.33%. Just last month the developer of online MMORPGs games announced they had appointed Mr. Wing Lun Leung as chief executive officer and as a member of the Company's board of directors. Shortly after, the company successfully completed two closed beta tests for its upcoming online game titled "The Warring States". Let's hope they'll have better luck with this new CEO.

Tiens Biotech Group USA Inc. (TBV) has a bad week losing -8.28%. Last quarter, Tiens Biotech Group (USA), Inc. board of directors appointed a new Chairman, Chief Executive Officer and President of the Company, Mr. Jinyuan Li, to fill the vacancy created by the Company's former Chief Financial Officer, Manbo He. Warm up time is over, Li. It's time to get things moving in the right direction.

3SBio (SSRX) lost -7.85% this week. The biotechnology company focused on researching and marketing biopharmaceutical products announced last week that it has converted C$2.02 million (US$1.92 million) of a US$4.5 million debenture convertible into Isotechnika Pharma Inc. common shares. Isotechnika issued 13 million common shares at C$0.155 per common share to 3SBio, representing an estimate 9% of the issued common shares of Isotechnika.

We hope this new audience will hopefully benefit from our China perspective. As a token of our appreciation, China Vesting will be writing an article later this week or early next week on why so many companies do not IPO in China. This was a point brought up by Mr. Cuban in his twitter feed...which we were not able to view in China. China Vesting's explanation may be the only time someone has ever spoken of the REAL reasons. How do we know? Many Chinese reverse mergers began their paths to the public markets waiting in the China domestic IPO queue, only to find it "unsuitable". In addition, our contacts at the most prestigious investment bank in China...(hint...Cough I...Cough Cough) have given ChinaVesting incredible insight. This is going to be a must read for anyone interested in putting a penny into China stocks.

One of the biggest differences between the United States and China is what constitutes medicine. For thousands of years the Chinese have used Tradition Chinese Medicine (TCM) while America takes a much more scientifically based approach to medicine. TCM is based more on natural ingredients while western medicine is based on FDA trials and massive amounts of research & development. This is not to say one is better than the other although there are proponents and opponents on both sides. The point is not to judge...China and the U.S. are just different when it comes to health.

There seems to be a limitless amount of small and medium sized TCM companies throughout China. Most are small regional players although some have made it to the big stage. American Oriental Bioengineering (AOB) is the biggest of the sector with almost $300 million USD in annual sales. AOB is one of the first really successful China Reverse Mergers to list in the United States. However, we are sick of seeing their commercials literally run every minute in China...note to AOB...hire a famous celebrity to make your commercials more entertaining.

In the future it is our prediction that the government will clean the industry up and consolidate. This will make the TCM industry more legitimate because the potential for abuse is substantial in the TCM world. This would be equivalent to nutraceutical companies in the U.S. making health claims for their products...but they don't really work...oh wait that already happens. The major check and balance would be that in China, if the TCM actually CAUSED health problems the owner would face penalties that a U.S. businessman would not...need we say more?

Without further delay China Vesting would like to announce the addition of Bohai Pharmaceuticals (BOPH) to the Dragon Undervalued Index. Based in the city of Yantai, Shandong Province, China, Bohai Pharmaceuticals Group, Inc. is engaged in the production, manufacturing and distribution of herbal pharmaceuticals based on Traditional Chinese Medicine in China. Bohai's medicines address common health problems such as rheumatoid arthritis, viral infections, gynecological diseases, cardio vascular issues and respiratory diseases. Bohai's products are sold either by prescription through hospitals or over-the-counter through local pharmacies and retail drug store chains. Bohai has approximately 600 employees, including approximately 300 sales representatives, operating from 20 offices throughout China. Bohai's lead products, Tongbi Capsules and Tablets and Lung Nourishing Cream, are eligible for reimbursement under China's National Medical Insurance Program.

Here are some stats...The most important being the stock is currently trading at $2.25 per share.

• FY June 30, 2010 projected net revenue of $58 million (vs. $49.3 million FY 2009), equating to an 18% year-over-year net revenue increase.
• FY June 30, 2010 projected net income of $9.0 million (vs. $7.9 million FY 2009), equating to an approximate 14% year-over-year net income increase.
• 16,250,000 shares outstanding before the offering. 22,250,000 shares outstanding after recent funding.
• Raised $12,000,000 USD (6,000,000 shares at $2.00 with 6,000,000 warrants at $2.40)
• EPS of ($9.0 million / 22,225,000) = $0.404 per share
• Euro Pacific acted as the lead placement agent and Chardan Capital Markets, LLC acted as co-placement agent of the private placement.
• Bohai website (http://www.bohaipharma.com/)
• Fiscal Year 2010 earnings to be released on September 28th.

Usually in the Chinese reverse merger handbook...just don't ask us which page... hedge funds will invest at a super low valuation and then when the stock is publicly traded the valuation is about double. Now that the market and appetite for Chinese companies have decreased China Vesting is starting to see companies trade at where these funds originally invested at. The good news is many of these funds have been burned for lack of due diligence and have learned their lessons...we are referring to the ones that made it our alive. China Vesting has been putting together a list of companies whereby the "professional" investors are currently underwater or about even. Bohai just happens to be one of our favorites.

Bohai did a simultaneous reverse merger and $12 million dollar funding. Quote from SEC Filings:

On January 5, 2010, we entered into a Securities Purchase Agreement (the 'Securities Purchase Agreement') with certain accredited investors, who are selling stockholders hereunder (the 'Investors') and Euro Pacific Capital, Inc. ('Euro Pacific'), as representative of the Investors, relating to a private placement by us of 6,000,000 units consisting of Notes and Warrants, which we refer to herein as the private placement. The consummation of the private placement resulted in gross proceeds to us of $12,000,000 and net proceeds of approximately $9,700,000. Each unit consisted of a $2 principal amount, two year convertible Note and a three year Warrant to purchase one share of our common stock at $2.40 per share, subject to certain conditions. Euro Pacific acted as the lead placement agent and Chardan Capital Markets, LLC acted as co-placement agent of the private placement.

Basically the $12,000,000 funding was 6,000,000 shares at $2.00 per share and 6,000,000 warrants at $2.40 per share. This is the first time we've seen Euro Pacific acting as a placement agent on a deal but we have heard plenty about Chardan who is another pioneer in the China space. They were widely known as early China players in the Special Purpose Acquisition Company (SPAC) game. What we like about the funding is that the investors were pretty spread out with not one entity being the majority investor. Most seem to be private wealthy individuals who are long term holders.

The pre-money valuation on this funding was $33 million and a post money valuation of $45 million. That represents a pre-money PE of 3.67 and post money PE of 5 based on fiscal year 2010 projected net income of $9.0 million.

Currently at $2.25 per share the market capitalization is $50,625,000 million which is a PE of 5.625 times fiscal June 30, 2010 earnings projections. The annual report for Bohai is to be released on September 28th...we expect that management will make some sort of earnings guidance for fiscal 2011. The $12 million dollar capital injection should mean a major increase in earnings for fiscal 2011. If the company grew its earnings from $7.9 million to $9.0 million from internal cash flow we expect a $12 million dollar cash injection to bump up the 2011 results tremendously.

China Vesting believes that Bohai will eventually make its way to a senior exchange. Whether this means a reverse stock split or not will depend entirely on how 2011 financial estimates look. At $4.00 per share to qualify for Nasdaq, Bohai would qualify immediately based on stock price if they did a reverse split right now. However, if they did not then the math would have to be $4.00 X 22,250,000 = $89,000,000 or a PE of 9.89 times fiscal 2010 earnings of $9 million. 9.89 times earnings is not exactly a bubble valuation but with the heat Chinese stocks are taking these days it's not going to be easy. If Bohai was able to increase fiscal 2011 earnings to the $12-$15 million range then the PE would be 5.9-7.4 times 2011 fiscal earnings. At that point $4.00 per share would not be out of the question.

The following are links to Bohai related information which was helpful to China Vesting:

Inside Wall Street: A Traditional Chinese Medicine Maker Beckons U.S. Investors
Corporate Power Point Presentation
Company Profile
SEC Filings

The purpose of this edition is to list out the most useful websites in the Chinese Stock Scam busting arena. Before we begin, just today China Vesting had an interesting conversation with some Chinese government officials. What we learned is the government has tons of money...(which we all know). However, their focus is on the large SOEs aka state owned enterprises...Why? The government wants the market to dictate corporate governance and the impetus for change is going public. These are not the smaller Chinese companies that China Vesting focuses on...we are talking about the multibillion dollar IPOs that list in Hong Kong and or Shanghai. By having the market force changes..it creates the ability to avoid direct personal conflict with those that head up these SOEs.

Another tidbit...we will continue to see a long line of Chinese companies entering the public markets in the U.S. due to liquidity issues. Banks are pulling bank loans to small and medium sized businesses to focus on the major SOEs in hopes of decreasing risk. Let's not get into a long debate on economic policy right now. The bottom line...Chinese companies growing like gangbusters need cash and foreign investors are indeed still needed to provide it. The question posed by professional investors these days is whether they will see an ROI on the money they put out to China companies.

Best Sites

Sharesleuth (www.sharesleuth.com) is a site backed by Mark Cuban of the Broadcast.com and Dallas Mavericks fame. The editor, Chris Carey, pulls no punches and produces top tier investigative reporting with serious due diligence. Recently, SinoCoking Coal and Coke Chemical Industries Inc. (SCOK), was featured and ripped apart. The full edition is available at http://sharesleuth.com/shorttakes/2010/09/the-shares-of-sinocoking-coal/. Another Chinese company featured is Telestone Technologies Corp. (TSTC). Telestone was cited for booking sales and basically not being able to collect. It is an interesting read. Although Sharesleuth does not specialize in Chinese stocks their level of research warrants paying attention when one is featured.

Citron Research (www.citronresearch.com) was previously known as the hilariously titled Stock Lemon. The only way to describe the writing style is "In Your Face" and it is very entertaining to say the least. In a recent write up on China Biotics (CHBT) boldly titled "China Biotics (CHBT) is a Fraud -Now sue Citron- We Dare You." the website states:

Citron is confident to state “China Biotics is a fraud” If we are lying, then please sue us and we will prove it in court. Or, put out a press release defending yourself and explicitly blame Citron Research, and we will sue you proactively to prove that you are committing securities fraud on the investing public.

Citron has been around since 2001, but this is the first time we recall them reporting on a Chinese company. However, we doubt this is the last time since shares of China Biotics have taken a beating since Citron released their due diligence.

The last website mentioned features the "Godfather of short selling", Manuel Asensio's (www.asensio.com). Asensio, is more of a crusader type and never shy about the media. China Sky One Medical, Inc. (CSKI) has been on the receiving end of Asensio's reports since April of 2009. Recently a report about a Nasdaq official having ties to Nasdaq listed Chinese reverse mergers was published. It made for very interesting reading (available here). It is not surprising that one of the best known short sellers is moving into the China space.

Conclusion

Going forward, any companies having problems uncovered by the websites listed above will be removed from the China Vesting Index. There are just too many good Chinese companies to pay attention to ones with problems. The bar is now higher, as it should be. The level of due diligence across the board needs to be raised. That goes for the auditors, investment banks, attorneys, deal guys, and anyone else involved.

The Low Down on Accounting

Why does there seem to be more accounting problems with Chinese companies than their U.S. counterparts? The first and most basic is reason is that the Chinese companies are just cheap. We hate to generalize but that is the honest truth. Most audits from a PCAOB firms costs a Chinese company $75,000 to upwards of mid six figures per year. Keep in mind the Chairman/CEO of the company probably pays an average of $2,800 per year for an employee. Essentially he looks at the five or six auditors who will spend 3-4 months auditing the company and realizes it's the equivalent to thirty of his employees. This creates a vicious cycle where the lost cost provider wins.

The irony is that because most of these Chinese companies have decent sized businesses hiring the little dinky accounting firms is what creates the most potential for problems. Most of these Chinese companies, if they were American would undoubtedly hire one of the top ten global accounting firms to handle their audits. However, seeing that the Chairman/CEO wants to keep his costs minimal the lowest bidder wins.

In our opinion this going to change because the market is already voting to ignore Chinese stocks due to a lack of trust. Without trust the basic premise of investing is gone and people would just rather put their money in a mattress.

No Longer Mom & Pop

The story that is missing for the most part resides in the fact that most of the Chinese companies that become public here in the U.S. are run like a mom and pop operations. Unlike in the U.S., as companies get bigger, systems are put into place...management systems, accounting systems, all kinds of systems. Why? Labor is expensive so U.S. companies increase efficiency and save costs by utilizing systems. However, in China, labor is so much less than expensive than implementing systems that it makes more sense to have a bunch of people doing a bunch of things. The concept of "lean and mean" is foreign to China companies because the culture is one of "farming and manufacturing" not marketing. This is going to sound terrible...but the focus is really more about being the "king" with thousands of servants/employees rather than a small crew and maximizing profits.

Two years ago we visited an agricultural company that had over $200 million USD in revenue and only paper accounting. That's right...not even Excel was used. All of the company's accounting could have resided on a single blackberry but instead the paperwork filled up a nice one bedroom apartment. The management behind these Chinese companies is just not used to the Western world of doing things. The agricultural company from earlier...did we mention that all employees double as farmers during harvesting season (working on the Chairman's land). Need we say more?

Will these companies ever "GET IT"? Collectively it is going to take a few generations...but we can tell you that the Chairman/CEO holds the key. Out of all the companies we have visited or spoken to there are a few bright exceptions that understand what it takes to be a successful U.S. public company. They are few and far between but there are enough to keep China Vesting busy.

The China 100 stock index climbed back 13.42 points or 1.64% to 833.79. The Panda China Large Cap Stock Index won 17.50 points or 1.79 % to close at 995.94. The Tiger China Small & Mid Cap Stock Index jumped 15.18 points or 1.90% to close at 813.13 and the Dragon China Undervalued Stock Index gained 5.65 points or 0.82 % to close at 698.34.

RedChip Companies, Inc., today announced that Clayton Fong, Executive Vice President of U.S. Operations at L & L Energy (LLEN) [10.32, 0.66, +6.83%] will deliver the keynote lunch presentation at 12:20 p.m. EDT during the RedChip 2010 Midsummer Elite Equities Conference on July 21, 2010 at the NASDAQ MarketSite (4 Times Square) in New York City. L&L, a U.S.-based company operating coal businesses in China, is one of 14 emerging growth companies scheduled to present at the conference. RedChip investor conferences are a nationally known forum at which emerging small-cap companies present their stories to hundreds of retail brokers, institutional brokers, fund managers, portfolio managers, accredited investors, and research analysts whose disciplined focus toward the small-cap markets represents their core investment strategies.

AgFeed Industries Inc. (FEED) [3.01, 0.11, +3.79%] a China-based pork and animal feed manufacturer said Tuesday it will buy U.S. hog producer M2P2 LLC for $16 million in cash and stock in a move to further modernize its farming methods and nearly triple its hog production by 2015. With sow operations in Colorado, Oklahoma and North Carolina, and finishing operations centered in Iowa, M2P2 produces 1.3 million pigs annually. The Ames, Iowa-based company teamed up with AgFeed last May to establish a management company in Asia, AgFeed International Protein Technology Corp., which is focused on introducing the Western model of pork production to China and Asia.

AgFeed, a U.S. company with its primary operations in China, says the purchase price is comprised of 80 percent cash and 20 percent AgFeed stock. It is expected that M2P2 Chairman John Stadler will join AgFeed's board when the deal is completed. The company said the deal won't impact staffing and all employees will be retained. Fred Rittereiser, a special adviser to AgFeed, said the M2P2 acquisition will help AgFeed boost its hog production by implementing more efficient Western-style production methods.

Agilysys, Inc., a provider of information technology and hospitality software solutions, announced that Melco Crown Entertainment Limited (MPEL) [3.85, 0.12, +3.22%] a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, has selected the Stratton Warren System inventory and procurement solution for its gaming properties in Macau. The solution will be implemented at Altira Macau, an upscale casino hotel located in Taipa; City of Dreams, an integrated urban resort located in Cotai that includes hotels, casinos, restaurants, retail shops and entertainment; and the Mocha Clubs, which feature approximately 1,500 gaming machines in eight locations, comprising the largest non-casino based operation of electronic gaming machines in Macau.

Solarfun Power Holdings Co., Ltd. (SOLF) [9.67, 0.38, +4.09%] a vertically integrated manufacturer of silicon ingots and photovoltaic ("PV") cells and modules in China, today announced that Jiangsu Linyang Solarfun Co., Ltd., a wholly owned subsidiary of Solarfun, has obtained a credit facility in the amount not exceeding RMB6 billion, or an equivalent amount of foreign currency, from Bank of Shanghai, Nanjing branch (the "Bank"). The contract has a term of 5 years. Specific drawdowns against this facility are subject to internal review and approval by the Bank.

Trina Solar Limited (TSL) a leading integrated manufacturer of solar photovoltaic ("PV") products from the production of ingots, wafers and cells to the assembly of PV modules, announced that it will hold its 2010 Annual General Meeting of Shareholders on Friday, August 6, 2010 at 9:00 a.m. Beijing Time. The meeting will be held at the Board Room, Changzhou Trina Solar Energy Co., Ltd., No. 2 Tian He Road, Electronics Park, New District, Changzhou, Jiangsu Province, 213031, People's Republic of China. All shareholders of record as of June 29, 2010 will be eligible to vote. Shares of Trina Solar gained today 0.62 points or 2.69% to 23.70.

Mindray Medical International Limited (MR) a leading developer, manufacturer and marketer of medical devices worldwide, today announced that it will report its financial results for the second quarter ended June 30, 2010 after the U.S. market closes on August 9, 2010. Mindray's management will hold an earnings conference call at 8:00 AM on August 10, 2010 U.S. Eastern Time (8:00 PM on August 10, 2010 Beijing/Hong Kong Time). Mindray closed today trading session with a gain of 5.43% to 30.11 per share.

Yuhe International, Inc. (YUII) [8.93, 0.83, +10.25%] a leading supplier of day-old chickens raised for meat production, or broilers, in the People's Republic of China today announced that the Company's wholly owned subsidiary, Weifang Yuhe Poultry Co., Ltd., entered into an asset purchase agreement with Liaoning Haicheng Songsen Stock Farming and Feed Company Limited to purchase five breeder farms in Haicheng City, Liaoning Province for RMB 21.3 million (approximately $3.1 million).

Concurrently, Weifang Yuhe entered into a service agreement with Mr. Zhaolin Jiang, the controlling shareholder of Haicheng Songsen, who provides Weifang Yuhe with certain services related to completing the asset purchase transaction in exchange for 300,000 restricted shares of Yuhe common stock calculated at a price of $10 per share with total consideration equal to approximately RMB 20 million. The restricted shares are subject to a six-month lock-up period.

The five breeder farms have a total production capacity of 430,000 sets of parent breeders, covering an area of approximately 52 acres with building coverage of approximately 680,000 square feet. The assets to be purchased include the buildings and equipment for the acquired breeder farms, and the land leasing rights, which range from 14 years to 24 years. Upon the closing of the transaction, Yuhe will have a production capacity of 2.23 million sets of parent breeders to be the largest farmer of parent breeders and the largest producer of day-old broilers in terms of production capacity in China.

The Company plans to spend RMB 1.6 million (approximately $0.2 million) to upgrade the facilities and RMB 200,000 (approximately $29,400) for employee training. The average cost for the Company to acquire these breeder farms (including the expenses for facility upgrades and employee training but excluding land rent and new-issued-share price premium) is approximately 20% to 25% lower than the cost of building such farms from scratch. The unit cost of day-old broilers in those farms is expected to decrease by 2% to 3% compared to the Company's current cost structure due to lower depreciation and operating expenses. The Company expects to have sufficient cash after the payment for this acquisition to fund the renovations and daily operations of the acquired facilities.

Solarfun Power Holdings Co., Ltd. (SOLF) [9.29, 0.69, +8.02%] a vertically integrated manufacturer of silicon ingots, wafers and photovoltaic ("PV") cells and modules in China, today announced its plan to increase its cell capacity by 50 MW through the enhancement of its manufacturing processes, and to convert 160 MW of its existing cell lines to high-efficiency selective emitter technology, both to be completed in the early first quarter of 2011. The Company's cell capacity is expected to reach 550 MW by the early first quarter of 2011. The addition of 50 MW incremental capacity will be achieved through debottlenecking and the enhancement of manufacturing processes without the purchase of any new cell lines.

Also by the early first quarter of 2011, the Company plans to finish converting 160 MW of its existing cell capacity to high efficiency cell capacity through the introduction of selective emitter technology. The Company's approach is expected to realize efficiency targets exceeding 18.5% and 17.0% for monocrystalline and multicrystalline cells, respectively. The Company also announced that new manufacturing complexes are currently under construction allowing for major future cell and module capacity additions. These facilities will be completed during the first half of 2011 and are expected to provide the ability to add 500 MW of cell capacity and 1.2 GW of module capacity.

Orient Paper (ONP) shares slid Monday despite the Chinese paper company's recent announcement that it had hired a third-party investigator to examine allegations about its revenue. Orient Paper shares were down 23 cents, or 3.9%, to 5.66 Monday after the company said Friday it has retained law firm Loeb & Loeb, which plans to work with its audit committee to retain a Big Four audit firm, to conduct an independent investigation into allegations of fraud by a research firm. In Friday's announcement, Orient Paper CEO Zhenyong Liu said that he is "confident that this investigation will vindicate the company's financial disclosures to be accurate in all material respects."

Mindray Medical International Limited (MR) [28.36, 0.86, -2.92%] a leading developer, manufacturer and marketer of medical devices worldwide, today announced updates on new product launches for the first half of 2010. In the first half of the year, the company successfully released a total of four products across its three product lines. These include: a lower-end surgical bed, an additional advanced biochemistry analyzer; a feature-enhanced hand-carried color ultrasound system; and a new digital radiography system model.

Yongye International, Inc. (YONG) [7.47, 0.31, +4.33%] a leading manufacturer, developer and distributor of "Shengmingsu" brand plant and animal nutrient products in China, today announced preliminary revenue results for the second quarter ended June 30, 2010, and updated its sales guidance. Yongye expects to report preliminary unaudited revenue for the second quarter of 2010 of approximately $89 million, a 93.5% increase from $46 million for the same period last year.

For the first half of 2010, approximately 39% of sales came from Guangdong, Henan, Hubei and other provinces in central and southern China that are outside of the five traditionally strong provinces in northern China where the Company's business originated and where the bulk of revenues have historically been generated.Yongye also updated its revenue outlook for 2010 and now expects full year 2010 revenue of between $180 million and $185 million, compared with the previously provided guidance of between $160 million and $165 million. The Company plans to provide updated net income guidance when it reports its second quarter financial results in full next month.

Orient Paper, Inc. (ONP) today announced that in order to provide the highest level of transparency to its shareholders, the Company's Board of Directors has decided to retain Loeb & Loeb LLP, who plans to work with the Company's Audit Committee to retain a Big Four audit firm, to conduct an independent investigation into the issues raised by Muddy Waters, LLC ("Muddy Waters").

"The Audit Committee of the Board of Directors of Orient Paper firmly believes that the allegations made by Muddy Waters are categorically false and without merit," stated Mr. Drew Bernstein, Independent Director and Audit Committee Chair. "We have decided to take the exceptional step of retaining a top-tier international law firm and a Big Four audit firm to conduct an independent third-party investigation into these accusations in order to further reassure our investors of the integrity of our financial statements, business operations, customer and supplier relationships, and the use of proceeds from our capital markets activities."

Mr. Zhenyong Liu, Chief Executive Officer, added, "We are confident that this investigation will vindicate the company's financial disclosures to be accurate in all material respects." Orient Paper, Inc., through its subsidiary, Hebei Baoding Orient Paper Milling Company Limited, engages in the production and distribution of paper and paper products in the People’s Republic of China. Shares of Orient Paper closed in the red today at 5.89 off 0.42 to lose 6.66%.

Tianyin Pharmaceutical (TPI) [2.71, 0.09, -3.21%] a pharmaceutical company that specializes in patented biopharmaceutical, modernized traditional Chinese medicine and branded generics provides progress update on its Jiangchuan macrolide facility. The construction of the facility is on schedule, targeting August for completion and equipment installation, immediately followed by GMP certification and trial production. The state-of-the-art macrolide facility, occupying 100mu [~16.5 acres] of land at Sichuan Xinjin Industrial Park near Chengdu, is designed for a total annual capacity of 240 tons of macrolide Active Pharmaceutical Ingredients [API] to serve the growing macrolide antibiotics market.

Dr. Jiang Guoqing, CEO of Tianyin Pharmaceutical pointed out, "Jiangchuan macrolide initiative expands our scope of business into the large arena of antibiotics. Jiangchuan is not only of great strategic significance and sustainable economic benefits, but also projected to become a leading manufacturer of macrolide antibiotics in China. It captures the growth momentum created by the ongoing healthcare reform. The steady increase of the macrolide raw material prices reaffirmed our market forecast. Additionally, the API business has an efficient profit chain that consists of three key elements: 1) raw material processing, 2) API production, and 3) sales, which are favorable for its healthy cash flow and resilient profit margins."

Taiwan Semiconductor Manufacturing Co. (TSM) [9.92, 0.23, -2.27%] whose clients include a number of high-tech companies like Broadcom Corp., Qualcomm, Marvell and many others, announced today that it is planning to invest $9.4 billion in a new plant in Taiwan. The company is expecting to deliver record profits in 2010 and is set to release its earnings for this quarter at the end of July. Shares of Taiwan Semiconductor closed Friday in the red at 9.92 off 0.23 losing 2.27%.

Telestone Technologies Corporation (TSTC) closed today among the ten best stock performers at 9.23 per share gaining 0.11 points or 1.21%. Telestone today introduced net income guidance of $22.9 million which excludes non-cash stock based compensation charges. Net profit margins are projected to be 17.7%. Management reaffirmed revenue guidance of $129.4 million for the year ending December 31, 2010.

"Demand for our proprietary, high-margin WFDS product line has accelerated as a result of Beijing's January directives to unify the delivery of telecommunication networks, TV networks, broadband data and internet access systems," stated Han Daqing, President and Chairman of the Board of Telestone Technologies. "The installation process for our WFDS business is more efficient than our traditional projects and requires less resources and working capital. We expect this to be a catalyst for both growth and margin expansion in the second half of this year and estimate that WFDS will represent at least 30% of total revenues for 2010. As a result of strong orders and improved visibility, we are reaffirming our revenue guidance of $129.4 million for 2010 and our previously stated gross margin guidance of 42%.”

China Housing & Land Development, Inc., (CHLN) [2.09, -0.04, -1.88%] today reported preliminary contract sales results for its second quarter ended June 30, 2010. During the second quarter ended June 30, 2010, contract sales of China Housing and Land Development, Inc. totaled RMB 266.6 million (US$39.4 million), representing a 93.2% increase from RMB 138 million (US$20.4 million) for the second quarter of 2009 but a 14% decrease from the RMB 310 million (US$45.8 million) in sales for the first quarter of 2010. The Company's average residential selling price per square meter in the second quarter of 2010 was RMB 5,460, a 23% increase from RMB 4,432 in the second quarter of 2009 and a 7% increase from RMB 5,099 in the first quarter of 2010.

Contract sales are reported under the percentage of completion accounting method for revenue recognition and may not be fully recognized in the second quarter. According to data from E-House [China] and the Xi'an Bureau of Statistics, Xian's residential sales in the second quarter of 2010 totaled 3.0 million square meters with an average selling price of RMB 5,862, a 26% increase in sales volume and 6% increase in sales price compared to the first quarter of 2010. In the second quarter of 2009, residential sales totaled 2.9 million square meters with an average sales price of RMB 4,714 per square meter. Total sales volume and sales price increased 5% and 24%, respectively, on a year-on-year basis.

Mr. Xiaohong Feng, Chief Executive Officer of China Housing & Land Development, said, "Our second quarter contract sales were impacted by national policies implemented in April of 2010 to curb speculation in the real estate market. In spite of the lower sequential sales, our average residential sales price improved and our contract sales performance was significantly higher than the second quarter of 2009. The majority of revenue was generated from our JunJing Two Phase II and Puhua Phase One projects."

Chinese Internet media company Sina Corp.(SINA) jumped the most in eight months in New York after Susquehanna upgraded the shares to “positive” from “neutral” and said the company’s microblogging network, Sina Weibo, will expand to as many as 120 million users by 2012. Sina added more than 50 advertisement customers during the World Cup, said Guan Duhong, Chief Operation Officer of the company. Sina climbed 8.35 percent to $39.72, the biggest gain since Nov. 17. Susquehanna’s target price is $50 per share.

China Mass Media Corp. (CMM) [1.81, 0.13, -6.70%] a leading media company in China, today announced that it would further delay the filing of its annual report on Form 20-F for the fiscal year ended December 31, 2009 (the “2009 Annual Report”). The Company had previously filed for an automatic extension of the filing deadline until July 15, 2010 pursuant to Rule 12b-25 of the United States Securities Exchange Act of 1934.

The delay is due to the fact that the Company requires additional time to obtain further confirmation from its customer CCTV to assess the appropriateness of the revenue that was previously recognized by the Company in the three-month period ended June 30, 2009 in the amount of RMB 14.6 million (US$2.1 million) relating to the special events services the Company provided to CCTV in 2008. The Company is working diligently to obtain such further confirmation, complete the assessment and file the 2009 Annual Report as soon as possible. Pending the completion of its assessment, the Company cannot estimate at this time whether any adjustments to previously announced financial results will be required.

Because the Company has delayed its filing of the 2009 Annual Report, it anticipates that it may receive a notice from the New York Stock Exchange that it did not timely file the 2009 Annual Report. The Company expects that this notice will be issued in accordance with standard NYSE procedures and that the notification will not have an immediate effect on the listing of the Company’s American depositary shares.

China Direct Industries, Inc. (CDII) [1.21, 0.02, +1.68%] a U.S. owned holding company operating in China in two core business segments, pure magnesium production and distribution of basic materials, announced today that its board of directors has approved the acquisition of an 80% interest in Taiyuan Ruiming YiWei Magnesium Industry Co., Ltd. from Pine Capital Enterprises, Inc. and Taiyuan Yiwei Magnesium Industry Co., Ltd. for a combination of cash and stock of approximately $6.6 million. In addition, Pine Capital and Yiwei Magnesium are entitled to receive an additional RMB 5.5 million (approximately $808,824) in cash or 622,172 shares of its common stock if Ruiming Magnesium achieves gross revenues of at least RMB 100 million (approximately $14.7 million) during its fiscal year ending September 30, 2011 with EBITDA of no less than RMB 1,200 per metric ton of goods produced during that fiscal year.

The China National Offshore oil Corporation (CEO) [160.65, 3.16, -1.93%] is eyeing Argentina and other Latin American countries for oil and gas development. CNOOC will facilitate this through a joint venture set up in March this year with Bridas Energy Holdings [BEH] of Argentina, said Fu Chengyu, president of CNOOC during a meeting with Julio de Vido, Argentinean minister of planning and development. Fu said cooperation between CNOOC and BEH would increase the business link between China and Argentina, as well as with other countries in Latin America.

CNinsure Inc. (CISG) [24.37, 0.66, -2.64%] a leading independent insurance intermediary company operating in China, today announced its previously announced public offering of 4,600,000 American depositary shares ("ADSs"), each representing 20 ordinary shares of the Company, was closed on July 14, 2010. CNinsure received net proceeds of approximately $109.6 million, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

The offering was made under CNinsure's currently effective shelf registration statement on Form F-3 filed with the Securities and Exchange Commission on July 7, 2010. This press release does not constitute an offer to sell, or the solicitation of an offer to buy, securities, and does not constitute an offer, solicitation or sale in any jurisdiction in which such offer; solicitation or sale would be unlawful. The Company's registration statement on Form F-3 and final prospectus supplement may also be obtained from the Securities and Exchange Commission's website.

Trina Solar (TSL) [21.98, 0.18, +0.83%] an integrated manufacturer of solar photovoltaic modules has named Sean Tzou as the company's chief strategy officer and Gary Yu as senior vice president of operations. Mr Tzou served as the company's COO from March 2007 until June 2010. The new position will allow Mr Tzou, who assumed responsibilities as the head of global sales and marketing in August 2009, to focus on key strategic growth areas including sales team management, channel optimization and brand enhancement and promotion. He will continue to serve as a director on Trina Solar's board of directors.

Tongxin International Ltd. (TXIC) [4.71, 0.06, -1.26%] a China-based manufacturer of engineered vehicle body structures ("EVBS" or "truck cabs") regrets to inform its shareholders that it is unable to publish its Audited Consolidated Financial Statements for the year ended December 31, 2009 within the extended timeframe of July 15, 2010. The Company is in the process of obtaining adequate documentation to support and determine the appropriate accounting treatment of certain related-party transactions of approximately US $7.7 million with a related party, Meihua Bus. Tongxin will file audited financial statements as soon as they become available.

CNOOC Gas & Power Ltd, a subsidiary of China National Offshore Oil Corporation (CNOOC) [163.81, 5.39, -3.19%] has started formal run of LNG power generating unit in Fujian. According to a statement posted in the company's website, the unit is equipped with four LNG power generators with total installation of 1,560 MW. The LNG imports via CNOOC's terminal in Fujian will be the major source to feed the power plant. CNOOC, China's largest offshore oil and gas producer and the parent of CNOOC Ltd has signed LNG deal with foreign supplier to ensure 2.6 million metric tons of LNG imports every year from Indonesia to the company's Fujian LNG terminal.

China Housing & Land Development, Inc., (CHLN) [2.21, 0.01, +0.45%] today reported preliminary contract sales results for its second quarter ended June 30, 2010. During the second quarter ended June 30, 2010, contract sales of China Housing and Land Development, Inc. totaled RMB 266.6 million (US$39.4 million), representing a 93.2% increase from RMB 138 million (US$20.4 million) for the second quarter of 2009 but a 14% decrease from the RMB 310 million (US$45.8 million) in sales for the first quarter of 2010. The Company's average residential selling price per square meter in the second quarter of 2010 was RMB 5,460, a 23% increase from RMB 4,432 in the second quarter of 2009 and a 7% increase from RMB 5,099 in the first quarter of 2010.

HSW International, Inc., a US-based developer and operator of Internet businesses focused on providing locally relevant, high quality information, today announced a content distribution and branding relationship for its BoWenWang website with NetEase (NTES) [33.39, -0.91, -2.65%] one of China's largest web portals with over 500 million page views per day. BoWenWang is a leading online source for knowledge and high quality information in China. NetEase will feature BoWenWang's high-quality, credible articles on a BoWenWang branded section of NetEase's portal, allowing NetEase users convenient access to vast amounts of professional and high quality information.

Yanzhou Coal Mining (YZC) plans to pay cash dividends of 0.25 yuan per share for fiscal year 2009, according to a company filing. The ex-dividend date is July 20 while the dividend payment date is July 26. Based on its total share capital of 4.9184 billion shares, the company expects to pay a total of 1.2296 billion yuan in dividends. Shares of Yanzhou Coal Mining lost 0.41 points or 2.01% to close at 19.99 today.

Suntech Power Holdings (STP) [2.21, 0.01, +0.45%] announced that Amy Yi Zhang will assume a new role as Vice President in charge of Suntech's strategic project finance initiatives. Zhang has served as the company's CFO since August 2005 and a director since 2007. She will focus on strategic initiatives including building stronger relationships with key project finance partners and developing value-added solutions to support sales growth. The company also said that it is looking to identify and recruit a CFO, but added that Zhang will continue until a replacement is found.

Agria Corporation (GRO) [1.31, 0.02, +1.55%] a China-based agriculture company with investments in key agriculture markets of China and New Zealand, today announced that it has entered into definitive agreements to divest Taiyuan Primalights III Agriculture Development Co., Ltd., or P3A, to Mr. Frank Xue, the president and a director of P3A, in line with the agreement in principle announced by Agria on June 29, 2010. Given that all closing conditions were satisfied, this transaction was simultaneously completed.

As a result of the transaction, Agria has acquired from Mr. Xue and cancelled shares representing 11.5% of its issued and outstanding share capital immediately prior to the transaction. As of today’s date, 110,766,600 ordinary shares of Agria, equivalent to 55,383,300 ADSs (each ADS represents two ordinary shares of Agria), remain issued and outstanding. The leases over nine parcels of land totaling approximately 13,500 acres previously held by P3A have been retained by the Agria group.

As a result major US stocks along with US-listed Chinese stocks posted profits Tuesday. The China 100 stock index won 14.45 points or 1.76% to 837.53. The Panda China Large Cap Stock Index climbed back 10.38 points or 1.06% to close at 994.01. The Tiger China Small & Mid Cap Stock Index jumped 20.28 points or 2.53% to close at 822.45 and the Dragon China Undervalued Stock Index won 7.63 points or 1.11% to close at 697.46.

China Kangtai Cactus Bio (CKGT) [1.35, 0.06, -4.26%] a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that it has entered into an equity purchase agreement with Kodiak Capital Group, LLC to support its expansion and growth strategies. The company intends to use $1 million in proceeds to help finance marketing projects for its cactus-based cigarettes and soft drinks. The company also plans to acquire additional equipment for its newly purchased cigarette manufacturing plant and its soft drinks operations to enhance current and future production capacity.

ReneSola Ltd. (SOL) [7.30, 0.18, -2.41%] announced on July 1st its preliminary second quarter results and gave an updated second half guidance. Revenue is expected in the range of $245 million to $255 million which exceeds the prior guidance of $230 million to $250 million. It is also up 21% to 25.8% from first quarter revenue of $206.6 million. Gross profit margin also is projected to jump to the range of 28% to 30%, far exceeding its previous guidance range of 21% to 23%. Total solar shipments also exceed the company's prior range as it is projected to be 250 megawatts [MW] to 260 MW, up from 230 MW to 250 MW.

LDK Solar Co., Ltd. (LDK) [6.15, 0.23, +3.89%] a leading manufacturer of solar wafers and PV products, today announced that it has signed a module supply contract with Italy-based Enel.Si S.r.l., a wholly owned subsidiary of Enel S.p.A. Under terms of the agreement, LDK Solar will supply Enel with LDK Solar branded modules totaling 50 megawatts [MW], 30 MW deliverable in this quarter and an option for an additional 20 MW in the fourth quarter of 2010. "As demonstrated by this contract, our module business continues to build momentum. We hope to continue to expand our relationship with Enel and partner on future projects." stated Xiaofeng Peng, Chairman and CEO of LDK Solar.

Longtop Financial Technologies Limited (LFT) [32.17, 0.22, +0.69%] a leading software developer and solutions provider targeting the financial services industry in China, today announced that the Company has won a contract from a leading brokerage firm in China to provide Business Intelligence [BI] solutions. Under the contract for the initial phase of the project, Longtop will design and implement a centralized data warehouse to support the customer's current and future analytical applications; integrate data from its transaction and other business systems; and develop an initial data quality management platform.

Agilysys, Inc., a leading provider of innovative information technology and hospitality software solutions, today announced that Melco Crown Entertainment Limited (MPEL) [3.94, 0.18, +4.79%] a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, has selected the Stratton Warren System inventory and procurement solution for its gaming properties in Macau. The solution will be implemented at Altira Macau, an upscale casino hotel located in Taipa; City of Dreams, an integrated urban resort located in Cotai that includes hotels, casinos, restaurants, retail shops and entertainment; and the Mocha Clubs, which feature approximately 1,500 gaming machines in eight locations, comprising the largest non-casino based operation of electronic gaming machines in Macau.

Universal Travel Group (UTA) [6.30, 0.21, +3.45%] a leading travel services provider in China offering package tours, air ticketing, and hotel reservation services, today announced a partnership with Agoda, a subsidiary of Priceline.com, to strengthen its hotel reservation business segment and upgrade its website. Under the agreement, Universal Travel Group will offer its customers access to Agoda's international network of hotels. Through the updated cnutg.com website, travelers will be able to enjoy special Agoda promotions and instant confirmation at tens of thousands of hotels worldwide.

Today at the Intersolar North America conference Yingli Green Energy Holding Company Limited (YGE) [12.23, 0.37, +3.12%] announced that its U.S. subsidiary, Yingli Green Energy Americas, Inc., has been selected to provide 15 megawatts of solar modules for 16 solar power systems at multiple Kaiser Permanente hospitals and office facilities across California. Nearly 65,000 Yingli Solar multicrystalline modules are being delivered between now and mid-year 2011. The modules were chosen by the project's designer and installer, Swinerton Renewable Energy, a San Francisco-based green building leader, as well as the plant's owner and operator, Recurrent Energy, a San Francisco-based independent power producer. The projects will generate approximately 180 union and green jobs in California.

Yingli Green Energy Holding Company (YGE) has announced the initial production of its latest 400MW capacity expansions. The new solar photovoltaic [PV] manufacturing lines include a 300MW Panda monocrystalline silicon based production capacity at the company's Baoding headquarters, and a 100MW multicrystalline silicon based production capacity in Haikou, Hainan province.

Trina Solar (TSL) today announced, Mr. Sean Tzou has been appointed to the new position of Chief Strategy Officer. Mr. Tzou served as the Company's Chief Operations Officer from March of 2007 until June of 2010. The new position will allow Mr. Tzou, who assumed responsibilities as the head of global sales and marketing in August of 2009, to focus on key strategic growth areas including sales team management, channel optimization and brand enhancement and promotion. Mr. Tzou will continue to serve as a director on Trina Solar's Board of Directors.

Trina Solar (TSL) also reported, Mr. Gary Yu, who served as Trina Solar's Vice President of Manufacturing since May of 2007 has been promoted to the position of Senior Vice President, Operations, and will continue to manage daily responsibilities of manufacturing and operations management. Mr. Yu's role will remain focused on key internal operations areas such as manufacturing cost reduction, and will now include capacity expansion and supply chain management.

The China 100 stock index lost 7.94 points or 0.95% to 823.71.The Panda China Large Cap Stock Index dropped 10.14 points or 1.02% to close at 983.63. The Tiger China Small & Mid Cap Stock Index fell 4.83 points or 0.60% to close at 802.18 and the Dragon China Undervalued Stock Index slid 11.53 points or 1.64% to close at 692.34.

Asia Cork Inc (AKRK) is today’s worst stock performer by losing 23.33% to 0.23 per share. Melco Crown Entertainment Ltd. (MPEL) is down 5.53% to 3.76 per share. Approximately 1.1 million Melco Crown shares have traded hands today vs. 30-day average volume of 7.5 million shares. Shares of Melco Crown Entertainment are currently trading below their 50-day moving average of 4.09 and below their 200-day moving average of 4.52.

China Automotive Systems, Inc. (CAAS) [17.20, 0.26, -1.49%] a leading power steering components and systems supplier in China, announced today that its subsidiary, Wuhan Jielong Power Steering Co. Ltd., has received a purchase order from Changan Automobile Company, for A10 electric power steering ["EPS"] units. Changan, one of the top 5 automotive manufacturers in China, has been a customer for CAAS's hydraulic power steering for two years. The Company's EPS products successfully passed Changan's trial order and received positive feedback for its road test performance and quality standard. CAAS has now begun commercial shipments to Changan.

China Marine Food Group Limited (CMFO) [4.92, 0.18, -+3.80%] today reported that its Chairman and CEO, Mr. Pengfei Liu, has purchased a total of 245,500 shares of his own Company's stock from the open market. On July 2 and July 8, China Marine filed two separate SEC Form 4 documents detailing Chairman Liu's share purchases of a total of 245,500 shares between at average of $3.91 and $4.34. SEC Form 4 documents must be filed with the SEC when any 10% or greater shareholder purchases or sells shares. The number of shares and price of shares are detailed on each Form 4 in addition to the name and address of the shareholder. As a result of the Chairman's purchase of shares, Mr. Liu's ownership in the Company increased from 41.4% to 42.3%.

JA Solar Holdings Co., Ltd. (JASO) [5.88, 0.28, -4.55%] a leading manufacturer of high-performance solar power products, today announced that it has signed strategic agreements with Innovalight, Inc. JA Solar signed a three-year supply agreement for silicon nanoparticle ink from Innovalight for the production of JA Solar's recently announced SECIUM high efficiency solar cells. Pilot production of the SECIUM cells began in May with commercial volume production planned in the second half of 2010.

China Security & Surveillance Technology, Inc. (CSR) [5.11, 0.04, +0.79%] a leading integrated provider of digital surveillance technology in the P.R.C., today announced that the Company's second-quarter 2010 financial results will be released on Monday, July 26, 2010 before market opens. The Company will also hold a conference call to discuss the financial results the same day at 8:00 am ET. The Company's earnings release, presentation and related materials will be available in the investor relations section of CSST's web site before the earnings call.

China Organic Agriculture, Inc, (CNOA) [0.46, 0.04, +9.52%] last Monday has engaged Li & Company, PC ("Li & Company") as its new independent registered public accounting firm to review the Registrant's consolidated financial statements as of and for quarterly period ending June 30, 2010 and September 30, 2010 and audit the Registrant's consolidated financial statements as of and for the fiscal year ending December 31, 2010. The engagement of Li & Company was approved by the China Organic Agriculture's Board of Directors.

China-Biotics, Inc. (CHBT) [13.02, 1.06, +8.86%] the leading developer, manufacturer and distributor of probiotics products in China, today provides further updates on the Company's bulk additive operation. China-Biotics gained more bulk customers during the quarter ended at June 30, 2010 and the total number of bulk customers increased to 39 by the end of June. Among the 39 customers, 4 are animal feed producers and the remaining are dairy enterprises. During the quarter, the Qingpu facility produced over 15 metric tons of bulk probiotics products and production utilization rate for the Qingpu bulk additive facility has steadily ramped up to over 60 metric tons per year.

American Oriental Bioengineering Inc. (AOB) shares traded at a new 52-week low yesterday of $2.31. Approximately 636,000 shares have traded hands yesterday vs. average 30-day volume of 865,000 shares. American Oriental Bioengineering closed at $2.17, approximately 27% below its 50-day moving average of $3.18. China BAK Battery, Inc. (CBAK) is one of today's worst performing low-priced stocks, down 5.99% to $1.57. Approximately 341,000 shares have traded hands today vs. 30-day average volume of 708,000 shares and they are trading below their 50-day moving average of $1.89 and below their 200-day moving average of $2.64.

American Lorain Corp. (ALN) [3.12, 0.12, +4.00%] a processed snack foods and convenience foods manufacturer announced it has signed a letter of intent to acquire 100% ownership of Shandong Greenpia Foodstuff Co., Ltd., a manufacturer of retail-packaged, Korean-style kimchi cold dishes. The acquisition will include cash and stock offer of $2.1 million in cash and 731,707 shares of American Lorain common stock, respectively. The company is scheduled to complete the equity exchange and obtain governmental approval on the acquisition on or before September 30.

Shandong Greenpia's 2009 posted sales revenue was around $1.5 million, which American Lorain said it expects to double after the acquisition is complete. American Lorain has tentatively forecasted $3 million in sales for 2010 as a result of expanding Greenpia's distribution and sales to 500 additional distributors in Lorain's network. Greenpia's production lines will remain in operation at Greenpia's facilities and thus American Lorain will have a total of two kimchi-style cold dish production lines with annual capacity of 3,500 metric tons.

CNinsure Inc.(CISG) [27.35, 0.57, +2.13%] a leading independent insurance intermediary company operating in China, today announced it intends to offer, subject to market and other conditions, approximately 4,600,000 American depositary shares ["ADSs"], each representing 20 ordinary shares of the Company. In addition, a selling shareholder will be offering 700,000 ADSs, subject to market and other conditions. CNinsure intends to grant the underwriters an option to purchase up to 795,000 additional ADSs. CNinsure plans to use the net proceeds of the offering to establish four new profit centers.

China Life Insurance (LFC) [67.01, 0.64, +0.96%] has signed a three billion yuan 61-month deposit agreement with Guangdong Development Bank to promote its investment business and boost cooperation between the two parties. The deposit agreement is considered a related-party transaction since China Life Insurance holds a 20 percent stake in Guangdong Development Bank. The deposit has a floating interest rate based on the benchmark rate published by the People’s Bank of China. The agreement has been approved by China Life's board.

Yingli Green Energy Holding Company Limited (YGE) [11.60, 0.65, +5.94%] a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which holds the brand "Yingli Solar" today announced the initial production of its latest 400 MW capacity expansions. The new solar PV manufacturing lines include a 300 MW PANDA monocrystalline silicon based production capacity at the Company's Baoding headquarters, and a 100 MW multicrystalline silicon based production capacity in Haikou, Hainan Province.

Orient Paper, Inc. (ONP) [6.98, 0.21, +3.10%] a leading manufacturer and distributor of diversified paper products in Hebei, China, today provided an additional response to the allegations made by Muddy Waters LLC ("Muddy Waters") in their reports of June 28, 2010 and July 1, 2010. Muddy Waters stated that "Approximately $30 million has been misappropriated since October 2009." This accusation is false. Orient Paper has appropriately allocated the proceeds from its October 2009 and April 2010 financings.

In October 2009, Orient Paper raised net proceeds of $4.9 million to purchase two digital photo paper coating lines from Hebei Shuangxing Paper Co., Ltd. The total price of the two coating lines was RMB 93 million (approximately $13.6 million). Orient Paper funded the acquisition with the proceeds of its financing and cash from operations. The price paid for the two coating lines is based on the Assets Appraisal Report issued by Baoding Chengxin Assets Appraisal Limited on October 25, 2009. This third party appraisal, which was based on the replacement cost of the subject properties, valued the two digital paper coating lines at RMB 103.6 million (approximately $15.2 million). The Company ultimately paid RMB 93 million (approximately $13.6 million) for the two lines after negotiating with the seller.

In April 2010, Orient Paper raised net proceeds of $26.9 million to purchase machinery for the Company's new corrugating medium paper production line with an annual production capacity of 360,000 tons from Henan Qinyang First Paper Machine Ltd. ("Henan Qinyang"). Henan Qinyang will assemble the machinery, with at least 60% of the parts made in China, and install it in the Company's factory over a period of six to nine months. The total price for the new machinery was RMB 190 million (approximately $27.8 million). Orient Paper has provided a copy of the definitive equipment purchase agreement for this equipment in an 8-K filing with the SEC on April 12, 2010. The 8-K filing also includes the agreed upon installment payment schedule.

Despite another bad economic report after weeks of disappointing economic reports major US stock indices posted small gains Tuesday while the China 100 stock index lost 7.64 points or 0.96% to 788.38. The Panda China Large Cap Stock Index won 6.14 points or 0.65% to close at 954.45. The Tiger China Small & Mid Cap Stock Index lost 12.37 points or 1.63% to close at 748.47 and the Dragon China Undervalued Stock Index fell 13.42 points or 1.92% to close at 685.67.

Juniper Networks said that the Shanghai Branch of China Telecom (CHA) [49.78, 2.74, +5.82%] has deployed its multi-chassis routing system in a production environment. Juniper said that China Telecom can continue scaling the core of its super metro area network in Shanghai and support Expo 2010, with the implementation of the Juniper Networks TX Matrix Plus, interconnecting Juniper Networks T1600 Core Routers. China Telecom can scale its Shanghai core network as needed with addition of more line cards including Juniper Networks' new 100GbE interface.

The Australian government recently decided to reduce the tax for mining industry, including iron ore and coal, from 40 percent to 30 percent. However, the rising production costs will still affect operation on such companies as Yanzhou Coal Mining Co., Ltd. (YZC) [19.73, 1.81, +5.40%] conducting coal exploration in Australia.Yanzhou Coal acquired Felix Resource, an Australian-based coal company, in the 2009.

JA Solar Holdings Co., Ltd. (JASO) [5.35, 0.27, +5.31%] a leading manufacturer of high-performance solar power products, today announced the results of the Company's annual general meeting of shareholders, held on June 30, 2010 in Shanghai, China. JA Solar has entered into an agreement to acquire 100 percent of the shares of Shanghai Jinglong Solar Technology Co., Ltd. from Ningjin Jinglong PV Investment Co., Ltd., a company controlled by JA Solar’s Chairman, Mr. Baofang Jin.

JA Solar is to supply solar modules to MEMC Electronic Materials starting this quarter. JA Solar has been pushing beyond its core solar cell business into a more vertically integrated structure with module production. MEMC, meanwhile, acquired solar project developer SunEdison last year to drive its effort to push out beyond its core solar wafer-making business.

AsiaInfo Holdings, Inc. (ASIA) [22.54, 0.88, +4.06%] entered into an Executive Employment Agreement, an Employment Contract, and a Confidentiality and Non-Competition Agreement with its President and Chief Executive Officer, Mr. Steve Zhang. Pursuant to the Employment Agreements, Mr. Zhang will continue to serve as the Chief Executive Officer of the Company for a three-year term, which will be automatically extended for an additional three years unless either the Company or Mr. Zhang provides the other party with 90 days prior written notice that the term will not be so extended. Mr. Zhang will receive an annual base salary in an amount determined by the Company's Board of Directors, which may be increased (but not decreased) as may be determined annually by the Compensation Committee of the Board in its sole discretion.

China National Offshore Oil Corporation, CNOOC, (CEO) [168.12, 1.62, +0.97%] China's largest offshore oil and gas producer, is to start test drill of a well in northern Kenya this week to determine the quantity and quality of natural gas. CNOOC is to bring equipment to the Boghal well in the country, in which natural gas flows were found earlier this year. According to the report, CNOOC firstly wanted to explore crude oil in the region, but it then changed its mind to focus on natural gas reserves instead.

Uganda's government has approved Heritage Oil Ltd.'s sale of its Uganda assets to Tullow Oil PLC and the entrance of Total SA and China National Offshore Oil Company (CEO) into a partnership with Tullow to develop oil discoveries, officials at Tullow and Heritage said Tuesday. Tullow agreed in January to purchase Heritage's half-share in two oil licenses for $1.35 billion in cash plus up to $150 million extra dependent on certain conditions being met within two years. The deal will briefly give Tullow 100% of the three Lake Albert licenses, but it has agreed to quickly sell on a third of these licenses to both Total SA and Cnooc.

CNinsure Inc. (CISG) [26.78, 0.62, +2.37%] a leading independent insurance intermediary company operating in China, today announced the acquisition of an additional 45% equity interest in Henan Zhongrui Insurance Agency Co., Ltd. ("Henan Zhongrui"), an insurance agency primarily engaged in the distribution of life insurance products in Henan Province. Following the completion of the transaction, CNinsure's total shareholdings in Henan Zhongrui will be increased to 55% from the 10% it previously held.

Under the agreement with the selling shareholder, the total consideration for the acquisition is subject to downward adjustment, and CNinsure's shareholdings in Henan Zhongrui will be adjusted upwards if the agency fails to fulfill the guaranteed targets related to premiums written and net income. The transaction is expected to close in the third quarter of 2010, subject to certain consents, authorizations and other customary closing conditions.

China Kangtai Cactus Biotech Inc. (CKGT) [1.42, 0.04, -2.74%] a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that it has entered into a definitive assets purchase agreement to acquire the assets of Raoping County Dadi Tobacco Trade Center. Pursuant to a definitive equity transfer agreement signed on June 28, 2010, the RMB 35 million (approximately $5.1 million) acquisition includes a building, equipment, a warehouse and established brands in Guangdong province and Macao. Dadi is a tobacco product manufacturer and wholesaler of commodity, hardware and electric equipment, it manufactures tobacco cigarettes in Guangdong province and Macao and sells them under its own brand name mainly throughout Southeast Asia including The Philippines, Taiwan and Myanmar; part of them are also sold to China.

Orient Paper Inc. (ONP) shares rallied Friday, retracing most of the week's 50% drop, as long and short investors battled over the legitimacy of the company's financial position and operational viability. Orient paper is currently responding to allegations made via a report issued by Muddy Waters on June 28, 2010, where ONP is accused of being a fraud. Orient Paper closed today at 7.30 per share with a gain of 2.21 points or 43.42%.

Biostar Pharmaceuticals, Inc. (BSPM) [2.61, 0.16, -5.78%] announced today the Registrant's board of directors appointed Mr. Deyin Chen as the Registrant's Chief Financial Officer to replace Ms. Zhao, effective July 1, 2010. Mr. Chen will serve as the Registrant's Chief Financial Officer for a one-year term and he will be entitled to receive a base pay of RMB 50,000 (approximately $7,354) per month. Additionally, upon stockholder approval of the Registrant's 2009 Incentive Stock Plan (the "Plan"), Mr. Chen will be granted a non-statutory option pursuant to the Plan to purchase up to 360,000 shares of the Registrant's common stock, at an exercise price of $2.80 per share.

Chunghwa Telecom (CHT) [20.14, 0.27, +1.36%] announced that it plans to set up four cloud computing centers catering to cloud computing services, testing, R&D and experimental services. CHT aims to become the largest cloud computing service and data center provider in Taiwan. An operational center will be located in a building complex with a total floor area of 49,600 square meters (533,700 square feet) near Taipei City, CHT indicated.

The building complex, currently under construction and to be completed in 2012, will house the largest data center in Asia, CHT said. A cloud computing R&D center will be set up with a 100-member team to focus on core technologies of cloud computing. There will also be an experience center offering a real environment for providers and users of cloud computing services, CHT noted.

GigaMedia Limited (GIGM) [2.32, 0.05, +2.20%] announced today that Everest Poker and BetClic Poker have commenced public operations in France as part of the new liberalization of online betting in France. Everest Poker and BetClic Poker are jointly owned by Mangas Gaming and GigaMedia. Everest Poker was awarded "Best Poker Operator" for two consecutive years by the independent industry journal e-Gaming Review - and is one of the top poker sites worldwide by active player numbers. Mangas Gaming is a leader in European gambling with operations including BetClic, Expekt, and Bet-at-Home; together offering sports betting, poker and casino services to over four million registered users in over 25 countries.

Ecuador is negotiating with China Development Bank Corp. for a $1 billion loan to be repaid by the sale of oil or fuel oil from state-run Petroecuador to China's state-owned PetroChina International Co. (PTR) [109.53, 0.53, -0.48%]. Ecuador is turning to China for financing after a market-unfriendly sovereign debt buyback last year and relations soured with multilateral lenders such as the World Bank and the International Monetary Fund, badly hampering its access to overseas private capital. From June 2 to June 12, representatives of the Ecuador's finance ministry and China Development Bank met in Beijing to discuss the loan.

According the minutes of the meetings, signed on June 12 and reviewed by Dow Jones Newswires, Petroecuador will supply PetroChina with 36,000 barrels of its Oriente and Napo crudes or fuel oil per day. "Petroecuador will supply oil under the oil contract until all amounts under the loan have been paid," the document said. The loan is expected to be paid off within four years. The loan will have a fixed interest rate of 6.5%.

China Petroleum & Chem ADS (SNP) [79.70, 0.82, -1.02%] will cut daily oil processing volume at its Hainan plant by 11 percent this month from June as profit shrinks. The refinery plans to process 720,000 metric tons of crude this month, or about 170,000 barrels a day, from 780,000 tons in June. The plant is making “little” profit from crude processing after the government reduced oil-product prices in June, China cut gasoline and diesel prices by about 3 percent starting June 1 after a drop in crude oil prices.

Suntech Power Holdings (STP) [9.39, 0.11, -1.16%] and Hoku Scientific, Inc. announced today that they have amended their polysilicon supply contract to remove milestones, adjust the contract term and reschedule the shipment date, according to an announcement on Suntech's website. Suntech is no longer responsible for a previously schedule prepayment of $30 million, but Hoku does not have to refund a $2 million prepayment, the announcement said. The agreement was shortened to one year to match Suntech's $2 million prepayment.

Before Friday's Labor Department report is released the government said initial claims for unemployment benefits increased by 13,000 last week to 472,000. Economists had forecast claims would fall to 452,000. Analysts expect Friday's Labor Department report will show the unemployment rate increased to 9.8 percent from 9.7 percent in May, and the economy shed 100,000 nonfarm jobs after adding 431,000 in the prior month at the government for the 2010 census.

The economic recovery in US seems to be losing momentum helping to grow fear on investors about a double-dip global recession. In China, a report showed manufacturing activity slowed in June. As a result major US stock indices fell Thursday, The China 100 stock index lost 9.73 points or 1.22% to 789.86. The Panda China Large Cap Stock Index won 3.56 points or 0.38% to 948.35. The Tiger China Small & Mid Cap Stock Index lost 17.83 points or 2.25% to close at 751.94 and the Dragon China Undervalued Stock Index fell 1.35% to close at 691.90.

American Lorain Corporation (ALN) an international processed snack foods and convenience foods manufacturer based in Shandong Province, China, yesterday announced it will present at the Global Hunter Securities 2010 China Conference, being held July 11-13, 2010 in San Francisco, California. American Lorain closed today at 3.39 per share with a gain of 0.55 or 19.37%.

ReneSola Ltd. (SOL) [6.48, 0.51, +8.54] a leading global manufacturer of solar wafers and producer of solar power products based in China today announced its selected preliminary unaudited results for the second quarter of 2010 and provided its guidance for the second half of 2010. Net revenues for Q2 2010 are expected to be in the range of US$245 million to US$255 million, exceeding the company's previous guidance range of US$230 million to US$250 million and representing an increase of approximately 21.0% to 25.8% from US$206.6 million in Q1 2010. Gross profit margin is expected to be in the range of 28% to 30%, exceeding the Company's previous guidance range of 21% to 23% and compared to 17.1% in Q1 2010.

AsiaInfo Holdings, Inc. (ASIA) [21.68, 0.18, -0.82%] a leading provider of telecom software solutions and IT security products and services in China, today announced that it has closed its previously announced agreement to merge with Linkage Technologies International Holdings Limited ("Linkage") and form AsiaInfo-Linkage, Inc. ("AsiaInfo-Linkage"). AsiaInfo's President and Chief Executive Officer, Steve Zhang, commented, "For over ten years, both AsiaInfo and Linkage have evolved into influential market players in the telecom IT software and solutions vertical, developing best-of-class products and cultivating strong relationships with the three telecom carriers in China. As a result of the completion of this transaction, AsiaInfo-Linkage will boast an expanded service offering, stronger R&D capacity and complementary customer bases for cross-selling opportunities.

NF Energy Saving Corp. (NFEC) [2.55, 0.00, 0.00%] a leading energy saving services provider for China's power, petrochemical, coal, metallurgy, construction, and municipal infrastructure development industries, announced today that it has retained CCG Investor Relations to design and execute its investor relations campaign. "We look forward to working closely with CCG to establish and enhance our profile in the U.S. investment community and improve our communication with investors, media outlets and our shareholders," said Mr. Gang Li, Chairman and CEO of NF Energy. "Given CCG's track record of professional experience representing a wide spectrum of high growth, U.S.-listed Chinese companies, we are confident that our new partnership will help us build long term shareholder value."

QKL Stores Inc. (QKLS) [4.00, 0.20, -4.76] a leading regional supermarket chain in Northeastern China, today announced the Company has cancelled its building purchase agreement with Xiandong Zhang ("the Seller") for its new headquarters in Daqing, China. Under the original agreement which occurred on December 30, 2009, QKL agreed to pay RMB 75 million (approximately $11.0 million) to purchase a five story, 4,897 sq. meter building in Daqing to replace the Company's existing headquarters which the Company has outgrown. The building purchase agreement was terminated because the Seller was unable to complete the property transfer procedures of the PRC, which required the delivery of a Property Ownership Certificate and Land Use Right Certificate within 60 days of the execution of the Purchase Agreement.

The Seller was also unable to register the property ownership in the name of QKL which was required under the Purchase Agreement. The Termination Agreement provides that since the Seller breached the Purchase Agreement, the RMB 75 million (US $11.0 million) purchase price is to be refunded to the Company. The purchase price was refunded to the Company on June 28, 2010. The Company has reached an agreement with Xiandong Zhang to lease this same building facility, which is intended to accommodate future growth of the Company's administrative and operations personnel as it implements its supermarket expansion plan.

China Marine Food Group Limited (CMFO) [4.14, 0.32, +8.38%] today announced it will present at the Global Hunter Securities 2010 China Conference, being held July 11-13, 2010 in San Francisco, California. Global Hunter Securities, LLC is a full service investment bank focusing on middle market corporate and institutional clients around the world. The firm provides insightful research, innovative capital raising and financial advisory and restructuring services supported by a sales and trading staff with world-wide reach.

Orient Paper Inc. (ONP) [6.68, 0.55, -7.61%] a leading manufacturer and distributor of diversified paper products in Hebei, China, today announced its response to allegations made via a report issued by Muddy Waters, LLC ("Muddy Waters") on June 28, 2010. Muddy Waters claims that as of the date of the report it had a short position in Orient Paper's stock. Orient Paper's stock came under increased selling pressure yesterday due to a broader decline in the market and following the publication of a report written by Muddy Waters, which cited certain allegations regarding the Company.

Muddy Waters claims in the report that as a result of its short position on the day the report was issued it stands to realize significant gains in the event that the price of Orient Paper's stock declines. Additionally, Muddy Waters states in the report that they make no representation as to the accuracy, timeliness or completeness of the information they provided. Furthermore, Muddy Waters has no apparent history of providing credible independent research or any research for that matter as they state this was their "inaugural report" and even though their research is "available as a subscription service" to institutional investors and they are available for "confidential due diligence engagements" they were making an exception with this report which is being provided "free of charge."

According to their website, Muddy Waters consists of a two-person team that, based on a review of the bios on their website, has no apparent experience in the paper industry in or outside of China. In addition, the team only visited Orient Paper's facility once for 90 minutes after a major snowstorm. The latter team member is also "fluent in spoken and written Indonesian." When this team visited the Company's facility in Baoding they offered to write a paid-for research report on Orient Paper, but the Company declined their offer.

The report issued by Muddy Waters contains many inaccuracies, omissions, fabrications, and unsubstantiated claims with a purpose of having the reader draw a conclusion that "ONP is a fraud" whose "purpose is to raise and misappropriate tens of millions of dollars." Orient Paper categorically denies these allegations and has instructed its legal counsel to contact Muddy Waters and explore all legal options against it for publishing and distributing such a report.

Universal Travel Group (UTA) [5.88, 0.47, -7.40%] a leading travel services provider in China offering package tours, air ticketing, and hotel reservation services, today announced that the Company has completed the previously announced acquisitions of Shanxi Jinyang Travel Agency Co., Ltd. ("Shanxi Jinyang") and Kunming Business Travel Agency Co., Ltd. ("Kunming Business Travel") for $8.0 million, of which 90% was paid in cash and 10% in stock. The combined audited 2009 revenue and net income for the two travel agencies was $15.3 million and $1.3 million, respectively.

Shanxi Jinyang was founded in 1988 in Taiyuan, Shanxi Province and is one of the largest travel agencies in Shanxi Province in terms of tourist volume and revenues. Shanxi Jinyang provides comprehensive travel services and has established business relationships with local travel destinations, hotels, and air ticketing agencies. Kunming Business Travel was founded in 1993 in Kunming, Yunnan Province and is the only professional and premier golf travel service agency in its region. Kunming Business Travel has partnerships with seven golf clubs and provides services, including reservations, event planning, hosting business trips and golf competitions.

A-Power Energy Generation Systems, Ltd. (APWR) [7.12, 0.15, -2.06%] a leading provider of distributed power generation systems in China and a fast-growing manufacturer of wind turbines, today announced the appointments of Mr. Kam F. Cheung to the position of Vice President of the International Division as well as Mr. Morris Li, Ph.D., to the position of Vice President of Solar Research and Development. Both appointments are effective immediately. Mr. Cheung brings to A-Power more than 20 years of business development, corporate finance, portfolio management, and securities underwriting experience including within the energy financing industry. Doctor Li contributes with proprietary PV cell production process and more than 13 years of semiconductor industry experience.

Taiwan Semiconductor Manufacturing Company, Ltd. (TSM) [9.76, 0.05, -0.51%] today announced that its 0.25-micron One-Time-Programmable [OTP] IP now meets Automotive Electronics Council [AEC] standard AEC-Q100 specification. The IP is fully compatible with TSMC Bipolar-CMOS- DMOS [BCD], mixed signal/analog and standard CMOS logic processes and does not require additional processing steps, making it an ideal System-on-Chip [SoC] choice for automotive power management and analog applications. TSMC's 0.25-micron OTP IP passes AEC-Q100 grade 1 product qualification specifications, features fully tested at multi-probe electrical testability and supports the automotive industry's stringent 10-year data retention requirement in 125 degrees Celsius operating temperatures. It is designed to operate at single 5 volt supply voltage for read operations after programming at 7.5 volt.

The China 100 stock index slumped 41.57 points or 4.91% to 804.51. The Panda China Large Cap Stock Index lost 50.22 points or 5.08% to 939.15. The Tiger China Small & Mid Cap Stock Index lost 49.82 points or 6.02% to close at 777.18 and the Dragon China Undervalued Stock Index dropped 2.25% to close at 711.57.

Tianyin Pharmaceutical Co., Inc. (TPI) announced yesterday that it will exhibit and promote its flagship product portfolio at the 45th 2010 National New Special Drugs Trade Fair at Beijing National Convention Center from July 8th, till July 10th. Tianyin's portfolio is featured by the patented Ginkgo Mihuan Oral Liquid, Apu Shuangxin, Xuelian Chongcao and others. Tianyin Pharmaceutical shares closed today at 2.90 per share with a gain of 1.75%.

China Armco Metals, Inc. (CNAM) a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, announced last Tuesday that Armet Renewable Resource Company, Limited, the Company's wholly owned subsidiary has received a certificate of approval from Lianyungang Environmental Protection Bureau for its new state-of-the-art scrap metal recycling facility. “This approval demonstrates our ability to comply with the applicable environmental protection laws at our facility for processing and distributing scrap metal to the steel industry in China." said Mr. Kexuan Yao, CEO and Chairman of China Armco.

Yayi International (YYIN) announced today, net sales for the five months ended March 31, 2010 were approximately $7.0 million, a decrease of 25.0% from the five months ended March 31, 2009. Yayi International said “This decrease was primarily due to the restructuring of our product portfolio. From the end of 2009, we worked together with Trout & Partners to streamline our product portfolio and refine our brand image in order to position and strengthen our "Milk Goat" brand as the premium goat milk brand throughout China. Thereafter, we have restructured our original product portfolio of dozens of products and specifications and refined our marketing strategy during the three months ended October 31, 2009.”

Yayi International added, “As a result, we gradually reduced the production of original products from the end of 2009 in anticipation of the introduction of our new products in January 2010. Our new product portfolio consists of only ten formula products under the "Milk Goat" brand with only one product specification of 600 grams. We suspended our sales efforts in supermarkets during these few months as we transitioned from our original product portfolio to the new one with new packaging, stock-keeping units [SKUs], and new (higher) pricing. Our new product portfolio has only been launched in the market since January 2010. Since our distributor conference, we have signed sales contracts with the distributors with an aggregate expected sales value of approximately $71.4 million (including VAT)”.

Ctrip.com International Ltd. (CTRP) is now trading at 37.61, down$5.16 losing 12.06%. Over the last 52 weeks the stock has ranged from a low of 19.45 to a high of 47.01. CTRP shares were downgraded at Deutsche Bank this morning to Hold from Buy. In a note to investors, Deutsche Bank analysts wrote, "Ctrip's recent stock rally seems largely driven by positive sentiment toward China's tourism market. However, we note that Ctrip will likely face a tougher comp in 2H10 due to the ezTravel consolidation."

American Lorain Corporation (ALN) [2.94, 0.12, -3.92% ] today announced that the company signed a letter of intent ["LOI"] to acquire Shandong Greenpia Foodstuff Co., Ltd., a manufacturer of retail-packaged, Korean-style kimchi cold dishes. On June 28, 2010, International Lorain Holding Inc. and is operating subsidiary, Junan Hongrun Food Co. Ltd, signed a LOI to acquire 100% ownership of Shandong Greenpia Foodstuff Co., Ltd. ("Shandong Greenpia"). The acquisition will include cash and stock offer of $2.1 million in cash and 731,707 shares of American Lorain common stock, respectively. The Company is expected to complete the equity exchange and obtain governmental approval on the acquisition on or before September 30, 2010.

China Agritech, Inc. (CAGC) [10.40, 1.05, -9.17% ] a leading organic compound fertilizer manufacturer and distributor in China, today announced that it has received $10 million as a result of the exercise of common stock warrants held by Carlyle Asia Growth Partners IV, L.P. and CAGP IV Co-Investment, L.P., two affiliates of The Carlyle Group. The Carlyle Group affiliates originally acquired the warrants in connection with the Company's strategic private placement, consummated on October 20, 2009. A total of 1,857,024 newly issued shares of the Company's common stock were issued from the warrant exercise. Carlyle Asia Growth Partners IV, L.P. and CAGP IV Co-Investment, L.P., received 1,705,249 shares and 151,775 shares, respectively, as a result of their exercise of the warrants

Suntech Power Holdings Co., Ltd. (STP), the world's largest producer of crystalline silicon solar panels, today opened a representative office in Montbonnot [Isere], France, to better serve its local partners throughout the region's growing solar industry. Since Suntech established its presence in France in 2008, the French solar market has become one of Suntech's top three markets in Europe. Suntech Power Holdings closed today's trading session at 9.14 per share off 0.34 losing 3.54%.

The China 100 stock index fell 4.77 points or 0.56% to 846.31.The Panda China Large Cap Stock Index lost 2.33 points or 0.23% to 989.37. The Tiger China Small & Mid Cap Stock Index lost 13.33 points or 1.59% to close at 827.00 and the Dragon China Undervalued Stock Index won 1.25% to close at 728.86.

China Shandong Industries, Inc. (CSNH) [2.50, 0.20, -7.41%] announced today that revenue for the three months ended March 31, 2010 was $19,406,737, an increase of $4,910,942, or 33.9%, from $14,495,795 for the comparable period in 2009. For the three months ended March 31, 2010, its main products, wood furniture, straw-wicker, and handicraft products, generated sales of approximately $10.9 million, $7.6 million, and $0.9 million, respectively, or approximately 56.2%, 39.2% and 4.6% of its total revenues for the three months ended March 31, 2010. Sales of its wood furniture, straw-wicker and handicraft products generated sales of approximately $8.0 million, $6.2 million and $0.3 million, respectively, for the three months ended March 31, 2009, or approximately 55.2%, 42.8% and 2.1%, respectively, of its total revenues for such period.

China Telecom (CHA) [49.29, 1.02, +2.11%] recorded a 51 percent year-on-year increase in the number of CDMA mobile phones sold to 16.97 million units in the first five months. China Telecom predicts that sales of CDMA mobile phones will total approximately 20 million units in the first half of 2010. Sales of 3G mobile phones leapt 60 percent from January to 170,000 units in May. China Telecom currently has approximately 600 models of CDMA mobile phones, of which 146 are 3G phones.

Motorola and Zoom Technologies announced today their newest mobile phones models designed specifically for the 3G network of China Telecom (CHA) which intends to achieve a mobile user base of 100 million by the end of the year. The number of CDMA mobile phones sold is expected to total 50 million CDMA mobile phones. China Telecom had 71.5 million CDMA users as of end May. The company intends to switch its focus to the mid-end mobile phones market priced at between 700 yuan to 2,000 yuan per unit in the second half of 2010.

China Mass Media Corp. (CMM) [1.81, 0.03, -1.63%] a leading media company in China, has announced that on May 22, 2010, the board of directors of the Company declared a special dividend of 71,637,500 additional ordinary shares of the Company, par value $0.001 per share, for the financial year ended December 31, 2009. The board of directors proposed that the special dividend be distributed in the form of HK Shares, subject to the approval by an ordinary resolution of the shareholders of the Company at an extraordinary general meeting to be convened on July 19, 2010. There can be no assurances that the Company will be able to achieve a successful listing of the HK Shares on the Hong Kong Stock Exchange.

Tianyin Pharmaceutical (TPI) [2.85, 0.07, -2.40%] a biopharmaceutical company that specializes in patented biopharmaceutical, modernized traditional Chinese medicine and branded generics will exhibit and promote its flagship product portfolio at the 45th 2010 National New Special Drugs Trade Fair at Beijing National Convention Center from July 8th, till July 10th. Tianyin's portfolio is featured by the patented Ginkgo Mihuan Oral Liquid for cardiovascular and central nervous system indications, Apu Shuangxin for fever, inflammation and rheumatism, Xuelian Chongcao Oral Solution for heart diseases, asthma and gynecological conditions, along with other prescription medicines that target high incidence China health care indications.

Yingli Green Energy Holding Company Limited (YGE) [10.47, 0.21, -1.97%] a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which holds the brand "Yingli Solar," today announced that it will provide its expertise in solar energy to power "20 Centres for 2010", the official campaign of the 2010 FIFA World Cup South Africa. This campaign is part of the Football for Hope movement, which is using the power of the game for positive social change. It is led by FIFA, world's football governing body, and streetfootballworld, a social profit organisation that links relevant actors in the field of development through football, and their affiliates such as Yingli Green Energy.

Yanzhou Coal Mining (YZC) [20.39, 1.31, -6.04%] announced yesterday that it will conduct a share buyback of up to 10 percent of its H-share capital. The company's registered capital will be decreased on a pro rata basis due to the write off of its share capital. The company's creditors are entitled to claim their rights from June 28. Yanzhou Coal Mining’s board of directors had authorized the buyback of up to 10 percent of the company's H-shares in fiscal years 2008 and 2009.

3SBio Inc. (SSRX), a leading China-based biotechnology company focused on researching, developing, manufacturing and marketing biopharmaceutical products, today announced that on June 25, 2010, the Company has filed with the United States Securities and Exchange Commission its Annual Report on Form 20-F for the year ended December 31, 2009 (the "2009 Annual Report"). Shares of 3SBio closed today at 12 off 0.08 losing 2.56%.

Big banks face curbs on the trading of the riskiest derivatives. Big banks will no longer be allowed to make high-risk bets with their own money, which is known as proprietary trading. As part of that rule no more than 3% of a bank’s core capital can be invested in hedge funds and private-equity firms. Some large banks may be forced to spin off some of their operations to comply with the rule.

After investors’ concerns about a too tight financial-overhaul bill were banished, most stocks in Wall Street soared. The China 100 stock index won 9.47 points or 1.12% to 851.36. The Panda China Large Cap Stock Index gained 13.16 points or 1.35% to 991.70. The Tiger China Small & Mid Cap Stock Index won 11.65 points or 1.41% to close at 840.34 and the Dragon China Undervalued Stock Index jumped only 0.18% to close at 720.98.

Sinovac Biotech Ltd. (SVA) announced a week ago it will hold its 2010 shareholder meeting at three concurrent sites on July 15 including: No 39 Shangdi Xi Road, Haidian District, Beijing, PRC and at No 6 Temple Street, St. John's, Antigua. That’s about half way round the world. Earlier this month SVA management said the Company received the confirmation from the China International Tendering Company that SVA was selected by the Beijing Centers for Diseases Control and Prevention [Beijing CDC] to supply the Company's hepatitis A vaccine, Healive, to the Beijing Expanded Program of Immunization [EPI]. Shares of Sinovac closed today at 4.98 to win 11.66% and lead the list of gainers.

HQ Sustainable Maritime Industries, Inc. (HQS) [5.50, 0.55, +11.11%] is a leading producer of functional, sustainable Tilapia biomass, including fish and personal healthcare products, HQ earlier this month announced that Lillian's Healthy Gourmet meals are available on Amazon.com. The Company currently offers six gourmet seafood meals, including Lillian's Healthy Gourmet Sweet Chili Citrus and Orange Miso Tilapia meals, as well as Lillian's Healthy Gourmet Gluten-Free Spicy Green Curry and Roasted Tomato Tilapia meals.

Lihua International, Inc. (LIWA) [9.12, 0.76, +9.09%] is a leading Chinese developer, designer, manufacturer, marketer and distributor of low cost, high quality alternatives to pure copper products, such as refined copper products and superfine and magnet wire, including copper clad aluminum wire, Lihua recently announced the completion of a new 32,000 square-foot warehouse located within its current plant in Danyang. The Company also announced that it is constructing a new 25,000-ton smelter at its existing copper recycling facility, which is expected to come on-line during the second half of 2010.

Advanced Battery Technologies, Inc. (ABAT) announced today the resignation of Mr. Yulin Hao as a member of the Board of Directors of the company and the election of Mr. Chi Quan Xue to serve as a member of the Board of Directors. Mr. Chi will also serve on the Audit Committee and as Chairman of the Nominating and Corporate Governance Committee. Advanced Battery Technologies closed today’s trading session at 3.57 per share with a gain of 5.93%.

Asia Cork Inc (AKRK) is a leading manufacturer of cork-based environmentally-friendly building materials for the Chinese and international building industry. Revenues of Asia Cork for the first quarter of 2010 increased 302% to approximately $3.6 million as compared to approximately $902,504 in the first quarter of 2009. The company reported net income of approximately $210,050 as compared to a loss of $113,541 a year earlier. Today Asia Cork’s shares closed at 0.27 with a loss of 12.90%.

AgFeed Industries, Inc. (FEED) [3.13, 0.07, +2.29%] one of the largest independent hog production and animal nutrient companies in China, today announced that it has set Wednesday, September 15, 2010 as the date of its 2010 Annual Meeting of Shareholders, and that the record date for determining shareholders entitled to vote at the Annual Meeting is July 27, 2010. The deadline for shareholders to timely submit to AgFeed proposals to be brought before the Annual Meeting pursuant to SEC Rule 14a-8 is July 19, 2010. The deadline for shareholders to timely submit to AgFeed proposals to be brought before the Annual Meeting (except for proposals pursuant to SEC Rule 14a-8) and to nominate candidates for AgFeed's Board of Directors is July 16, 2010.

Trina Solar Limited (TSL) [18.33, 0.72, +4.09] a leading integrated manufacturer of solar photovoltaic products from the production of ingots, wafers and cells to the assembly of photovoltaic modules, today announced that it is expected to supply PV modules to the University of Queensland [UQ] St Lucia campus in Brisbane, Australia, to be used for a 1.2 MW solar system which will be installed on the rooftops of four university buildings.

The large-scale installation will provide UQ with a significant source of clean green energy and is expected to be a resource for students and staff, who will study the array's performance and collaborate with Trina Solar as part of the University's drive to help develop next-generation solar technologies. Trina Solar also expects to work together with UQ on several cutting edge solar technology research projects going forward.

The China 100 stock index fell 14.74 points or 1.72% to 841.91. The Panda China Large Cap Stock Index lost 17.12 points or 1.72% to 978.53. The Tiger China Small & Mid Cap Stock Index slid 2.02% to close at 828.73 and the Dragon China Undervalued Stock Index fell 7.63 points or 1.05% to 719.68.

Investors are looking for stocks of health care as they consider they are more reliable in a weak economy, like today’s top gainer, Sinovac Biotech Ltd. (SVA) a biopharmaceutical company that engages in the research, development, manufacture, and commercialization of vaccines against the hepatitis A, hepatitis B, and influenza viruses in the People's Republic of China. Sinovac shares closed today at 4.46 to gain 0.21 points or 4.94%.

CDC Corp. (CHINA) wares and services were recently brought on board by Lakeside Foods, a manufacturer of private label canned and frozen produce at its distribution center in Manitowoc, Wis., with plans to potentially expand it to its other plants, as part of its strategy to mitigate rising raw material costs and attain lowest cost producer status. CDC Corp. is currently trading at 2.20 per share with a gain of 1.85%.

Telestone Technologies Corp. (TSTC) traded in a range yesterday that spanned from a low of 9.34 to a high of 10.34. Yesterday, its shares fell 3.39%, which took the trading range below the 3-day low of 9.88 on volume of 326,000 shares. Telestone Technologies closed today at 9.16 per share losing 5.57%. Shares of Telestone Technologies are currently trading below their 50-day moving average of 11.42 and below their 200-day moving average of 13.50.

Shares of GigaMedia Ltd. (GIGM) closed at 2.18 in the previous trading session and opened today at 2.16. GigaMedia settled the day down 0.12 to 2.04 in the trading session. The day's trading range is between 2.04 and 2.18 respectively. On the volume side, 110,573 shares were traded which is less than the average volume of 489,265 shares. GIGM is trading below the 50 day moving average and lower than the 200 day moving average. The stock's 52 week low is 2.00 and 52 week high is 6.02.

Chinese automaker Shaanxi Auto is cooperating with the CNOOC Gas and Power Group (CEO) [171.92, 4.27, -2.42%] on a liquified natural gas (LNG) heavy-duty truck business. Shaanxi Auto is responsible for developing LNG heavy-duty trucks for long-distance transportation companies, while CNOOC Gas and Power is expected to ensure LNG supply for the trucks by building LNG stations on their running routes. Both companies refused to comment on the cooperation, saying only that the LNG vehicle technologies are mature now and they hope to gain the first-mover advantage in the LNG vehicle market.

The CNOOC Group, the parent company of CNOOC Ltd. (CEO), has signed a deal with Yancheng city of Jiangsu province, east China, to invest 12 billion yuan in building an LNG terminal with receiving capacity of 3 million metric tonnes per year. The LNG project, which also includes a 328-km pipeline and a power plant installed with eight 300,000 kW units, has not yet found an LNG source and is waiting for government approval. The CNOOC originally had plans to erect an LNG terminal in Yancheng in 2004, but its search for an overseas source of LNG finding has not gone smoothly, with LNG price growing rapidly in recent years.

China Telecom Corporation Ltd. (CHA) [47.84, 1.27, -2.59%] one of the three major Chinese telecom carriers, is set to kick off massive 3G handset promotions for this summer before August 31 by joining hands with mobile phone makers, distributors, and retailers. To supply the promotions, China Telecom has ordered as many as 7 million 3G mobile phones under over 60 models from 17 mobile phone makers such as Nokia Corporation, LG, Huawei Technologies, Yulong Computer Telecommunication Scientific Co. Ltd., Beijing Tianyu Communication Equipment Co. Ltd., Hisense, and others.

PetroChina (PTR) [114.53, 1.78, -1.53%] will consolidate its natural gas business to develop the sector more strongly, Chairman Jiang Jiemin said. Asia's biggest oil company may consolidate the natural gas assets of three subsidiaries - Kunlun Energy, Kunlun Gas and Kunlun Natural Gas. Hong Kong-listed Kunlun Energy builds pipelines and sells natural gas. Kunlun Gas is the firm's platform for city natural gas business while Kunlun Natural Gas mainly deals in compressed natural gas and liquefied natural gas.

The Federal Reserve Chairman, Ben Bernanke, said two weeks ago that he expects the economy to grow at about a 3.5 percent for the rest of the year and for inflation to remain low. With most measures of inflation running well below 2 percent, the Federal Reserve continues to keep the money spigot open by holding short-term rates low in an effort to buoy the economy.

US stock indices closed with a slight loss as a result of the comments and actions taken by the Federal Reserve, The China 100 stock index dropped 2.79 points or 0.32% to 856.76. The Panda China Large Cap Stock Index won only 1.55 points or 0.16% to 995.60. The Tiger China Small & Mid Cap Stock Index lost 0.40 to close at 846.01 and the Dragon China Undervalued Stock Index closed with a loss of 6.32 points or 0.86% to close at 727.47.

China Housing and Land Development, Inc. (CHLN) [2.59, 0.11, +4.44%] recently reached agreements with major investors to retire approximately US$10 million of non-convertible portion of the US$20 million 5% Senior Secured Convertible Notes, which were issued to the investors in January 2008. The investors also agreed to exercise all their outstanding warrants associated with the 5% Senior Secured Convertible Notes. Upon completion of the transaction, the Company will retire up to US$10 million non-convertible portion of the notes through the issuance of approximately 1.73 million common shares at US$ 5.57 per share.

The share price of China Housing was US$ 2.31 per share on June 11, 2010. In connection with the 5% Senior Secured Convertible Notes financing in January 2008, investors were granted 1,437,467 five-year warrants with a strike price of US$ 6.07 per share. In accordance with the current agreements, the investors will exercise all of their remaining 1.2 million outstanding warrants, with every two warrants to be converted to one common share.

Perfect World Co., Ltd. (PWRD) [22.46, 1.30, -5.47%] chose E3 to announce that they were developing a brand new MMORPG based in Ancient China and Chinese martial arts: Swordsman Online. Perfect World Entertainment also announced that they were in the process of developing a brand new MMORPG set in Louis Cha's world famous "Swordsman" book series. This MMORPG, which currently goes under the working title of "Swordsman Online” will aim to bring Ancient China to life, complete with ancient Chinese martial arts and combat.

China TransInfo Technology Corp. (CTFO) [5.91, 0.29, -4.68%] announced yesterday it has outsourced its taxi media advertising business in Hohhot, the capital city of Inner Mongolia Autonomous Region, and Urumqi, the capital city of Xinjiang Urgur Autonomous Region, to a local advertising agency in exchange for negotiated commission payments. China TransInfo has the exclusive rights to operate the in-taxi GPS media platform in these two cities until the end of 2023.

China Advanced Con. Materials Gr. Inc (CADC) [4.03, 0.05, +1.26%] announced that China Rail has awarded the Company a new contract valued at $1.3 million to provide its ready-mix concrete [RMC] manufacturing services for a section of the Tianjin to Qinhuangdao high-speed railway in Hebei Province. The project, which is contracted by the Company's Manufacturing Services business segment, will require 150,000 cubic meters of its high-performance RMC and is expected to be fulfilled through the end of 2010 or early 2011.

China Advanced Materials also announced that it has closed the sale of an additional 300,000 shares of common stock at the recent public offering price of $4.60 per share for proceeds of $1,380,000, pursuant to the over-allotment option exercised by the underwriter in connection with the Company's public offering that closed on March 1, 2010. The exercise of the over-allotment option brings the total number of shares sold by China ACM in its registered public offering to 2,300,000 and the gross proceeds to $10.58 million.

The Company plans to use most of the offering proceeds to purchase 2 additional portable concrete mixing plants as a part of its growth strategy. In addition, the Company intends to use a portion of the proceeds for working capital and general corporate purposes. Roth Capital Partners, LLC acted as the sole manager for the offering.

CNOOC Ltd. (CEO) [176.19, 1.80, +1.03%] and Altona Energy plc, an Australia-based energy company, signed an agreement to form a joint venture [JV] for operations in the Arckaringa basin of South Australia. The JV will focus on the commercialization of the world class energy bank in the basin. As per the terms of the agreement, CNOOC will act as the operator with a 51% working interest and provide funds for the feasibility study for a coal mine and an integrated value-added project.

Nepal Telecom has announced to establish optical fiber connection with China by mid-July 2011. Officials at the state-owned telecom giant said they are currently holding negotiations with China Telecom (CHA) [49.11, 0.81, +1.68%] to establish optical fiber connection between the two telecom operators as per the Memorandum of Understanding signed two years ago. “We are currently holding negotiations to settle the issues of bandwidth and leasing period with China Telecom,” said NT’s Spokesperson Surendra Thike.

LDK Solar Co., Ltd. (LDK) [5.66, 0.04, -0.70%] a leading manufacturer of multicrystalline solar wafers and PV products announced today that it has signed a contract to supply solar modules to Spain-based Gestamp Asetym Solar, S.L., a subsidiary of Gestamp Corporation. Under terms of the agreement, LDK Solar will deliver 15.8 megawatts of solar modules to Gestamp Solar during the third quarter.

“In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance” said Lawrence Yun. Also, the National Association of Realtors is expecting sales to decline notably in June.

Major US stock indices dropped for a second day hurt by the NAR report, the China 100 stock index fell to 859.33 losing 16.50 points or 1.88 %. The Panda China Large Cap Stock Index dropped 21.04 points or 2.07% to 994.05. The Tiger China Small & Mid Cap Stock Index lost 2.05% to close at 849.40 and the Dragon China Undervalued Stock Index ends down to close at 732.92 losing 9.10 points or 1.23%.

Agria Corporation (GRO) [1.56, 0.08, +5.41%] recently announced it has entered into a memorandum of understanding with the lead plaintiff in the consolidated securities class action. The amount to be paid on behalf of all defendants to lead plaintiff for the benefit of the class in settlement of the class action is $3.75 million. Agria's insurance companies are expected to pay the settlement in its entirety, so there is expected to be no impact to Agria's financials from this settlement.

Tiens Biotech Group USA Inc. (TBV) [1.81, 0.06, +3.43%] announced today the separation of Manbo He from the company; Mr. He resigned from his positions as Chief Financial Officer and Director of the Company. Tiens Biotech said there were no disagreements with Mr. He on any matter relating to the Company's operations, policies or practices, which resulted in his resignation.

JA Solar Holdings Co., Ltd. (JASO) [4.75, 0.33, -6.50%] recently announced at Intersolar Europe that it has partnered with the Energy research Centre of the Netherlands [ECN] to introduce the metal wrap through [MWT] solar cell and module technology into production. Yingli Green Energy Holding Company Limited (YGE) [10.30, 0.20, -1.90%] a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, which holds the brand "Yingli Solar," today announced that its U.S. subsidiary, Yingli Green Energy Americas, Inc. has signed a strategic PV module supply agreement with DC Power Systems through the end of 2010.

This is one of the largest U.S. agreements for Yingli Green Energy Americas this year, and is also the largest contract between the companies to date.Yingli Green Energy Americas' solar panels have been sold to the residential market through DC Power and other solar distributors. According to the Solar Energy Industries Association, residential grid-tied PV installations are showing particularly strong growth, increasing by 100% in 2009 in the U.S.

China TransInfo Technology Corp., (CTFO) [6.20, 0.02, -0.32%] a provider of transportation systems for highway and urban transportation management in China, said it has outsourced its taxi media advertising business in Hohhot, the capital city of Inner Mongolia Autonomous Region, and Urumqi, the capital city of Xinjiang Urgur Autonomous Region, to a local advertising agency in exchange for negotiated commission payments. China TransInfo has the exclusive rights to operate the in-taxi GPS media platform in these two cities until the end of 2023.

China's 12th Five-Year Program [2011-2015] for guiding development of the petroleum and chemical industry in the five years will put emphasis on industrial structural adjustment to sharpen industrial competitive edge through encouraging development of high-end petrochemical products, according to Bai Yi, vice director of China Petroleum & Chemical (SNP). For this end, China plans to build several refining bases each with capacity exceeding 20 million tonnes per year and to boost average refining capacity and ethylene production capacity of Chinese refineries to six million tonnes per year and 600,000 tonnes per year, respectively.

China Petroleum & Chemical (SNP) [81.62, 1.06, -1.28%] traded in a range yesterday that spanned from a low of 82.22 to a high of 84.08. Yesterday, the shares gained 2.17%, which took the trading range above the 3-day high of 81.99 on volume of 315,000 shares. Shares of China Petroleum & Chemical are currently trading above their 50-day moving average of 79.21 and should find resistance at their 200-day moving average of 82.92.

The global stock markets rallied early on today’s trading session on the appreciation of the yuan, but as investors went into details the excitement soon faded. Investors realized that the gain in the yuan would boost the global economy gradually rather than in a short term, as a result major US stock indices dropped in a late-day again.

The China 100 stock index won 0.55% to 874.83. The Panda China Large Cap Stock Index gained 24.87 points or 2.51% to 1015.09. The Tiger China Small & Mid Cap Stock Index won 0.39% to close at 867.20 and the Dragon China Undervalued Stock Index lost 1.86% to close at 738.02.

Netease.com Inc. (NTES) shares closed at 33.33 with a gain of 2.98 points or 9.82% to be today’s top gainer. Netease.com operates an interactive online community in China, and provides Chinese language content and services through online games, Internet portal, and wireless value-added services [WVAS] businesses. Ctrip.com International Ltd. (CTRP) [45.80, 3.25, +7.64%] gapped up and gained almost 8% in more than double its average volume. Approximately 4.6 million shares have traded hands today vs. average 30-day volume of 2.2 million shares.

The9 Limited (NCTY) [4.07, 0.26, +6.82%] an online game developer and operator in China recently announced that Diego Armando Maradona, Argentine super soccer star, endorses The9's proprietary online game entitled "Winning Goal". Winning Goal is a competitive soccer game. The9 has launched the game in both web version and the SNS version for gamers around the world.

China Unicom [Hong Kong] Limited (CHU) [13.36, 0.80, +6.37%] a leading Chinese mobile carrier, swelled 1.023 million to 6.528 million in May 2010. From November 2009 to January 2010, the 3G-user growth of the company was faster compared to its 2G users, reaching 801,000; 920,000 and 853,000 respectively in the three months. Analysts believe that the 3G-user growth of China Unicom in May resulted from the company's adjustment of its operating strategy, namely, service packages, monthly subscription fees of wireless network access cards and charges for iPhone.

China Armco Metals, Inc. (CNAM) [3.88, 0.23, +6.30%] announced last Thursday that it entered into a Guaranty Cooperation Agreement with Henan Chaoyang Steel Co., Ltd., a related party, in order to provide additional liquidity to meet its anticipated capital requirements to fuel the expected growth of its recently launched scrap metal recycling facility and the expansion of its metal ore trading business in the coming years. Under the terms of this guaranty, Henan Chaoyang agreed to provide unlimited joint guarantees to its subsidiary, Armet (Lianyungang) Renewable Resources Co., Ltd., for up to five (5) years.

Yayi International (YYIN) [1.65, 0.25, -13.16%] last Thursday announced that it will report financial results for the transition period from November 1, 2009 to March 31, 2010 on June 29, 2010. The five-month transition report follows a change in the Company’s fiscal year end earlier. On March 26, 2010, Yayi International changed its fiscal year end from October 31 to March 31 to devote time and resources to operations during the peak season for sales in the fourth quarter of the calendar year and to focus on annual budgeting and audit preparations during the first quarter of the calendar year.

China Organic Agriculture (CNOA) [0.58, 0.04, -6.45%] announced a week ago that Counsel for the Company and counsel for the Plaintiff Class had entered into a Stipulation and Agreement of Settlement which has been submitted for approval by the Court. Under the terms of the settlement, eligible class members would receive a total of $300,000 in cash together with shares of its common stock having a value of $300,000 in exchange for a release of claims which class members have or may have against the Company, its directors, officers, affiliates, shareholders and agents, except claims arising out of or related to the settlement.

CDC Corp. (CHINA) [2.19, 0.12, -5.19%] recently announced that based on preliminary financial projections and estimates, the company expects second quarter 2010 application sales to be in the range of about $10.2 million to $10.9 million, an increase of approximately 33% to 42% compared to $7.7 million in the second quarter of 2009, primarily due to increased new logo sales for its on-premise solutions, and expanded cloud sales as a result of acquisitions, investments and organic growth.

In France, both President Nicolas Sarkozy and Finance Minister Christine Lagarde have indicated they support publishing results. But even there, the position looks a little vague. Spain's central bank, by contrast, is pressing ahead with publication of its stress tests and is suggesting it will extend this to smaller banks, including the country's embattled "caja" savings banks. Italy is saying it is firmly committed to publication.

The China 100 stock index rose 3.48 points or 0.40% on news about European banks stress tests going public. The Panda China Large Cap Stock Index gained 3.47 points or 0.35% to 990.19. The Tiger China Small & Mid Cap Stock Index fell 0.14% to close at 863.95 and the Dragon China Undervalued Stock Index won 1.06% to close at 758.29.

Synutra International Inc. (SYUT) [22.14, 1.08, +5.13%] shares are currently trading above the 50-day moving average of 22.01 and above the 200-day moving average of 16.66. China Direct Industries, Inc. (CDII) [1.28, 0.05, +4.07%] recently hosted the Gateway to China Business Roundtable Conference, an event designed to bring together a Chinese delegation, key international organizations and international business leaders to identify opportunities for inbound and outbound investments, partnerships, joint ventures and business opportunities between China, North America, and South America.

China Organic Agricultr (CNOA) [0.62, 0.02, +3.33%] announced last Monday that Counsel for the Company and counsel for the Plaintiff Class had entered into a Stipulation and Agreement of Settlement which has been submitted for approval by the Court. Under the terms of the settlement, eligible class members would receive a total of $300,000 in cash together with shares of its common stock having a value of $300,000 in exchange for a release of claims which class members have or may have against the Company, its directors, officers, affiliates, shareholders and agents, except claims arising out of or related to the settlement

Shares of GigaMedia Ltd. (GIGM) [2.20, 0.10, -4.35%] showed some extra weakness yesterday, trading down 2.1% to $2.29 while the broader market, as measured by the S&P 500 was up 0.13%. Approximately 246,000 shares traded hands yesterday vs. average 30-day volume of 585,000 shares. GigaMedia has fallen 26.6% since December 2009. American Lorain Corporation (ALN) [3.15, 0.13, -3.96%] an international processed snack foods and convenience foods manufacturer based in Shandong Province, China, last Monday secured a 15 million USD bank loan from a German development bank, Deutsche Investitions-und Entwicklungsgesellschaft MBH.

Yingli Green Energy Holding Co. Ltd. (YGE) a leading solar energy company in China, said it has no plans to produce thin-film solar cells in the near future considering the high costs. Xu Hongjian, deputy general manager of Yingli Energy Co., said that thin-film solar cell is uncompetitive if polycrystalline silicon prices stay low. Yingli Energy is a subsidiary company of Yingli Green Energy. Xu predicted that polycrystalline silicon prices would go further down with the release of more capacity.

CNOOC Limited (CEO) announced today that the Company has completed its acquisition of 24.5% participation interests in Block 15/34 from Devon Energy Corporation for a total consideration of 515 million USD. The transaction was signed on April 30, 2010. CNOOC has slashed the wholesale price of its #93 gasoline up to national emission control standard Guo-III to 7,460 yuan per metric ton [tone], which is about 100 yuan lower than the price offered by the other two oil majors, Sinopec and PetroChina. According to reports by the National Business Daily newspaper, CNOOC's unilateral action might trigger a systemic price reduction in the country due to the sluggish domestic demand and increasing competition in the market.

BlackBerry smartphones were made available to consumers in China for the first time on Friday, after Digital China Holdings Ltd. launched retail sales. The launch comes as China's mobile carriers compete to offer attractive smartphones to encourage users to upgrade and increase spending by using data services in addition to voice services and text messaging. Digital China will sell the smartphones without a mobile service contract, but the devices will be configured for China Mobile Ltd. (CHL), the world's biggest network operator by subscribers.

The China 100 stock index fell 5.48 points while major US stock indices closed with a narrow gain as investors saw how one of the most important indicators of the US economic health dropped, signaling a fading economic recovery. The Panda China Large Cap Stock Index lost 8.63 points or 0.87% to 986.95. The Tiger China Small & Mid Cap Stock Index fell 0.48% to close at 865.19 and the Dragon China Undervalued Stock Index dropped 0.67% to close at 747.33.

China Shandong Industries, Inc. (CSNH) is a producer and global marketer of straw-wicker products, wooden crafts and solid wooden furniture. Its products are sold by well known mass market retailers including Wal-Mart, ABM Group, Argos Limited, IKEA, Zara and others. China Shandong heads the list of today’s gainers closing at 2.75 per share to win 10%. 51job Inc. (JOBS) [22.53, 1.53, +7.29%] is currently above its 50-day moving average of $19.41 and above its 200-day moving average of $17.29

New Energy Systems Group (NEWN) [7.25, 0.35, +5.57%] a vertically integrated original design manufacturer and distributor of lithium and backup power systems, today announced the appointment of Mr. Elan Yaish, CPA as a new, independent member of the company's Board of Directors. Mr. Yaish will serve as the chairman of the Audit Committee. This new appointment increases the number of independent directors to three with the full board now comprised of a total of five members. As a result of this appointment, New Energy's board is now comprised of a majority of independent directors.

Yayi International (YYIN) [1.75, 0.20, -10.26%] the first mover and a leading producer and distributor of premium goat milk formula products for infants, toddlers, young children, and adults in the People’s Republic of China, today announced that it will report financial results for the transition period from November 1, 2009 to March 31, 2010 on June 29, 2010. China TransInfo Technology Corp. (CTFO) a leading provider of intelligent transportation systems for highway and urban transportation management in China, today announced the results of its 2010 Annual Shareholder Meeting held on June 11, 2010 in Beijing, China.

China Telecom (CHA), China's largest fixed-line telecom service provider by user number, will close its IMS [IP Multimedia Subsystem] trial operation soon and start the nationwide IMS procurement in July at the earliest, according to an insider of the carrier. China Telecom chose Jiangsu, Sichuan, Guangdong, Zhejiang and Fujian provinces and Shanghai municipality as the pilot regions of its IMS operation with differentiated focuses, such as the driving force of IMS service and evolution of network integration, which all achieved satisfactory results.

Fines and penalties will be excluded from the fund and paid separately. Payments from the fund will be made as they are adjudicated, whether by the Independent Claims Facility, or by a court, or as agreed by BP. The ICF will be administered by Ken Feinberg. The ICF will adjudicate on all Oil Pollution Act and tort claims excluding all federal and state claims.

The oil company also announced it has canceled a dividend payment totaling about 2.6 billion USD that was scheduled for June 21. It also won't declare a dividend for the second and third quarters. BP executives said the escrow fund and dividend suspension are providing the kind of clarity that debt and stock investors have lacked since the spill began on April 20.

Investors saw the BP’s fund as a partial solution as the oil is still leaking, as a result, major US stock indices closed flat today. The market began the day by falling on news that home construction and applications for building permits slumped in May following the end of a homebuyer tax credit. The US Commerce Department reported construction of homes and apartments fell 10 percent from a month earlier to an annual rate of 593,000, well below the 650,000 economists had forecast.

As Major US stock indices, The China 100 stock index closed almost flat today by losing 0.38% to 873.30. The Panda China Large Cap Stock Index gained 1.68 points or 0.17% to 995.58. The Tiger China Small & Mid Cap Stock Index fell 0.83% to close at 869.37 and the Dragon China Undervalued Stock Index lost 0.16% to close at 748.77.

3SBio (SSRX) [13.34, 1.36, +10.35%] is currently above its 50-day moving average of 11.81 and above its 200-day moving average of 11.88. Longtop Financial Technologies Limited (LFT) [35.32, 2.57, +7.85%] a leading financial services solution provider in China, and Netezza Corporation, the global leader in data warehouse, analytic and monitoring appliances, today announced a sales and marketing relationship in China. Longtop and Netezza will cooperate to offer Netezza's data warehouse appliance along with Longtop's innovative decision support solutions for banking, insurance and securities companies.

Universal Travel Group (UTA) [7.01, 0.71, -9.90%] a leading travel services provider in China, today announced the pricing of a public offering of 2,857,143 shares of its common stock at $7.00 per share. The offering is expected to close on Monday, June 21, 2010. In addition, Universal Travel Group has granted the underwriters a 30-day option to purchase up to an additional 428,572 shares of its common stock to cover over-allotments, if any.

"The current recovery is still fragile," said ZEW President Wolfgang Franz. Despite the ZEW economic sentiment numbers, European shares rose for a fifth straight session on Tuesday. In Wall Street investors were motivated by successful debt auctions in Spain, Belgium and Ireland, as a result major US stock indices had a good performance during the trading session.

The China 100 stock index gained 21.57 points or 2.52% at 877.89. The Panda China Large Cap Stock Index gained 29.33 points to 993.90. The Tiger China Small & Mid Cap Stock Index gained 2.71% at 876.68 and the Dragon China Undervalued Stock Index closed to 754.91 with a gain of 10.25 points or 1.38%.

RINO International Corporation (RINO) shares rose 10.35% to 14.34. The volume of RINO shares traded was 119% higher than normal. RINO’s quarterly earnings growth is 49.60% y/y. China Housing and Land Development, Inc. (CHLN) [2.72, 0.24, +9.68%] announced it will retire up to $10 million non convertible notes through the issuance of around 1.73 million common shares at 5.57 per share. The share price of China Housing was 2.31 per share on June 11.

JA Solar Holdings Co., Ltd. (JASO) [5.13, 0.44, +9.38%] and other clean energy stocks climbed higher in U.S. trading Tuesday as the euro strengthened and investors looked forward to an evening address by U.S. President Barack Obama, who may outline initiatives to boost the renewable energy sector. Obama is set to unveil a plan to reduce the reliance of the world's largest economy on fossil fuels and imported oil, after lawmakers accused BP Plc's cost-cutting culture of causing the worst oil spill in American history.

China INSOnline Corp. (CHIO) [0.37, 0.03, +8.82%] accepted today the resignation of Mr. Chunsheng Zhou as a director and a member of the Company's Audit Committee, Compensation Committee and the Nominating Committee. China INSOnline also accepted the resignation of Mr. Yun Hon Man as the Chief Operating Officer of the Company. There are no related party transactions between any of these directors and the Company.

Asia Cork Inc (AKRK) leads today’s list of losers by closing the trading session in the red to 0.29 per share losing 0.06 points or 15.94%. China Mass Media Corp. (CMM) lost 15.38% at 1.87 per share. China Architectural Engineering, Inc. (CAEI) closed today with a loss of 4.44% at 0.86 per share.

A wholly owned US subsidiary of Perfect World Co., Ltd. (PWRD), today unveiled at the Electronic Entertainment Expo (E3) an all new MMORPG under the working title, Swordsman Online. With a huge following and made into countless movies and TV shows, Perfect World Entertainment aims to bring Louis Cha’s popular martial arts novel to a whole new audience. The Swordsman Online teaser trailer will be shown at Perfect World Entertainment’s E3 booth.

Suntech Power Holdings Co.(STP) the world’s largest maker of polysilicon solar-power modules, said U.S. sales are increasing as lower prices make panels more attractive to utilities and residential customers. Suntech expects U.S. sales of 200 megawatts to 250 megawatts this year, compared with 65 megawatts last year, Chief Strategy Officer Steven Chan said today in an interview in Hollywood, Florida. The U.S., which accounts for about 10 percent of the Wuxi, China-based company’s sales, will be its biggest market in four or five years, Chan said.

While major US stock indices dropped, the China 100 stock index managed to win 1.09% to close at 856.98. The Panda China Large Cap Stock Index gained 2.68 points to 964.57. The Tiger China Small & Mid Cap Stock Index gained 1.12% climbing back to 852.10 and the Dragon China Undervalued Stock Index closed at 750.15 with a gain of 16.04 points or 2.18%.

Asia Cork Inc (AKRK) a leading manufacturer of cork-based environmentally-friendly builds materials for the Chinese and international building industry closed today with a gain of 25% to 0.35 per share. Shares of China Architectural Engineering, Inc. (CAEI) closed the trading session at 0.90 gaining 9.76%.

China Mass Media Corp. (CMM) [2.21, 0.18, +8.87%] a leading media company in China today announced its unaudited financial results for the first quarter ended March 31, 2010. "Our performance in the first quarter of 2010 declined on a year-over-year basis, primarily because we were not the exclusive advertising agent for CCTV's 2010 Chinese New Year Gala program," commented Mr. Shengcheng Wang, Chairman and Chief Executive Officer of China Mass Media.

China Marine Food Group Limited (CMFO) [4.65, 0.82, -14.99%] is a manufacturer of Mingxiang seafood-based snack foods, "Hi-Power" marine algae-based beverages and a distributor of frozen marine catch. China Marine today provided an update on the distribution and sales of Hi-Power marine algae-based beverages, for the first three months of 2010 ended March 30 2010, China Marine reported $2.8 million in sales of Hi-Power beverages and has forecast $20.0 million for the full year 2010.

Xinyuan Real Estate Co., Ltd. (XIN) [2.62, 0.19, -6.76%] a residential real estate developer with a focus on high growth, strategic Tier II cities in China, announced last Friday that it has been advised that the three selling shareholders named in the preliminary prospectus supplement filed by the Company with the SEC on June 4, 2010, Blue Ridge China Partners, L.P., EI Fund II China, LLC and Ms. Yuyan Yang, have terminated their best efforts offering of up to 9,500,000 American Depositary Shares.

American Lorain Corporation (ALN) an international processed snack foods and convenience foods manufacturer based in Shandong Province, China, today announced that it secured a $15 million bank loan from a German development bank, Deutsche Investitions-und Entwicklungsgesellschaft MBH. "To support our growth in 2010 and beyond, we took a two-prong approach to accessing capital," began Chen Si, Chairman and CEO of American Lorain. "We have deemed that our S3 shelf registration is an appropriate tool for us to use American Lorain shares to access growth capital in the coming years, however considering the current conditions of equity markets, it is not prudent to proceed with an equity raise at this time”.

“Debt is the optimal source of capital at this time and in particular during downturns in equity markets. We are pleased to secure this long-term $15 million loan with a well-known and respected international bank. Our primary product, chestnuts, is enjoying a growth cycle both domestically and in international markets where demand across this product line, including our new frozen chestnuts promotion, has increased significantly."

Today, the China 100 stock index closed the trading session with a gain of 11.99 points or 1.43% to 848.97. The Panda China Large Cap Stock Index gained 11.20 points to 961.89. The Tiger China Small & Mid Cap Stock Index closed to 842.67 gaining 1.55% and the Dragon China Undervalued Stock Index gained 11.19 points or 1.54% to 739.12.

Shares of Perfect World Co., Ltd. (PWRD) closed today’s session at 25.63. Perfect World announced today that Jade Dynasty, the English-based version of Zhu Xian, one of China's most popular Free-To-Play games, will be celebrating its one year anniversary on June 16th. China Agritech Inc. (CAGC) [12.06, 1.07, +9.74%] has noticed strong interest in its liquid fertilizers, which was reinforced by its recent 9 million contract award by Sinochem for the sale of its “Green Vitality” fertilizers.

Tianyin Pharmaceutical Co., Inc. (TPI) [3.06, 0.22, +7.75%] currently manufactures and markets a comprehensive portfolio of 52 products, of which 23 are listed in the highly selective National Medicine Catalog of the National Medical Insurance program, 7 are included in the essential drug list of China. Tianyin achieved 10 new drug approvals at SFDA in 2009 and has a pipeline of 12 products pending regulatory approval that target various indications with considerable market potential.

Today’s biggest loser is China-Biotics, Inc. (CHBT) [14.08, 1.40, -9.04%] which makes probiotic products in China, announced Friday that its fourth-quarter earnings fell by 56 percent as one-time charges weighed down results. For the three-month period that ended on March 31, the company had net income of 2.9 million, or 13 cents per share. That is down from the previous net income of 6.6 million, or 39 cents per share.

China Pharma Holdings, Inc. (CPHI) closed in the red to 2.54 per share losing 4.15%, China 3C Group (CHCG) dropped to 0.33 per share with a loss of 2.94%. AirMedia Group Inc. (AMCN) has a potential upside of 71.9% based on a current price of 3.91 and an average consensus analyst price target of 6.86.

Chinese meat and food processing company Zhongpin Inc. (HOGS) announced Friday it will build a new processing plant and distribution center in the Jiangsu province city of Jiangyan. The company said it will invest about 63 million the 220-acre plant. Construction is slated to begin in August.

The company expects the first phase, which will focus on cold-storage for pork, to be completed in the third quarter of next year. A second phase for production of prepared pork products is slated to be completed in the first quarter of 2012.

Zhongpin said the processing plant will be its first entry into the eastern China market. Management expects it will help save on its delivery costs, quicken its response to the market and help boost sales.

Zhongpin has been expanding rapidly and late last year it made a public offering of 4 million shares to help fund more growth. The company reported last month that its net income rose 37 percent during the first quarter on strong sales. Shares in Zhongpin rose 27 cents, or 2.4 percent, to 11.49.

European stock markets were also boosted by the Asian figures added to the European Central Bank and Germany’s constitutional court news. The ECB said it would provide unlimited liquidity to banks until the end of this year and press on with its policy of buying euro government bonds since euro zone credit markets were still not functioning properly. The highest German court rejected a lawmaker's plea to block the 440 billion euro [529.7 billion dollar] European Financial Stability Facility created by the 16 euro zone governments to lend money in emergency to states shut out of credit markets.

Britain's FTSE 100 closed 0.9 percent higher at 5,132.50. Germany's DAX added 1.2 percent to 6,056.59, and France's CAC-40 was up 2.0 percent to 3,516.64. In Madrid the gain was of 3.72 percent, 2.53 percent in Milan, 1.49 percent in Amsterdam and 0.91 percent on the Swiss Market Index.

Following the global stock markets sentiment and helped by the apparently good news about the number of laid-off workers finding a job, reported by the US Labor Department, The China 100 stock index jumped 4.11% to 832.23. The Panda China Large Cap Stock Index gained 35.80 points to 950.69. The Tiger China Small & Mid Cap Stock Index closed won 4.87% to 829.82 the Dragon China Undervalued Stock Index gained 19.66 points to 732.92.

Synutra International Inc. (SYUT) [24.31, 6.03, +32.99%] is the best stock performer today, its sales rose 13.3% and net income was $9.1 million. A-Power Energy Generation Systems, Ltd. (APWR) [9.13, 1.76, +23.88%] reported today that its first-quarter net income soared on one-time gains stemming from its acquisition of a Japanese solar company and the value of outstanding warrants.

Yingli Green Energy Holding Co. Ltd. (YGE) [9.81, 1.00, +11.35%] a leading solar energy company and one of the world's largest vertically integrated photovoltaic manufacturers, today announced the opening of its carbon-neutral Commercial Display, an area where only partners and sponsors of the 2010 FIFA World Cup can showcase and educate fans and public about their products and brands. The display will be installed at the Soccer City Stadium in Johannesburg, South Africa.

China INSOnline Corp. (CHIO) closed today with a loss of 2.94% to 0.33 per share to lead the losers list. China Biologic Products, Inc. (CBPO) a leading plasma-based biopharmaceutical company in China lost today 2.83% at 11. China Organic Agriculture (CNOA) [0.52, 0.02, -2.80%] today announced the election effective June 9, 2010 of Mr. Kyle Jiang as its new Chairman, and Mr. Qian Qi as its new Chief Executive Officer. Mr. Jiang and Mr. Qi replace Mr. Jingsong Li, who is no longer with China Organic Agriculture, as Chairman and Chief Executive Officer.

GigaMedia Ltd. (GIGM) [2.25, 0.04, -1.75%] announced plans to co-develop and jointly publish a massively multiplayer online game based on animated TV series SpongeBob SquarePants. MTV Networks Asia points out that this is the first MMO based on the extremely popular and heavily merchandised Nickelodeon property. The SpongeBob SquarePants creative team at Nickelodeon Animation Studios intends to work with GigaMedia to develop the game's environments and avatars.

The9 Limited (NCTY) [3.87, 0.05, -1.28%] has just launched its first social game, Winning Goal, a unique soccer game with great features allowing the player to create his own team of star players, play in leagues, and even bet on the World Cup. The9 Limited has also invited Diego Maradona, the soccer superstar and head coach of Argentina's national team for the 2010 World Cup, to act as the official endorser of the game.

Despite Chinese export figures The China 100 stock index only gained 0.55% today, clearly affected by the general sentiment in Wall Street. The Panda China Large Cap Stock Index gained 2.38 points to 914.20. The Tiger China Small & Mid Cap Stock Index closed at 0.68% at 791.28 and after four sessions reporting losses, the Dragon China Undervalued Stock Index gained 4.86 points to close at 717.65.

SinoHub, Inc. (SIHI) a rapidly growing electronics company in the People's Republic of China today gained 7.28% to close at 2.80 per share. China Shenghuo Pharma (KUN) is back in the gainers list after being yesterday’s biggest loser, today closed with a gain of 6.15% at 0.69 per share.

China 3C Group (CHCG) closed today at 0.34 per share gaining 5.92% to be also back in the gainers list after a poor performance yesterday. The last in the top 5 gainers list is Yayi International (YYIN) trading at 1.75 per share at the end of the session. Yayi International recently appointed Bao Zhou as the new marketing director of the company.

Today’s worst stock performer is Asia Cork Inc (AKRK) losing 17.65% followed by NF Energy Saving Corp (NFEC) closed with a loss of 5.28%. Next loser The9 Limited (NCTY) [3.92, 0.18, -4.39%] is currently below its 50-day moving average of $5.95 and below its 200-day moving average of $7.15.

China's top Internet search company Baidu, Inc. (BIDU) [67.40, 3.09, -4.38%] aims to raise its share of China's PC and mobile search market to 79 percent next year, a senior executive said on Tuesday, helped by a Google retreat. Baidu is currently above its 50-day moving average of $67.30 and above its 200-day moving average of $49.33. Tiens Biotech Group USA Inc. (TBV) a producer of nutrition supplement products closed in the red at 1.76 per share.

China Direct Industries (CDII) announced today it will be hosting the Gateway to China Business Roundtable Conference, an event designed to bring together a Chinese delegation, key international organizations and international business leaders to identify opportunities for inbound and outbound investments, partnerships, joint ventures and business opportunities between China, North America, and South America.

Bernanke also said European leaders were taking the right steps to control rising deficits. The euro rose to $1.1986 from near $1.1900 earlier. The euro has become a measure of confidence in Europe's ability to rein its debt.

Almost unaffected by the US events as well as the European crisis, The China 100 stock index closed nearly even 803.09 gaining only 0.32 %. The Panda China Large Cap Stock Index gained 8.44 points to move to 912.51. The Tiger China Small & Mid Cap Stock Index shed 0.14 points to 785.95 and the Dragon China Undervalued Stock Index gained 1.36 points to 717.84.

Investors have turned to China America Holdings, Inc. (CAAH) [0.02, 0.00, +25%] for third time since last Friday; China America Holdings is a U.S. based company within the Dragon China Undervalued Stock Index; establishing presence in China it distributes hydrofluorocarbon refrigerants utilized in a variety of applications, primarily as coolants in automobiles.

China Biologic Products, Inc. (CBPO) [11.01, 0.57, +5.51%] a leading plasma-based biopharmaceutical company in China, today announced that it will present at the Jeffries 2010 Global Life Sciences Conference. The Global Life Sciences Conference is being held June 8 - 11, 2010, at the Grand Hyatt in New York City.

A-Power Energy Generation Systems, Ltd. (APWR) [7.23, 0.35, +5.09%] through its subsidiaries, provides onsite distributed power generation systems and micro power grids for industrial companies primarily in the People’s Republic of China. It designs, constructs, installs, and tests distributed power generation and micro power grids as stand-alone facilities for various customers in the steel, chemical, ethanol, cement, and food industries.

Universal Travel Group (UTA) [7.58, 0.35, +4.84%] recently announced that the Company's Chairwoman and CEO, Ms. Jiangping Jiang, was elected as a committee member in Shenzhen's fifth annual Chinese People's Political Consultative Conference as a representative from the circle of The All-China Women's Federation. American Lorain Corporation (ALN) [2.62, 0.12, +4.80%] is an integrated food manufacturing company, engages in the development, manufacture, and sale of various food products in China and internationally.

China Shenghuo Pharma (KUN) lost $0.05 or 7.14% falling to 0.65 per share. It moves today from yesterday’s gainers list to the top of the losers list. China Direct Industries, Inc. (CDII) [1.14, 0.08, -6.56%] engages in the production and distribution of magnesium, and distributes basic materials in the People’s Republic of China.

China Housing and Land Development, Inc. (CHLN) is for second time this week on the top losers list by losing 6.36% to 2.06 per share. China 3C Group (CHCG) after closing in the top gainers list yesterday today closed the trading session in the red losing 5.88% at 0.32 per share.

Xinyuan Real Estate Company Ltd. (XIN) [2.60, 0.13, -4.76%] a residential real estate developer with a focus on high growth, today announced that the Company did not bid at the June 8, 2010 auction for the 55% of the shares of Jiantou Xinyuan that it does not already own. As a result the stock fell almost 5% catching investors by surprise.

This week will be dominated by the European Central Bank's June meeting on Thursday. Analysts expect the bank to keep its monetary policy unchanged but will watch President Jean-Claude Trichet's press conference for views on the debt crisis, details on the bank's plan to buy bonds to help countries like Greece, and the outlook for growth and inflation.

The China 100 stock index was also battered by the global market slides as it started the week down 28.89 points. The Panda China Large Cap Stock Index shares closed down 24.31 points or 2.62% to 904.07. The Tiger China Small & Mid Cap Stock Index finished the session losing 4.77% at 786.11 and the Dragon China Undervalued Stock Index tumbled 1.88% to 720.48.

China America Holdings, Inc. (CAAH) keeps going up while most stocks are sinking. Today closed with a gain of 33.33%. Again, with an adverse scenario China America Holdings finished the trading session at the top of the gainers list for a second day in a row.

China Shenghuo Pharma (KUN) [0.70, 0.03, +4.48%] is a pharmaceutical company that focuses on the research, development, manufacture and marketing of Sanchi-based medicinal and pharmaceutical, nutritional supplement and cosmetic products. NF Energy Saving Corp (NFEC) a Chinese leader in energy efficient flow control systems today closed with a gain of 4% to 2.60 per share.

China 3C Group (CHCG) [0.34, 0.01, +4%] is a leading wholesale distributor and retailer of computers, communication products and consumer electronics. Yayi International (YYIN) that recently appointed Bao Zhou as the new marketing director of the company closed green today to 1.70 per share.

Today’s top loser China Biologic Products, Inc. (CBPO) [10.44, 2.34, -18.31%] is a biopharmaceutical company, engages in the research, development, production, and manufacture of plasma-based pharmaceutical products in the People's Republic of China.

China TransInfo Technology Corp. (CTFO) [5.05, 0.70, -12.17%] is currently below its 50-day moving average of $6.82 and below its 200-day moving average of $7.95. American Lorain Corporation (ALN) [2.50, 0.30, -10.71%] is the largest chestnut products producer in China; it recently signed a contract to sell products in 550 7-Eleven stores in Guangdong province.

RINO International Corporation (RINO) [11.18, 1.34, -10.70%] operates as an environmental protection and remediation company in the People's Republic of China. China Housing and Land Development, Inc. (CHLN) [2.20, 0.23, -9.47%] engages in the acquisition, development, management, and sale of commercial and residential real estate properties primarily in the western part of China. Its residential projects include multiple high-rise, middle-rise, and low-rise buildings, as well as a community center, commercial units, kindergarten, and other auxiliary facilities.

Investors expected 511,000 new jobs against the 431,000 reported by the Labor Department. Although, most of the jobs created were temporary at the government (census takers) which made the increase less encouraging. Investors couldn’t find support for a renewed recovering finance situation in Europe. Hungary's prime minister raised the prospect of a debt default, helping the euro tumble under 1.20 dollars for the first time in four years.

With Europe’s debt troubles hurting demands for exports from China and cautious investors in the US stock market, the China 100 stock index dropped 28.52 points or 3.06% to 831.70 reporting only 4 stocks with a gain. The Panda China Large Cap Stock Index shares closed down 29.61 points or 3.09% to 928.38. The Tiger China Small & Mid Cap Stock Index finished the session losing 3.84% at 825.46 and the Dragon China Undervalued Stock Index tumbled 2.47% to 739.26.

Today, with a most adverse scenario, China America Holdings, Inc. (CAAH) [0.02, 0.01, +33.33%] is the top gainer, compared to Wednesday when the scenario was more favorable it was the biggest loser, a well defined reflection of the advances and declines in the market.

Mindray Medical International Limited (MR) [29.45, 0.73, +29.45%] is trading below its 50 day moving average and lower than the 200 day moving average. The stock's 52 week low is $22.65 and 52 week high is $40.35. The stock has a P/E ratio of 22.33 and a dividend yield of 0.68%.

China Architectural Engineering, Inc. (CAEI) reported a net loss of $3.5 million or per share loss of 6 cents for its fiscal first quarter ended March 31 today closing the session with $0.81 per share. Giant Interactive Group, Inc. (GA) [7.23, 0.03, +0.42%] is a company that focuses on massively multiplayer online [MMO] games that are played through networked game servers in which thousands of players are able to simultaneously connect and interact.

Asia Cork Inc (AKRK) today closed flat to 0.35 per share, its CEO Pengcheng Chen recently said, “We saw a strong rebound in our operations in the first quarter compared with the first quarter of 2009. We increased our sales of major finished goods including wood materials, floors and boards. In addition, we sold secondary raw materials amounting to $1.18 million”.

Synutra International Inc. (SYUT) today’s worst stock performer closed in the red 18.56% losing 2.04 points or 9.99%. Its shares are currently trading below its 50-day moving average of $22.24 and should find support at the 200-day moving average of $16.30.

Agria Corporation (GRO) [1.50, 0.13, -7.98%] engages in the research and development, production, and sale of upstream agricultural products in the People’s Republic of China. China INSOnline Corp. (CHIO) [0.36, 0.03, -7.69%] provides a network portal through its website soobao.cn to insurance companies, agents, and consumers for advertising, online inquiry, news circulation, online transactions, statistic analysis, and software development.

China Automotive Systems Inc. (CAAS) closed in the red at 17.61 per share; it is currently below its 50-day moving average of $20.96 and should find support at its 200-day moving average of $16.78. China Agritech Inc. (CAGC) is again in the top losers list this week by closing the trading session losing 6.95% at 11.52 per share.

The robust economic data had also an effect on the China 100 stock index, jumping 3.12 points, or 0.36%, to finish at 861.44 today. The Panda China Large Cap Stock Index gained 0.54%. The Tiger China Small & Mid Cap Stock Index gained 0.68% to 858.46. Not so the Dragon China Undervalued Stock Index that tumbled 0.54%.

After two days in the top 5 losers list, Yayi International (YYIN) heads the list of today’s gainers, it won 9.68% to close at 1.70 per share. Yayi, The leader of premium goat milk formula products for infants, toddlers, young children, and adults in China, today announced the expansion of its executive team with the addition of Mr. Bao Zhou as Marketing Director.

Solarfun Power Holdings Co. Ltd. (SOLF) [7.50, 0.53, +7.60%] announced today that it will launch its new "SolarIris" line of building integrated photovoltaic ["BIPV"] modules at the International Solar ["Intersolar"] Europe Conference in Germany, from June 7 to 11, 2010. With more than 1,800 exhibitors and 60,000 visitors expected, Intersolar is one of the biggest solar-related trade shows in the world.

New Oriental Edu & Tech ADR (EDU) [95.44, 5.48, +6.09%] runs 270 schools in China, as well as online courses. It offers English and other foreign language courses, as well as other training. Its earnings growth dipped into negative territory late last year. But it bounced back last quarter, climbing 26%. Its sales growth has been more solid, ranging from 24% to 36% during the past three quarters.

RINO International Corporation (RINO) a Chinese wastewater treatment specialist that has recently announced plans for a huge plant expansion to handle anticipated continuing growth today is between the top 5 gainers list closing at 13.23 per share. Sohu.com Inc. (SOHU) an Internet company that provides news, information, video content, entertainment, and communication services in the People’s Republic of China also closed green today at 46.10 per share.

China 3C Group (CHCG) is the biggest loser today after performing poorly during May, today lost 8.33% to close at 0.33. Shares of Tongxin International, Ltd. (TXIC) are currently trading below their 50-day moving average of 6.96 and below their 200-day moving average of 8.37, today closed in the red at 4.55.

NF Energy Saving Corp (NFEC) is a China-based provider of integrated energy conservation solutions utilizing energy-saving equipment, today closed red at 2.68. China Organic Agriculture (CNOA) a distributor of agricultural products in China, including green rice, organic rice, soy beans, rice wine and other agricultural products also closed red today at 0.59.

Suntech Power Holdings (STP) a producer of solar power panels, announced on Thursday its first-quarter net income rose sharply, and raised its forecast for 2010 shipments by 4%, but the company's results were hurt by a decline in the value of the euro and an analyst said that would continue. Its share price fell 3.91% in today´s trading.

A good day for the three indices that form the China 100 stock index. With a notable improvement of a slew of their stocks the three categories closed green the second day of June. Together reported a gain of 1.65% for the China 100 stock index. The Panda China Large Cap Stock Index gained 2.31%. The Tiger China Small & Mid Cap Stock Index gained 1.87% to 852.66 and the same way the Dragon China Undervalued Stock Index gained 0.65% to 766.54.

Leading the list of the stocks that closed green today is Asia Cork Inc (AKRK) [0.36, 0.03, +9.09] a manufacturer of cork-based environmentally-friendly building materials for the Chinese and international building industry. The company announced revenues for the first quarter of 2010 increased 302% to approximately 3.6 million as compared to approximately 902,504 in the first quarter of 2009. The company reported net income of approximately 210,050 as compared to a loss of (113,541) a year earlier.

ReneSola Ltd. (SOL) a company rated between the top ten best solar stocks gained today 7.85% to be the second stock with best performance today in the China 100 stock Index. Closing green in the third position is China Sky One Medical, Inc. (CSKI) [12.89, 0.90, +7.51] a leading fully integrated pharmaceutical company in China, today announced that its wholly owned subsidiaries have been recognized as Heilongjiang's Model Companies by the Heilongjiang Provincial Government.

China Pharma Holdings, Inc. (CPHI) one of the top losers yesterday, improved its performance today to be positioned between the top gainers closing at 2.92. AirMedia Group Inc. (AMCN) reported 165.5 million in sales over the past 12 months and is expected to report 289.2 million in sales in the next fiscal year, today closed at the bottom of the top 5 gainers with 6.49% gained.

China America Holdings, Inc. (CAAH) a distributor of hydrofluorocarbon, closed red losing 16.67% to 0.02 leading the top losers list today. Yuhe International, Inc. (YUII) announced in a regulatory filing that the company may offer up to 40 million of common stock from time to time in one or more offerings and that any net proceeds will be used for capital expenditures, possible future acquisitions, and general corporate and working capital purposes, today its shares closed red at 8.57.

China Mass Media Corp. (CMM) an independent television advertising company in the People´s Republic of China closed today losing 4.35%. China Kangtai Cactus Bio (CKGT) announced today that revenue for the first quarter ended March 31, 2010 increased 66% to 5.5 million from 3.3 million in the first quarter of 2009. Adjusted net income was up 20.5% to 836,723 or 0.04 per share, closing today red at 1.56.

Repeating in the list of top losers from yesterday is Yayi International (YYIN) that closed today at 1.55. Yayi International is the first mover and a leading producer and distributor of premium goat milk formula products for infants, toddlers, young children and adults in China.

Today’s top gainer, China INSOnline Corp. (CHIO) today closed at 0.40. The company announced today that it received a notification from Nasdaq, stating that the company has regained compliance with Listing Rules. The company was not in compliance due to the fact that it did not file Form 10-Q for the period ended March 31, 2010 promptly on May 24, 2010. On May 27, the company filed its Form 10-Q for the period ended March 31, 2010.

China BAK Battery, Inc. (CBAK) share price closed green on 2.06. The average volume stands around 769,000 shares per day. The company’s total outstanding shares accumulate up to 63.61 million shares out of which 44.08 million shares are floated in the market. Insiders hold almost 29.55% of total outstanding common stock whereas 19.30% is held by different institutions.

Melco Crown Entertainment Ltd. (MPEL) [4.43 0.14 +3.26%] a developer and owner of casino gaming and entertainment resort facilities focused on the Macau market, today announced that City of Dreams will launch the world's largest water-based show 'The House of Dancing Water' with a grand opening on September 16, 2010.

Shanda Interactive Entertainment Ltd. (SNDA) [41.96 0.95 +2.32%] a Chinese provider of online games, announced today that it's buying the recorded music and certain wireless services of Hurray! Holding Co. Ltd. for about $37 million in cash. In the same deal, Hurray, which provides ring tones and other services for mobile phones, will exchange 415.4 million of its newly issued ordinary shares for Shanda's online audio business. Excluding the cash balances at the businesses being acquired by Shanda, Hurray will net about $11 million. The deal is expected to be completed in the third quarter.

China Advanced Construction Materials Group, Inc. (CADC) a leading provider of eco-friendly ready-mix concrete in China closed the day with a gain of 1.30% at 3.89. The company announced on May 20th. that it retained Financial Profiles, Inc. to direct a comprehensive investor relations program.

Yayi International (YYIN) that recently added 1,080 retail outlets in China started the month heading the list of top losers with a loss of 14.44%. ReneSola Ltd. (SOL), in approximately 2 weeks has returned 4.7% as of today's recent price of 5.48. Renesola is currently below its 50-day moving average of 6.34 and should find support at its 200-day moving average of 5.26.

China Agritech Inc. (CAGC) that signed a renewal contract with Sinochem on May 18th. for the sale of the company's "Green Vitality" organic liquid fertilizers closed today with a loss of 8.77%. China Pharma Holdings, Inc. (CPHI) a leading fully-integrated specialty pharmaceuticals company in China closed red today at 2.73.

Telestone Technologies Corp. (TSTC) [9.30 0.88 -8.64%] a leading developer and provider of telecommunications local access network solutions based in China, today announced the appointment of Mr. Guobin Pan as President of Telestone. Mr. Pan assumed the role of President of Telestone on May 26 and will manage the Company's operations while driving implementation of the strategy to expand Telestone's fast-growing carrier centric business.

Among the best performing sectors in the Chinese stock market was the Chinese solar market. Fully six different solar sector companies, including one of today's top gainers Solarfun Power Holdings (SOLF), beat their first quarterly earnings estimates. All Chinese solar markets were once again profitable or stayed profitable for the first three months of 2010. Not only is their financial performance strong, but their production, demand, and company profit margins are also soaring. As today's top gainer example of this rising trend, Solarfun Power reported shipments of solar systems increased to 150.6 MW from 110.8 MW in the previous quarter or from 35.7 MW a year earlier. Currently the company is expecting 160-170 MW of deliveries in the next three months. What is and has been holding back the price increases of these solar stocks lies in two elements: the price of oil, and the Euro/US Dollar rate of exchange.

Shares of Asia Cork Inc (AKRK) gained more than 16% in the Wednesday trading session to close at .42. The company reported revenues up 14% to $24.4M and net income up 22% to $3.3M with diluted EPS of $0.09. Asia Cork is in about the middle of its fifty-two week range of 0.16 - 1.01.

China 3C Group (CHCG) gained more than 16% in the Wednesday trading session to close at .36. The company reported revenues up more than 14% and net income up over 260%. China 3C Group is just off of the bottom of its fifty-two week range of 0.30 - 1.26.

Shares of Solarfun Power Holdings Co. Ltd. (SOLF) gained more than 13% in the Wednesday trading session to close at 7.04. The company led the Chinese solar industry higher on Wednesday after the firm more than doubled the EPS consensus and guided higher for the full year. At a close of $7.10, Solarfun Power Holdings is in the middle of its fifty-two week range of 4.48 - 10.78.

Shares of China Shandong Industries, Inc. (CSNH) gained more than 10% in the Wednesday trading session to close at 2.70. China Vesting added China Shandong Industries to the China Dragon Undervalued Index. At a close of $2.70, China Shandong is towards the top of its fifty-two week range of .07 – 3.29.

Shares of China INSOnline Corp. (CHIO) rose more than 9% in Wednesday's session up to $0.46. The online insurance provider services the Beijing area. The share prices are attempting to build on last month’s analyst report that claimed it has great profit margins and high returns on equity. The stock sits at nearly the bottom of its present fifty-two week range of 0.40 - 2.17.

Shares of Sinovac Biotech Ltd. (SVA) dropped by more than 4% in the Wednesday session. The Chinese vaccine maker Sinovac Biotech Ltd. tumbled Friday on lagging sales of the company's hepatitis A and B vaccines. With a close of 3.88, it sits just off of the bottom of its fifty-two week range of 2.40 - 12.50.

Shares of China China-Biotics, Inc. (CHBT) dropped by more than 4% in Wednesday trading. A maker and distributor of probiotics products in China, its products are used as dietary supplements to help the digestive system, blood pressure, and the immune system, to name just a few. With a close of 13.93, it is in about the middle of its fifty-two week range of 9.25 - 19.74.

Top gainers in the China stock market included Acorn International, Inc. (ATV), up .16 points or plus 4.53%; China Shenghuo Pharma (KUN), up .03 points or plus 4.29%; NF Energy Saving Corp (NFEC), up .10 points or plus 3.45%; SinoHub, Inc. (SIHI), up .09 points or plus 3.44%; and Yuhe International, Inc. (YUII), up .23 points or plus 2.83%. The top losers in the market included China America Holdings, Inc. (CAAH) , down minus 13.04%; China INSOnline Corp. (CHIO), down .05 points or minus 10.64%; Yayi International (YYIN), down .18 points or minus 9.73%; China Shandong Industries, Inc. (CSNH), down .25 points or minus 9.26%; and China Kangtai Cactus Bio (CKGT), down .14 points or minus 8.48%. More stocks lost than gained in China Wednesday.

Shares of Acorn International, Inc. (ATV) gained more than 4% in Tuesday trading session to close at 3.69. This consumer products marketing company's gain followed days of drops after announcing a severe decline in first quarter net income as revenues plummeted. Acorn International is slightly off of the low of its fifty-two week range of 3.04 - 7.30.

Shares of China Shenghuo Pharma (KUN) rose more than 4% in Tuesday's session up to $0.73. Their first quarter report showed that revenues rose 17% year over year while gross profit margins rose about a third in the same time period. It sits at nearly the middle of its present fifty-two week range of 0.60 - 1.25.

Shares of NF Energy Saving Corp. (NFEC) rose more than 3% in the Tuesday session. First Quarter 2010 results showed that revenues gained 17% over the same period last year. At a close of $3.00 this stock sits at nearly the bottom of its fifty-two week range of 1.80 - 20.00.

Shares of SinoHub, Inc. (SIHI) rose more than 3% in the Tuesday session. The stock has been recovering off its recent lows since announcing that it would be presenting at the International PIPEs Conference 2010 in Shanghai. With a closing price of 2.71, it lies near the bottom of its current fifty-two week range of 2.05 - 5.70.

Shares of China America Holdings, Inc. (CAAH) plummeted by 13% Tuesday. The catastrophic drop came as a result of disappointing earnings results of a Net Loss for the First Six Months of Fiscal 2010 Narrowing to ($6,000). This compared to a relative Loss of ($669,000) in the Six Months Ended March 31, 2009.

Shares of China Shandong Industries, Inc. (CSNH) dropped by more than 9% in the Tuesday session. The company manufactures straw and wicker products, wooden handicraft products, indoor and outdoor wood furniture, office furniture, and Christmas gifts, and it exports its products to Europe, North America, and elsewhere in Asia. At a close of 2.45 the stock has pulled back 25% off its recent high of 3.29.

Shares of China Kangtai Cactus Bio. (CKGT) dropped by more than 8% Tuesday. The stock has continued to decline since earnings were less robust than anticipated last week, despite the fact that the drug maker's revenues reported rose by more than sixty-six percent and adjusted net income was up by more than twenty percent. It sits at the middle of its fifty-two week range of 0.67 - 3.00.

An undervalued yuan would make it cheaper and therefore more desirable for other countries to import products from China. Conversely, other countries wishing to export products to China would find the weak yuan cutting in to their profits. Without a more stable monetary policy, costly tariffs may be imposed and free trade may become more difficult.

The letter requested the Obama Administration to apply pressure and urge China to release the contents of the IMF staff report at next week's U.S.-China economic summit in Beijing. The May 24-25 Strategic and Economic Dialogue will include Treasury Secretary Geitner, Secretary of State, Hillary Clinton and a number of other key Obama officials. The rate of exchange is expected to be a main topic of discussion.

Today's top gainers were largely driven by good first quarter earnings. Topping the list was Perfect World Co.,Ltd. (PWRD), one of the largest online video game producers. Their very popular online games are distributed in China and later adapted for play in countries all around the world. Most recently was the May debut of the "Battle of the Immortals" in North America. Earnings rose 42% for the first quarter of 2010 compared to the same quarter one year ago. The Company earned 305.2 million yuan ($44.7 million) or 5.75 yuan (84 cents) per share. Shares rose 10.08%, closing at $27.20.

Sina Corp. (Sina) closed up $2.72 or 7.80%. An unexpected 150% increase in first quarter earnings over first quarter earnings in 2009, contributed to the stock's strong support. Sina's ad revenues rose 26% from last year's quarterly revenues. The company earned $24.4 million or 37 cents per share, a major improvement over the $9.7 million of a year earlier.

3SBio (SSRX), a leading Chinese biotechnology company was another strong performer. They announced unaudited financial results today. The company reported net revenues of $14.1 million, an increase of 40.5% over the first quarter of last year. The stock closed at $12.69, up 67 cents for a 5.57% gain.

China Sky One Medical, Inc. (CSKI) had a nice day. The large pharmaceutical company had record first quarter revenues which were largely attributable to its number one over the counter medicated creams and ointments. Sales of their popular ointments and creams increased 50% from the 2009 first quarter. Driven by revenues of $28.9 million (up 16.4%) and a gross profit of $21.6 million (up 15.1%), the stock gained 68 cents to close at $13.81.

Multiplatform Advertising Company Focus Media Holding Ltd. (FMCN) rounds out the top five gainers for today. The Company provides advertising on outdoor billboards, indoor movie screens, mobile handsets and several other areas. Earnings are scheduled for Thursday, May 20th, followed by a conference call later that evening.

The declining Chinese Market produced plenty of losers. China Armco Metals, Inc., is in the metal ore and non ferrous metal business. They also have a large scrap metal refining operation. Despite first quarter sales increasing 59% from last year's first quarter, investors dropped the stock more than 12% to close at $4.96 per share. China America Holdings, Inc. (CAAH) which sells for only pennies, dropped 1 cent to close at just 2 cents. China Agritech Inc. (CAGC) dropped almost 11% to $13.85. Revenues have been steadily declining from $27 million in September 2009 to $15 million in March 2009.

The second on the gainer's list was China Biologic Products (CBPO). The stock gained 15% on Wednesday before closing at $13.99. The stock is expected to show some resistance at the same levels and holds a support around $4. China Biologic Products, is a bio pharmaceutical company, engaging in the research, development, production, and manufacture of plasma-based pharmaceutical products in China.

The third gainer of the day was Asia Cork (AKRK). The stock gained almost 11% before closing at $0.48. The stock has a resistance level of 0.70 going upwards and a support level around $0.10 .

Another stock that ended in green was China Shandong Industries (CSNH). The intra day gain of the stock was $0.26 with a closing at $2.56. The company is a producer and global marketer of straw-wicker products, wooden crafts and solid wooden furniture.

Universal travel group (UTA) also gained some momentum showing a gain of 9.96%. The stock closed at $9.16.

The day trade also saw some massive losers. The first on the list was Baidu (BIDU). The stock crashed badly losing almost 90% before closing at $74. 21. The previous closing of the stock was $714.17. The company provides Chinese and Japanese language Internet search services.

Another loser of the day was Synutra International (SYUT). The stock lost almost 8% and closed at $24.42. The stock has a strong support around $8. Synutra International through its subsidiaries, engages in the production, processing, packaging, marketing, and sale of dairy based nutritional products primarily in China.

Acorn International (ATV) also ended in red. The stock lost 7.27% before closing at $4.40. The company operates as an integrated multi-platform marketing company that develops, promotes, and sells consumer products and services in China. The stock holds a strong support around $3.

American Oriental Bioengineering (AOB) and China Housing and Land Development (CHLN) also lost almost 4% in the trading session closing at $3.40 and $ 3.22 respectively. While the former is expected to show some support at $2, the latter finds a support level around $1.

Meanwhile in the stock market the bulls had yet another busy day in the stock market driving stocks to higher levels. Leading the pack of daily gainers was China Automotive System (CAAS) which gained around 7.71% to end the day at $20.81. The stock is facing a resistance at the level of $22. The company is involved in the manufacturing and sale of automotive systems and components in China. The company managed to beat the expectations of analysts by posting an earning of $0.34 which was 15 cents above the expectations of analysts.

At the second place was China Armco Metals (CNAM) which gained 3.62% to end the day at $4.87. The company is facing a resistance at $7. The company sells metal ores as well as non ferrous metal in China mainly to steel producers. The company is planning to raise $10 million selling stock in private placement.

The third place was occupied by China Advanced Construction Materials (CADC). The stock closed at $3.67 gaining 3.67% over the course of the day. The stock has faced a resistance at the level of $5.5. The company is a major player in the construction arena and enjoys the highest Return on Assets which stood at 19.52% for the last 12 months. The company also enjoyed an asset turnover ratio of 1.19 for the same period.

Focus Media Holdings (FMCN) also featured in the list of daily gainers gathering a 2.84% return to close the day at $15.57. Yongye International was comfortably placed at the fifth position gaining 2.32% to end the day at $7.06. The stock faces a resistance at around $7.7 levels.

The markets also saw a few stalwarts shedding some weight. Yingli Green Energy Holding (YGE) was the biggest loser of the day. The stock lost 6.17% to end the day at $10.80. The stock enjoys a support level at around $10.5. The company along with its intermediaries is involved in the designing, manufacturing and installation of Photovolatic products in China.

The second spot in the list of daily losers was occupied by Trina Solar (TSL) again a company involved in the business of Photovolatic cells. The stock enjoys a support level at around $21. The solar energy sector was amongst the worst hit in the market yesterday amidst fear of a Greek crisis.

AT the third place was L&L International Holdings (LLEN) which saw a decline of 4.36% to end the day at $9.65. The stock enjoys a support level at around $6.5. The stock also experienced stop loss trigger over the course of the day.

Solar Fun Power Holdings (SOLF) also reflected the bearish run in the sector shedding 4.73% to close the day at $7.65. Suntech power Holdings also featured amongst the losers shedding 3.50% to close the day at $11.87. The stock enjoys a support at the level of $14.

This is quite evident from the data showing the weekly gainers in China stocks. The topmost gainer has been Synutra International (SYUT) that gained 2.82% during the week, closing at $24.47. It deals in the production, processing, packaging, marketing, and sale of dairy based nutritional products primarily in the People’s Republic of China. The rise in consumer prices is showing its impact on the stocks of the companies in the consumer sector. The second place amongst the top gainers this week goes to China Shandong Industries (CSNH). This leading producer and global marketer of straw-wicker products, wooden crafts and solid wooden furniture saw its stocks rising by 1.66%. The closing price has been $2.45. Yanglin Soybean (YSYB) grabbed the third place with no gain or loss, and closing at $2.30.

In fact, the next two places also belong to companies that could only manage to save their stocks from any fall. They are China America Holdings (CAAH) and Asia Cork (AKRK), both showing no gain – no loss. China America Holdings is a U.S. based company establishing a presence in the People’s Republic of China (PRC), through strategic acquisition. Asia Cork is a Chinese company that is a leader in the development, manufacturing and marketing of quality cork-based building materials. While CAAH stocks closed at $0.03 that of AKRK closed at $0.53.

When it comes to weekly losers, three places belong to the companies that featured amongst the top 5 losers on Friday. Trina Solar (TSL) with a fall of 17.71% is the top most loser. Yingli Green Energy Holding (YGE) lost by 15.63% and is on the third place. Solarfun Power Holdings (SOLF) with a fall of 15% is on the fifth place amongst the top losers. With a 16.61% fall, LDK Solar (LDK) is in the second position amongst top 5 losers. This shows a rather gloomy week for the power and technology sector.

Melco Crown Entertainment (MPEL), a leading player dealing in the development, ownership, and operation of casino gaming and entertainment resort facilities primarily in the Macau special administrative region of the People’s Republic of China, is the only company in the service industry to face a fall in its stocks. With a 15.52% fall, it is on the fourth place amongst top 5 losers this week.

However, the stock market saw some stocks rising quite high despite the European debt crisis. China Automotive System (CAAS) was the top player. It gained around 8.44% by the end of the day, closing at $20.95. It was higher than the previous day’s 7.71% rise. This leading manufacturer of automotive systems and components in China has been showing a rise in its stocks against the expectations of most trade analysts. The list of other top gainers on Friday is largely the same companies who have been showing a rise since past one week. Second place amongst top gainers goes to China Armco Metals (CNAM) which gained 8.30% to end of the day at $5.09, the highest jump for this week. No wonder, the company’s plan to raise $10 million selling stock in private placement will turn out to be good decision.

The third place amongst top gainers on Friday goes to China Advanced Construction Materials (CADC). A leading construction company, the company recorded an asset turnover ratio of 1.19 during the last 12 months. Its stocks showed a jump of 0.16 points, which is 4.52% by the end of the day. The fourth and fifth place goes to Focus Media Holding (FMCN) and Yongye International (YONG) respectively. While Focus Media Holding stocks jumped by 2.84%, Younge International registered a growth of 2.32%.      

However, like the whole week, the day was not shining for all. The top loser of the day was Yingli Green Energy Holding (YGE) like other days. The stocks closed at $10.80, registering a fall of 6.17%. It is into designing, manufacturing and installation of Photovolatic products in China. The second biggest loser of the day is another company dealing in photovoltaic cells. Trina Solar (TSL) stocks fell by 5.99%, closing at $21.65. With a decline of 4.86% and closing at $9.60 by the end of the day, L&L International Holdings (LLEN) continues to maintain its third place amongst the biggest daily losers. 

Solar Fun Power Holdings (SOLF) too maintains its position and dipped by 4.73% to close the day at $7.65. Not far behind is Suntech power Holdings (STP) which too again featured amongst the losers, going down by 3.82% to close the day at $11.83.

Meanwhile in the stock market the bulls had yet another busy day in the stock market driving stocks to higher levels. Leading the pack of daily gainers was China Automotive System (CAAS) which gained around 7.71% to end the day at $20.81. The stock is facing a resistance at the level of $22. The company is involved in the manufacturing and sale of automotive systems and components in China. The company managed to beat the expectations of analysts by posting an earning of $0.34 which was 15 cents above the expectations of analysts.

At the second place was China Armco Metals (CNAM) which gained 3.62% to end the day at $4.87. The company is facing a resistance at $7. The company sells metal ores as well as non ferrous metal in China mainly to steel producers. The company is planning to raise $10 million selling stock in private placement.

The third place was occupied by China Advanced Construction Materials (CADC). The stock closed at $3.67 gaining 3.67% over the course of the day. The stock has faced a resistance at the level of $5.5. The company is a major player in the construction arena and enjoys the highest Return on Assets which stood at 19.52% for the last 12 months. The company also enjoyed an asset turnover ratio of 1.19 for the same period.

Focus Media Holdings (FMCN) also featured in the list of daily gainers gathering a 2.84% return to close the day at $15.57. Yongye International was comfortably placed at the fifth position gaining 2.32% to end the day at $7.06. The stock faces a resistance at around $7.7 levels.

The markets also saw a few stalwarts shedding some weight. Yingli Green Energy Holding (YGE) was the biggest loser of the day. The stock lost 6.17% to end the day at $10.80. The stock enjoys a support level at around $10.5. The company along with its intermediaries is involved in the designing, manufacturing and installation of Photovolatic products in China.

The second spot in the list of daily losers was occupied by Trina Solar (TSL) again a company involved in the business of Photovolatic cells. The stock enjoys a support level at around $21. The solar energy sector was amongst the worst hit in the market yesterday amidst fear of a Greek crisis.

AT the third place was L&L International Holdings (LLEN) which saw a decline of 4.36% to end the day at $9.65. The stock enjoys a support level at around $6.5. The stock also experienced stop loss trigger over the course of the day.

Solar Fun Power Holdings (SOLF) also reflected the bearish run in the sector shedding 4.73% to close the day at $7.65. Suntech power Holdings also featured amongst the losers shedding 3.50% to close the day at $11.87. The stock enjoys a support at the level of $14.

Amidst growing concern over the crisis in Europe the China 100 Stock Index fell by 2.58% to end the day at 939.54 points. This meant a fall of 24.84 points over the course of the day. A few stocks however managed to weather the storm and post decent returns. At the top of the lost of daily gainers was China Agritech (CAGC). The stock gained 3.42 % to end the day at $15.10. The company is involved in manufacturing and selling organic liquid compound fertilizer. The stock faces a resistance at the level of $20.

Synutra International (SYUT) stood at the second place in the list of daily gainers. The stock has seen a lot of upward movement lately and is facing a resistance at $24.5 levels. The company is a leading manufacturer of infant formula in China. The company has been able to resolve a product liability lawsuit in the US recently. China Biologic Products (CBPO) also made handsome gains in the stock market clocking a 2.82% increase to close the day at $12.04. The company is involved in the research, development, production and manufacturing of plasma based pharmaceuticals in China. The stock faces a resistance at $12.5.

Tiens Biotech (TBV) also posted handsome gains for the day closing at $2.22. The stock gained 2.78% over the previous close. China 3C (CHCG) also had an impressive run in the market posting a gain of 2.56% to end the day at $0.40.

Along with the daily gainer the markets also witnessed stocks shedding a few points. Telestone Technologies (TSTC) lost around 9.44% to end the day at $11.90. LDK Solar (LDK) also lost 9.08% to end the day at $6.91. China Automotive Systems (CAAS) lost 8.70% to close at $19.32. L&L International Holdings (LLEN) also lost around 8.36% to close the day at $10.09. Melco Crown Entertainment (MPEL) lost 7.17% to close the day at $4.27.

L&L International Holdings (LLEN) lead the charge of the bulls gaining an impressive 4.86% to close the day at $11.01. The stock is facing a resistance at $14 in the short term. The company is a major player in the energy markets in China. It is involved in operating coal mine and coal washing facilities in China. The company has announced that it will exceed the previously provided guidelines in March 2010 which has generated a lot of stir in the stock prices.

China Shandong Industries (CSNH) also saw an upward movement registering a 1.66% change to close the day at $2.45. The company is into the field of straw wicker products, wooden crafts and solid wooden furniture. The company has filed S-1 registration statement with the Securities and Exchange Commission for a proposed public offering of its common stock. The proceeds from the offerings will be used by the company to set up a high end production line for manufacturing latest furniture.

China Bak Battery (CBAK) also registered a 1.47% change to close at $2.07. The company is involved in manufacturing and distributing various lithium ion rechargeable batteries. The stock is facing a resistance at the level of $2.04. Making a remarkable entry at the fourth position in the list of top gainers was HQ Sustainable Maritime Industries (HQS). The stock gained 0.69% to end the day at $5.84. The company is a leading producer of functional Tilapia Biomass, including fish and healthcare products. The company will be announcing the re financial results for the first quarter ended March 31 2010 on May 10 2010.

Yanglin Soybean (YSYB) also found itself in the list of daily gainers at the fifth position although there was no change in the price of the stock. The company is the leading producer of Soybean oil and products in china. The company has reported an increase in net income to $44.91 million for the year ended December 31 2009 which is an impressive figure compared to $9.9 million for the year ended December 31 2008.

While the Bulls continued to charge, the bears also had a busy day with the news of crisis in Europe pouring in. Air Media Group (AMCN) registered the maximum losses for the day losing around 12.14% to close the day at $5.50. The stock has a support level at $5. The company is a leading operator of out of home advertising platforms in China.

China Agritech (CAGC) continued its bear run in the market shedding around 9.71% to end the day at $14.60. E House China Holdings (EJ) also ended the day on red losing around 9.29% to close the day at $14.75. JA Solar Holdings (JASO) also lost around 8.96% to end the day at $6.30. SORL Auto Parts also found itself in the list of losers at the fifth position losing around 8.75% to close at $10.22.

Riding on the waves of a global recovery the China 100 Stock Index gained 4.31 points to close the say at 1002.90 which meant a 0.43% increase over its previous closing. The top gainer for the day was JA Solar Holdings (JASO). The stock gained an impressive 13.26% to close the day at $6.92. This was a $0.81 gain over its previous price. The stock has managed to breach the traditional resistance level at $6.7 levels. The market is very bullish on the stock as it is expected to report earnings of $0.18 on sales of $265 million.

Following the footsteps of JASO was China Transinfo Technology (CTFO). The stock posted a handsome return of 7.57% to close the day at $7.53. The stock is facing a resistance at $8.1 in the near term. The company provides real time public transportation information system technology and comprehensive solutions in China. It has also provided information and control system for the world expo in China. The company has been in news recently for launching fleet management service system in Hunan province which is generating a lot of activity in the stock.

China Marine Food Group (CMFO) managed to garner a bronze for the day gaining 6.33% over the course of trading. The stock closed at $6.55 and faces a resistance at $7. The company is a manufacturer of seafood based snack foods and also a distributor of fresh and frozen marine catch. The company is generating a lot of interest with its recent announcement to construct extensive cold storage facility in Shishi fishing port. SORL Auto Parts (SORL) also managed to gain 5.76% to close the day at $11.20. This meant a gain of 5.76%. QKL Stores (QKLS) also provided good return for its investors gaining 4.52% to close the day at $6.01.

While the bulls continued hie charge on the street the bears were also involved in some action. China Advanced Construction Material (CADC) slipped by around 4.49% to close the day at $4.04. The low prices of the company's stock can be attributed to the heavy selling pressure form certain parties mainly the holders of the company's convertible preferred shares. The low trading volume is also a matter of worry as far as the price of the stock is concerned.

China Valves Technology (CVVT) also lost 4.38% to close the day at $10.47. The stock has support level at $9.5 in the short term. Yanzhou Coal Mining (YZC) also suffered looses shedding around 4.27% to close the day at $26.66. China Architectural Engineering (CAEI) also lost 4.20% to close the day at $1.14. Acorn International (ATV) also posted a 3.99% loss to close the day at $4.33. The stock enjoys a support level at around $3.5 in the short term.

The China 100 Stock Index dropped by 17.84 points to close the day at 996.89. However, quite a few stocks weathered the fall and managed to post profit. Leading the pack of daily gainers is ReneSola (SOL) right at the top. The company is a major player in the manufacture and sale of solar products and wafers. The stock gained 6.55% to close at $7.81 which was $0.48 above its opening price. The chart movements depict that the company has breached all the traditional resistance levels and is very near to its yearly estimate price of $7.90. The company's earnings conference call on the 10th is already generating a lot of excitement.

Sinovac Biotech (SVA) is one of the biggest pharmaceuticals company in China involved in the manufacturing of vaccines. The company posted a return of 5.08% over the course of day to close the day on $5.79. The stock has a resistance at around $7.8. Tiens Biotech Group USA (TBV) ended the day at $2.29. The company is in the business of developing and manufacturing nutritional supplementary products. The company registered a $3.62 to close the day at $2.29.

The other stocks which registered an upward movement included Yanzhou Coal Mining (YZC). The company registered a 3.38% change in the price to $27.85. This was a $0.91 change in the price of the stock. China Telecom (CHA) posted a 2.18% change in the stock prices to $45.90. The target price of the stock over a one year range is $56.41. The company offers mobile and broadband telecommunication services in China.

In trend with the falling market a few reflected the bearish sentiment. Asia Cork (AKRK) proved to be the biggest loser in the day shedding 7.27% to $0.51. There is a support level for the stock at $0.38 level. Agria Corportaion (GRO) registered a 7.11% loss to close the day at $1.83. The company lost $0.14 over the course of trading. The stock has plummeted over the last few days and even breached the support levels.

China 3C Group (CHCG) also featured among the losers shedding 6.82% to close the day at $0.41. AsiaInfo Holdings (ASIA) also featured in the list of losers for the day losing 6.61 % to $28.41. China Armco Metals (CNAM) also featured amongst the losers losing around 5.85% to close at $5.47. The stock has enjoyed support levels traditionally at the level of $5.00.

There was lot of activity in the stock markets with a few firms posting impressive returns. Topping the list of gainers was Baidu (BIDU) which gained 14.24% to end the day at $709.87. This meant that the stock gained $88.49 over the course of the day. This is the highest levels achieved by Baidu in recent years as the Internet search giant rides on the wave of growing Internet penetration in China. JA Solar Holding (JASO) also made impressive gains over the course of the day surging 9.44% to close the day at $6.26. The stock has a resistance at around $6.5 level.

Yanzhou Coal Mining (YZC) continued its impressive run over the day gaining 9.16% to close at $26.94. Solarfun Power Holdings (SOLF) also gained momentum and posted a return of 8.68% to close at $9.14. The stock is expected to touch $10.78 over the course of the year. ReneSola Ltd (SOL) also made some impressive gains in the day and posted an 8.59% return to $7.33. This was a $0.58 increase over its current prices.

China Housing and Land Development (CHLN) also witnessed a 8.48% return to close at $3.58. The company is a major player in real estate in China. It is involved in acquiring as well as developing real estate. The scrip has a resistance at $4.5 level. Trina Solar (TSL) also gained 7.41% to close the day at $26.80. China Biological Products (CBPO) also continued its bull run gaining 7.04% to close at $12.46. Other gainers in the day included China INSOnline (CHIO) posting a 6.90% return to $0.62. The stock price is hovering around the resistance level at $0.8. LDK Solar (LDK) also had an impressive run, gaining around 6.56%. The company closed the day at $8.12 marking a $0.50 change.

Along with the winners, there were also a few losers over the course of the day. China America Holdings (CAAH) was topping the list, nosediving 25% to close the day at $0.03. This marked a $0.01 change in the price of the stock. NF Energy Saving (NFEC) also registered a 6.53% loss to $3.58. The stock has a support at around $3.2. China Kangtai Cactus Bio (CKGT) also featured amongst the losers shedding $0.11 to $2.33. China Armco Metals (CNAM) lost 4.44% to end the day at $5.81. China Telecom (CHA) fell 4.24% to close the day at $44.92.

The9 Limited (NCTY) dropped 3.29% to $6.47. CDC (CHINA) shares were down 3.27% to $2.66 on account of a weak technical. L&L International Holdings (LLEN) lost 2.65% to $11.02. This was a $0.30 fall in its value. Long Top Financial Technologies (LFT) saw a 2.17% fall in its value to $34.73.

The trading counter witnessed tremendous activity throughout the day with a few notching up handsome profits. Leading the pack was China American Holdings, Inc (CAAH) which saw a whopping 33.3% increase to end the day at $0.04. The stock saw a tremendous increase in its volume, which helped in driving the prices up. Cninsure Inc (CISG) also ended the day on a positive note with impressive gains of 8.95%. The stock gained $2.25 to close at $27.40. CISG has been able to breach the resistance at $26.00 levels and is poised for a higher growth in the future.

China Unicom Honk Kong Limited (CHU) also made some gains and added 4.03% to close at $12.38, which was $0.48 above its opening price. Solarfun Power Holdings Co. Ltd. (SOLF) also had a successful run and gained around 3.57% to close at $8.41. As per the charts, the stock is facing resistance at $9.00. The expected price range over the year is $10.78.

Synutra International Inc (SYUT) also featured amongst the gainers of the day. The stock increased 2.31% to $23.00. The stock is facing a resistance at $24.00 as per the charts. Shares of CNOOC Ltd (CEO) were up 2.24% to end the day at $175.59. E-House China Holdings Limited (EJ) made a gain of 2.22% to $16.55. The company offers end to end services in the real estate sector.

Along with the losers, the counter too witnessed erosion in the prices of various stocks. China Advanced Construction Materials Group (CADC) had a drop of 8.97% to close the day at $4.16. Asia Cork Inc (AKRK) finished the day in the red registering a loss of 8.77% to $0.52. The stock has a major resistance level located at $0.58.

China Valves Technology Inc (CVVT) too featured among the losers, shedding $0.83 to $10.81. The stock lost 7.13% over the course of the day. China Agritech Inc (CAGC) shares fall 7.11% to end the day at $17.12. The stock has a support located at $16. The company is the major supplier of fertilizers and other agricultural products in China.

Yayi International (YYIN) also suffered losses in the market. The stock dropped 5.44% to $2.26. The charts depict a support level for the stock at $2. Agria Corporation (GRO) shares were down 4.48% to $1.92. Rene Sola Ltd. (SOL) lost 4.39% to finish the day at $6.75. SOL has a major support located at $6.2. China Transinfo Technology Corp (CTFO) ended in the red losing 4.03% to close the day at $7.15. CTFO has a support level at around $6 as per the charts.

The stock market witnessed a lot of activity over the day with the China 100 stock Index finally registering a loss of 2.72% to close 28.09 points down. However, a few stock managed to outperform the index and provided handsome returns to investors. Leading the pack of top gainers was Asia Cork Inc (AKRK), a Chinese company which is a leader in supplying cork based building material. The stock managed to register an impressive growth rate of 11.76% to close at $0.57. The stock has a resistance at $0.7 and enjoys a support level at $0.4.

China Architectural Engineering (CAEI) also posted an impressive return over the course of the day. The stock opened at $1.14 posting a 4.42% return to close at $1.18. The company is a major player in designing and constructing projects for both public works and commercial real estate projects. The stock has been bale to bounce back form its previous levels and is all set to breach the resistance level at $1.2. With the volume being traded more than doubling the stock is all set to see a lot of action in the coming days.

China Shenghuo Pharma (KUN) also made rapid strides in the day to post an impressive growth of 3.75%. The stock opened at $0.8 to finally close at $0.83. The charts saw a lot of movement with a major resistance at $0.95. The company is a major player in pharmaceuticals and a major player in exports. With an expected price range of $0.6-$1.25 the stock is a good bet as far as investing in the fundamental pharmacy sector is concerned. Telestone Technologies Corp (TSTC) registered a 2.93% growth to closed at $14.74 after opening at $14.24. The stock has a resistance at around $24.5 which is expected to be breached within a one year time frame. NF Energy Saving Corp (NFEC) also gained 2.13% to close at $3.83. In the near term the company has a resistance level at around $5.

Along side the winners there were certain losers in the day as well with China America Holdings (CAAH) suffering the greatest losses. The stock nosedived to close at $0.03 after opening at $0.04 registering a humongous loss of 25%. China BAK Battery (CBAK) also featured among the losers with the stock losing 13.85% over the course of trading. The stock opened at 2.19 to finally close at 1.99. The stock has the highest debt to EBITDA ratio in the electrical component and equipment industry. The ratio is a measure of debt payback period and is directly proportional to the risk.

China Shandong Industries (CSNH) also ended the day in red losing around 9.39 % to close at $2.51. China Automotive Systems (CAAS) dropped by 8.57% to end the trading day at $21.99. The stock has a support level at $20 in the near term. China Agritech (CAGC) registered a 7.85% decline to close at $18.43.

Among today’s top gainers, Shares of L&L International (LLEN), a coal operator serving China’s coal market, slightly bounced back from previous excessive sell off. The stock settled at $11.92 or 11.19% higher. LLEN has a solid support at its rising 50-day moving average. 51job (JOBS) shares had a strong run today, breaking straight through the resistance at $19.69 and finished at $20.52 on three times the average trading volume. AsiaInfo Holdings (ASIA) jumped above the resistance at $30.00 and settled at $32.05 with a 7.48% gain on double its usual trading volume. The next resistance is located at $32.45.

China Biologic Products (CBPO) also had a sharp run-up today. Shares of the company regained the previous loss and further broke through the resistance at $11.5, closing at $11.76 with a gain of 6.23% on nearly two times the average trading volume. CBPO is currently traded well above both 50-day and 200-day moving averages. SinoHub (SIHI) climbed back from the losses in the last few sessions, rallying 4.91% to $2.99. The company today announced that it will present at three upcoming investor conferences in the month of May 2010, including JMP securities research conference, Renn global annual meeting and investor conference, and Rodman & Renshaw annual global investment conference.

Among today’s top losers, China Security & Surveillance Technology (CSR) today announced its 2010 first quarter financial results and its shares nosedived 17.66% to $6.20. Total revenues for the first quarter increased 24.7% to $120.19 million year-over-year. Gross margin was 24.1% compared to 26.0% for the same period last year. Income from operating was $6.97 million versus $7.98 million for the 2009 first quarter. Operating margin was 5.8% versus 8.3% in the first quarter of 2009 as a result of a lower gross margin and higher general and administrative expenses, including non-cash employee compensation. Net income was $3.28 million, or $0.05 per share, compared to $2.00 million, or $0.04 per share for the same quarter last year. Though the company reported growth in both revenue and net income, the decreased operating margin and the lack of guidance for year 2010 worry the investors and further drag the stock price down hard.

Shares of China INSOnline (CHIO) pulled back from previous rally, dropping 6.45% to the 50-day moving average of $0.58. CHIO has been volatile lately. China Housing and Land Development (CHLN) continued its downward trend since the China Government tightened the home-loan guidance. Shares of the company fell 4.36%, closing at $3.51. China Advanced Construction Materials Group (CADC) also continued its downward momentum since two weeks ago. The stock was down 4.08% and is currently treaded below both 50-day and 200-day moving averages. Shares of China Shenghuo Pharmaceutical Holdings (KUN) slipped 3.61% to $0.80 but with very little volume. KUN is a thin volume stock with a 3-month average trading volume of 11,000 shares. The stock currently has a support of $0.78 and resistance of $0.84.

Among the top gainers of the week, Orient Paper (ONP) was the best performing stock for the week, advancing 16.00% to $10.80. The stock climbed back from previous losses and broke through its 50-day moving average on Wednesday. In the end of the week, ONP ended with a 10.20% gain on strong volume due to several researchers’ coverage. China Automotive Systems (CAAS) gradually recovered from the previous losses at the beginning of the week and surged 7.51% on Friday with strong underlying volume. 2010 Beijing International Automotive Exhibition, a major auto show in the world, raised its curtain this Friday and all the Chinese auto stocks in 100 China Stock Index moved upside as investors anticipate the show is going to boost bottom line for the automotive companies.

China TransInfo Technology (CTFO) was bullish this week, up 15.60%. The company on Tuesday announced that the company-designed information and control system for major commercial vehicles was officially launched on April 14, 2010, at the World Expo in Shanghai. In addition, on Thursday after the closing bell, China Transinfo launched its fleet management service business in Hunan Province, sending its shares up with a 5.42% gain on nearly two times the regular trading volume. CTFO broke through the resistance at its 50-day moving average on Thursday and closed right below the 200-day moving average in the end of the week.

RenoSola (SOL) regained the losses occurred last week and further ascended with a gain of 13.62% for the week. The stock hit a 40-week high of $7.34 on Friday and closed at the high. RenoSola announced that it is going to report its financial results for the 2010 first quarter before the market opens on Monday, May 10, 2010. Research analysts estimate that SOL had revenues of $186.80 million and an EPS of $0.09 for the 2010 first quarter, representing growth rates of 74.70% and 120.45% year-over-year respectively. China Agritech (CAGC) slightly jumped back from the huge sell-off in the previous sessions with a gain of 11.51%. On Tuesday, the stock rallied 14.10% and it was mostly a dead cat bounce.

Among the downside movers of the week, Yayi International (YYIN), a manufacturer of premium goat milk formula products, bulled back from the rally last week with a loss of 14.81% to close at $2.30 on Friday. YYIN has a solid resistance at $3.00 and a support at $2.05. This is a thin volume stock with a 3-month average volume of less than 45,000 shares. China INSOnline (CHIO), a small cap licensed insurance agency, gave up the gains from previous sessions and had a 16.22% loss this week. CHIO currently has a support level located at $0.53.

Yanglin Soybean (YSYB) last Friday announced its 2009 annual financial results. Total revenues decreased 35.6% and net income increased 353.5%. The company has restated the 2008 financial statements as a result of the company’s failure to achieve listing on national stock exchange. One of the company’s major shareholders transferred 1 million shares of common stock to the investor. Yanglin is extremely lack of investor awareness. The stock was down 13.21% but with very little volume. L&L International (LLEN) continued to give back the previous gains, down 11.40% to $10.72, closely above the support at 50-day moving average. On Friday, the company announced that it sold HSC subsidiary for US $6 million for strategic alignment, which was originally bought for $3.86 million.

China Shandong Industries (CSNH) lost 10.65% to finish at $2.77. On Wednesday, the company filed S-1 registration statement, containing a preliminary prospectus. The company plans to offer $20 million of shares of its common stock. The number of shares offered will be determined based on the public offering price per share. The company intends to use the net proceeds from the proposed offering to fund a substantial portion of a proposed new furniture production line.

All the Chinese auto parts stocks in the China 100 Stock Index moved upside today. SORL Auto Parts (SORL) recovered all the losses and further moved north to $10.87 or 9.69% higher on double the regular trading volume. The stock is traded above its 50 and 200 day moving averages, but may not see much resistant on the upside until $12.78. With the support at the rising 50-day moving average, shares of China Automotive Systems (CAAS) recovered the momentum, gained 7.51% to $23.75 on nearly 50% more than the average trading volume. Tongxin International (TXIC) jumped back from previous lag, closing back at $8.00 level with a 3.49% gain.

51job (JOBS) recovered from the losses in previous sessions, advancing 11.05% to $19.10 on 200,000 shares, 2.70% of the float. JOBS has a resistance located at $19.5. Orient Paper (ONP) posted a 10.20% gain to close at $10.80 thanks to several researchers’ coverage. Trading volume was strong this session, 969,000 shares traded or 8.53% of the float. ONP has a resistance located at $11.00. Shares of China INSOnline (CHIO) slightly climbed back and settled at $0.62 with a 6.90% gain on average trading volume.

L & L International (LLEN), a coal mining company, has declined for several days since the stock reached a high two weeks ago. Shares of the company were down 5.55% to $10.72. Amid the session, LLEN hit a low below a supply level at $10.27. Before today’s opening bell, the company announced that it sold its 93% equity in HSC subsidiary for approximately US $6 million. L & L original purchased its shares for $3.86 million. CEO of the company commented, “This transaction allows a strategic realignment, preparing L&L for other acquisitions”.

Shares of Asia Cork (AKRK) continued to pull back from previous gains, after two days of flat. The stock dropped 3.77% to $0.51 but with light volume. China Armco Metals (CNAM) fell 2.97% after a small rally in yesterday’s session. The stock is currently traded at below its 50-day moving average. Agria Corporation (GRO) continued the downward trend and closed at $2.09 with a loss of 2.79% on average volume.

China Shandong Industries (CSNH) pulled back 2.81% for the day to close at $2.77 with thin volume. CSNH this Wednesday announced that it has filed a registration statement on Form S-1 with the SEC for a proposed public offering of its common stock. The company intends to use the net proceeds from the proposed offering to fund a substantial portion of a proposed new furniture production line, which will manufacture a higher-end line of furniture.

Ctrip.com International (CTRP), a leading travel service provider in China, was oversold following an excessive sell-off starting last Friday and had a reversal today. Shares of the company broke above 50-day moving average and finished 5.63% higher to $38.06. Universal Travel Group (UTA) had a third rally and broke straight through the 50-day moving average. Shares added 2.72% on average volume.

Biostar Pharmaceuticals (BSPM) announced that it is approved for listing on NASDAQ global market and its stock will commence trading on NASDAQ tomorrow. Shares were propelled immediately and surged 6.73% for the day. Amid the session, BSPM set a new 52-week high of $5.50. The trade was active with 1.08 million shares trading hands, over five times the average trading volume or 6.75% of the float. Telestone Technologies (TSTC) slightly climbed back from previous losses and settled 6.45% higher to $14.53 accompanied by light volume, 43% less than the average trading volume. The stock has a support located at $13.14. China-Biotics (CHBT) make it the third rally with a 4.48% gain following a positive news announced by the company this Tuesday and an encouraging commentary posted on TheStreet.com yesterday. Solarfun Power Holdings (SOLF) climbed back from yesterday’s loss, adding 4.46% to close at $8.66. The stock has a solid support at $8.00.

Yanglin Soybean (YSYB) reported its 2009 annual financial results last Friday. Total revenues for the full year 2009 decreased 35.6% to $161.6 million as the combination of demand softness and oversupply of imported soybeans. Net income was $44.9 million, or $1.42 per diluted share, compared to $9.9 million, or $0.26 per diluted share, for the last year. The company has also restated the financial statements of 2008 as a result of the company’s failure to achieve listing on a National Stock Exchange. The company’s major shareholder committed to transfer 1 million shares of common stock to the purchasers of shares of Series A Convertible Preferred Stock. The company recorded a stock exchange listing expense for $4.48 million for the year of 2008. Yanglin Soybean is extremely lack of investor awareness with very thin trading volume. Shares of the company were down 13.21% with little volume traded.

Shares of 51job (JOBS) broke below the support level at 50 day moving average and sank 6.01% to $17.20 for the day with 250,000 shares traded. JOBS has a very small float of 7.4 million shares which keeps the stock volatile. The next possible support would be at $15.32. L & L International (LLEN) continues its downward momentum from the previous gains, lagging 5.13% to $11.35 on recent average volume. The stock has a support located at its rising 50-day moving average.

The policy of tightening bank loan for third-home purchases and the concern of China’s housing bubble have continually pushed Chinese real estate stocks down. Xinyuan Real Estate Company (XIN) dropped 4.20% to $3.65 while E-House China (EJ) slipped 2.28%. Both stocks are traded below the 50-day and 200-day moving averages. Shares of China Kangtai Cactus Bio (CKGT) continue to pull back from previous gains underpinned by positive 2009 earnings results. The stock finished with a loss of 2.88% to $2.36, above its 50-day moving average of $2.27.

The increased use of air conditioning in China coupled with the boom in car ownership can explain China America's revenue growth in the past two years. In 2007, China America produced $16.29 million in revenue. For the year ended 2008, revenue increased 113% to $34.968 million. Effective September 7, 2009, the company changed its fiscal year end from December 31 to September 30. However, for the sake comparison we'll utilize the calendar year numbers. Thus, during the calendar year 2009 China America reported revenue of $33.948 million.

On April 15, the company announced that its 56% owned China based subsidiary Shanghai AoHong Chemical Co., Ltd. ("Shanghai Aohong") has begun test run production at its newly constructed chemical production facility in Tianjin. The newly constructed facility is located in Tianjin, approximately 70 miles north of Beijing. The facility is expected to produce approximately 8,000 tons of a mixture of refrigerant chemicals per year, virtually doubling Shanghai Aohong's total annual capacity. At today's prices, management estimates the facility is capable of generating annual revenue of approximately U.S. $22 million. What impact this new facility has on the 2010 results is still unknown at this point.

What China Vesting does know is that as of February 12, 2010 China America has 159,810,792 shares of common stock issued and outstanding. Based on the April 20th closing price of $0.04 per share the current market capitalization is just $6.392 million. China America suffers from "penny stock" syndrome whereby the stock is too low to attract investors. From China Vesting's perspective we believe that the company is undervalued and if CAAH focused on improving its image (ever heard of a reverse stock split) the stock should outperform.

Unlike most stocks that trade at the $0.04 levels, CAAH does not need cash to continue operating its business. As of December 31, 2009 the company had $2,326,153 in cash and $994,559 in restricted cash which totals $3,320,712. Accounts receivable stood at $2,597,670 while inventory levels were $2,123,835. Total current assets were $8,664,776 while total assets including property and equipment were $15,255,739 or $0.095 per share.

On the liabilities side the big item is the $4,120,244 note payable which is not a difficult debt to service considering the company's cash on hand. The total current liabilities are $6,674,000 which equates to net assets being $8,581,739 or $0.053 per share. This means that China America's assets are worth 34% more than the public market value of the company without factoring in the business which generates over $30 million dollars a year in business. Currently, the only problem is that CAAH does not make a lot of money but it also doesn't lose a lot of money.

For the past three years China America has produced revenue of $16.29 million (2007), $34.968 million (2008) and $33.948 million (2009) respectively. Net income during the same period has been a loss of $1.119 million (2007), loss of $561k (2008), and a loss of $633k (2009). It seems like in the past three years the company has just not been able to get over the hump. What seems to be the problem?

The gross profit margins in the past three years were 16.37% (2007), 8.33% (2008) and 9.24% (2009). At least the company has gross profits and is not in the business of selling things for less than they can produce them. The question to ask is what the impact from the new Tianjin facility means to the bottom line. We would hope that the newly constructed chemical production facility would be able to produce some profits to the bottom line.

In a press release dated April 15th the company states:

The facility is expected to produce approximately 8,000 tons of a mixture of refrigerant chemicals per year, virtually doubling Shanghai Aohong's total annual capacity. At today's prices, management estimates the facility is capable of generating annual revenue of approximately U.S. $22 million.

China America currently has three business segments:

1. Distribution of bulk quantities of liquid coolants directly to customers who in turn resell the product. For three months ended December 31, 2009 this segment represented 44% of revenues.
2. Sales of liquid coolants which had been purchased in bulk and repackaged into smaller qualities for resale. For three months ended December 31, 2009 this segment represented 50% of revenues.
3. Custom mixing of various raw materials in accordance with customer specifications into a new product. For three months ended December 31, 2009 this segment represented 6% of revenues.

If the current capacity is $11 million and it doubled to $22 million we can assume that revenues in 2010 should be the 2009 figure of $33.948 million + the $11 million in additional revenue. That would mean 2010 revenue of $44.948 million representing growth of 32.4%. However, the biggest question remains if the company will report a net profit. It is important to keep things in perspective, CAAH's total company value is currently just $6.392 million. There is no profit (P) to the Price to Earnings Ratio (P/E) equation yet but that is also why China America's assets are worth 34% more than the public market value of the company.

It is going to be very interesting to see what becomes of China America's financials this year. With revenues in the $30-$40 million dollar range, if the company could squeeze out a net profit margin of just 5% the market would potentially value the company at 8-12 times earnings or even higher based on growth. That would equate to a market capitalization of $15-$24 million or $0.09-$0.15 per share. Which brings us to the next point...If China America wants to attract serious investors they are going to have to reverse split the stock.

159,810,792 shares of common stock issued and outstanding is just way too much. Reversing the shares 10 for 1 would cut the share count down to 15.98 million and the stock price to the $0.40 levels. However, if CAAH could produce a profit for 2010 then in our opinion the shares would move significantly higher. Addressing how the company looks is an important first step for the company but this moves lock step with generating profits.

China Vesting looks at CAAH and sees a $6.392 million company with net assets of $8,581,739 or $0.053 per share. The company has a total cash position of $3,320,712 and does not appear to need funding to keep its doors open. Owning shares of China America is similar to holding a call option on a $33.948 million business operation that has stated publicly that they will be able to double one of their business segments. Based on the April 20th closing price of $0.04 per share, we believe this $6.392 million dollar company is undervalued. It is for this reason that China Vesting has taken the unusual step of adding a "penny stock" to our China Dragon Undervalued Index.

Shares of Orient Paper (ONP) bounced back from previous losses with a 4.94% gain to close at $9.78 on average trading volume. The stock currently has a support of $8.89 and a resistance of $10.18. Shares of China 3C Group (CHCG) jumped back from yesterday’s drop and closed at $0.45, or 4.65% higher. CHCG has a solid resistance level at its descending 50-day moving average. New Energy Systems Group (NEWN) recouped all of its losses from the prior sessions with a gain of 4.15%, closing at $8.53. NEWN currently has a resistance located at $8.75.

China-Biotics (CHBT) yesterday announced that it has received the GMP approval for its new Qingpu production facility. With the certificate, the facility is manufacturing all products under the nation’s strict GMP standard. Qingpu production facility features a 150 metric ton annual production capacity with production expected to reach a run rate of 75 metric tons by the end of 2010. Shares of the company rallied 3.01% yesterday. Following a positive commentary issued by TheStreet.com this morning, the stock was up another 3.82%, closing back above its 50-day moving average.

Among the worst performing stocks, shares of Yayi International (YYIN) slumped 14.81% and closed at $2.30 for the day. The company has a strong resistance level at $3.00 and a support located at $2.05. Total volume traded in today’s session accounted for 122,000 shares, representing only 1.19% of the float. Yayi International is a manufacturer of premium goat milk formula products.

China Armco Metals (CNAM) announced that it will sell 1.53 million shares of common stock to institutional investors in a private placement at $6.50 per share for proceeds of approximately $10 million. The buyer will also receive warrants to purchase 1.53 million shares of common stock, exercisable at $7.50 per share. According to the company, net proceeds will be used for general working capital purposes. The stock dipped 11.22% to $6.17 on nearly two times the average trading volume.

China INSOnline (CHIO), an online insurance provider, tumbled 10.61% to $0.59, closely above the support at 50-day moving average following a negative commentary issued by TheStreet.com. The reporter mentioned that though China INSOnline has great profit margins and high returns on equity but he has been unable to get in tough with the company. In addition, the internet rumor that the company is suffering from a bad business as a dramatic decrease in the number of visitors to its industry web portal www.soobao.cn, has seriously hurt the stock.

Most of the Chinese solar stocks in China 100 Stock Index lost ground today after Canadian Solar, one of the world’s largest solar power company, announced a lower margin forecast. Trina Solar (TSL) decreased the most, falling 6.81% to $24.374, closely above the 50-day moving average. LDK Solar (LDK) pulled back from yesterday’s gain and broke below the 200-day moving average with a loss of 4.24%. Suntech Power (STP) fall 3.67% to close below 50-day moving average while Solarfun Power (SOLF) dropped 3.6%, Yingli Green Energy (YGE) down 2.41%, and JA Solar (JASO) slipped 0.83%.

By capitalizing this explosive studying abroad wave, New Oriental Education and Technology Group (EDU) has grown from a class of only 30 students to China’s largest private education service provider. The company today announced better-than-expected earnings results for the third fiscal quarter 2010 and shares hit a new 52-week high of $100.62. The company reported net revenues increased 36.2% year-over-year to $89.2 million, driven by the increase in the number of student enrollments in language training and test preparation courses. Net income rose 33.0% to $13.8 million and EPS was $0.37 compared to $0.28 in the same period last year. For the 2010 fourth quarter outlook, New Oriental Education and Technology expects net revenues to be in the range of $75.5 million to $78.4 million, representing year-over-year growth in the range of 27% to 32%. Shares of the company closed at $99.85 with a gain of 8.52% on more than two times the average trading volume.

Among other top gainers, China Agritech (CAGC) shares slightly climbed back from previous huge sell-off, and broke above the 100-day moving average. The stock ended at $19.80 or 14.10% higher on 50% more than the average trading volume. Today’s bounce back is more of a dead cat bounce. ReneSola (SOL) hit a 40-week high of $7.10 and closed at $7.05 with a huge gain of 9.13% on nearly two times the average trading volume. Melco Crown Entertainment (MPEL) had a major reversal today. Shares climbed back from a support at the rising 50-day moving average and broke above the 200-day moving average. Before the closing bell, MPEL ended at $5.05 with a increase of 8.84% on strong underlying volume. Cninsure (CISG), an insurance agency and brokerage company in China, rebounded from previous losses and added 7.54% to $27.39 on average volume. The stock has a solid support level at its increasing 50-day moving average.

Shares of China Shandong Industries (CSNH) reversed the early gains and lost 14.52% to $2.65 accompanied by light volume. The company today filed a Form S-1 for registration of securities, containing a preliminary prospectus. CSNH states that the company is offering $20 million of shares of the common stock and the number of shares offered will be determined based on the public offering price per share.

China INSOnline Corp (CHIO) pulled back from yesterday’s major gain as profit taking came in. Shares of the company dropped 10.81% to $0.66. The stock currently has a resistance located at $0.95. CHIO is an insurance services web portals. Asia Cork (AKRK), a manufacturer of cork-based building materials, dropped back from previous gains due to positive 2009 financial results. The stock decreased $0.04 or 7.02% with light volume. Shares of China Advanced Construction Materials Group (CADC) continues the downward trend, shedding 4.47%, The stock has a support located at $4.50. China Biologic Products (CBPO) fall back from previous gains and slipped 2.57% for the day. The stock has been bouncing up and down in a range of $10.50 to $11.50 for the past three three weeks. CBPO is a plasma-based biopharmaceutical company.

E-House (EJ), a provider of real estate services in China, dived 7.05% on more than two times the average trading volume. The stock was closed at way blow its 50-day and 200-day moving averages. China Housing and Land Development (CHLN) ended at $3.55 with a loss of 4.31%. CHLN is a developer of residential and commercial properties in northwest China. Xinyuan Real Estate (XIN), a residential real estate developer with a focus on high growth strategic Tier II Cities in China, fell 3.31% to close at $3.80.

Among other laggards of the day, China-Biotics (CHBT) had the second day high-volume loss, closing below the rising 50-day moving average. The stock ended at $16.27, or 5.74% lower. CHBT currently has a support at 200-day moving average of $14.54. Shares of Origin Agritech (SEED) have decreased for three days in a row, shedding 5.58% at $9.31, below 50-day moving average. The stock has been moving around its 50-day moving average for the past couple weeks. Shares of Ctrip.com International (CTRP) gave up previous gains and broke below the support at 50-day moving average, down 5.02% on high volume. CTRP is a provider of travel services.

Among the big upside movers of the day, China INSOnline Corp. (CHIO), as the best performer last week, continues its upward momentum. Shares of the company closed at $0.74 with a gain of 15.63% on nearly four times the average trading volume, or 12.93% of the float. China INSOnline is an insurance agency, offering automobile, property and life insurance services through its web portal. 3SBio (SSRX) slightly jumped back from previous losses, rising 3.59% to close at $10.38 on light volume of 211,000 shares, less than 2% of the float. This is a thin volume stock with a 3-month average trading volume of only 85,000 shares. China Pharma Holdings (CPHI) climbed back from a previous low and closed above the 200-day moving average, ending at $3.21 with a small gain of 2.56%.

China 3C Group (CHCG) climbed back from last Friday’s dip due to disappointing earnings results, ending at $0.44 or 4.76% higher. The stock has a solid resistance level at its 50-day moving average. Last Thursday, April 15, 2010, the company filed its 10-K. The report shows that net sales for 2009 decreased 32.88% to $208 million year-over-year. The decrease was attributed to the closing of 101 stores in 2009 and the negative effect of global economic slowdown. Net loss for 2009 was $(1.21) million compared to a net income of $26.83 million for 2008. China 3C Group is a wholesale distributor and retailer of 3C merchandise.

SinoHub (SIHI) today announced that its new 77,500 sq. ft mobile phone manufacturing facility has commenced operation. It also received new orders for 61,000 custom, private label mobile phones from four separate customers. The new mobile phone facility has annual output capacity of approximately 5.4 million handsets, or 450,000 handsets per month based on 12 assembly lines. The company expects to reach full capacity utilization, or over 75,000 handsets per month, on the initial two assembly lines by June 2010 to produce mobile phones for developing countries. The positive news helped the stock rally 2.75% to close at $2.99.

As the best performer of 100 China Stock Index, Asia Cork (AKRK) announced its 2009 financial results on Thursday and its shares skyrocketed 23.89% for the week. AKRK hit a high of $0.61 and closed at $0.57 in the end of the week. The company reported revenues for 2009 full year increased 14% to $24.4 million and net income rose 22% to $4.4 million year-over-year. Diluted earnings per share were $0.09 compared to $0.08 last year. The stock was traded in a 52-week range of $0.10 and $1.01. Asia Cork is a manufacturer of cork-based building materials.

Shares of China INSOnline (CHIO) broke through the 100-day moving average and closed at $0.64 in Friday’s session, up 17.84% for the week. CHIO is a small cap licensed insurance agency, offering automobile, property and life insurance services through its web portal. The huge surge was partially attributed to a positive commentary issued by SmarTrend, stating that China INSOnline has an operating margin of 68.6% on trailing 12 months sales of $17.7 million and sales growth of 30.9%. The stock was traded in a 52-week range of $0.40 and $2.17.

Shares of Biostar Pharmaceuticals (BSPM) have been closed above $4.00 for 6 consecutive days with the hope of potential NASDAQ uplisting. The stock set a record 52-week high of $4.92 on Thursday and slightly pulled back to close at $4.68 on Friday. BSPM increased 14.43% for the week on average volume of 556,000 shares, three times the regular trading volume. Synutra International (SYUT) recovered from previous losses, closing back above $23 level. SYUT is a thin volume stock with a 3-month average trading volume of 33,000 shares, representing only 0.2% of the float. Syuntra is an infant formula company and a manufacturer of nutritional products for infants, children and adults in China.

China Kangtai Cactus Bio (CKGT) jumped 9.58% this week with the help of its impressive 2009 earnings release. The company reported revenues for 2009 increasing 31% and an adjusted net income surging 47.36% year-over-year. Net income was $480,000 compared to $5.7 million in 2008. According to the release, the decrease in net income was caused mainly by the non-cash expense from revaluation of Series A Preferred Stock and A, B, C, and D warrants with characteristics of liabilities at fair values. Net cash provided by operating activities was $7.7 million in the end of fiscal year 2009. CKGT has a 52-week range between $0.35 and $3.00.

Songzai International Holdings Group (SGZH), engaged in coal business, dived 34.21% following a From 10-K annual report. The report showed positive results for the 2009 full year but a dull output for the 2009 fourth quarter. The company is lack of investor awareness and its stock has average trading volume of only 20,000 shares, less than 1% of the float. In the middle of the March, Songzai received the resignation of CFO and appointed Ms. Li, financial controller of a subsidiary of the company, as the interim CFO. China Vesting announced the removal of Songzai International on Friday as the company does not meet the requirements of China Vesting’s China Dragon Undervalued Index.

Shares of China Agritech (CAGC) broke below the support at the 50-day moving average at the beginning of the week and continued to fall since then, ending $4.81, or 21.12% lower on strong volume. The huge sell-off was triggered by a commentary implying that though China Agritech has a great growth potential, the valuation was too high. The stock has a support level located at $16.50.

Shares of China Armco Metals (CNAM) experienced a loss of 11.51% this week and ended at $6.92, closely above the 50-day moving average. On Thursday, the company filed a Form 8-K disclosing that its CEO exercised an option to purchase 1 million shares of its common stock at an exercise price of $5.00 per share. Additionally, from March 2010 through April 14, 2010, investors exercised warrants to purchase 1.33 million shares of the common stock at an exercise price of $5.00. In total, the company received $11.69 million in proceeds from these exercises and issued a total of 2.41 million shares, including 76,000 shares issued in connection with the cashless exercise of warrants.

Melco Crown Entertainment Limited (MPEL) fall 11.38% for the week, closing at $4.75, below the 20-day moving average. The dip was mostly caused by a downgrade at Credit Suisse and a disappointing preliminary 2010 first quarter results issued by Melco’s rival, MGM Mirage. China Advanced Construction Materials Group (CADC) gave back the previous gains, closing at $5.03 with a loss of 10.50%.

China INSOnline Corp. (CHIO) has another huge gain today, up 12.28% on nearly three times the average trading volume. The stock closed at $0.64 and broke above its 100-day moving average, suggesting a bullish sign. The increases are partially attributed to a positive commentary issued by SmarTrend, stating that China INSOnline has an operating margin of 68.6% on trailing 12 months sales of $17.7 million and sales growth of 30.9%. Asia Cork (AKRK) surged 5.54% following an earnings release. Yesterday, the company announced revenues for full year 2009 increased 14% to $24.4 million year-over-year. Net income rose 22% to $3.3 million, or $0.09 per diluted share. The company did not provide guidance for 2010. AKRK jumped 17.02% on Wednesday when the company filed 10-K with SEC and slightly pulled back 1.82% in yesterday’s session. The stock has a resistance level located at $0.60.

Shares of QKL Stores (QKLS) climbed back from yesterday’s loss and closed back above the 50-day moving average at $6.02, or 3.61% higher. This is a relatively thin volume stock with a 3-month average trading volume of 173,000 shares. QKL Stores is a regional supermarket chain in northeastern China, announcing an update to its 2010 store opening plan this Tuesday. Two new supermarkets were opened in the 2010 first quarter and one department store was opened during the first week of April bringing the total number of tore locations to 39. The company expects to have a minimum of at least 56 locations by year end 2010.

Shares of China Unicom Hong Kong (CHU) climbed back above the 50-day moving average and closed at $11.74 with a gain of 2.35% on nearly two times the average trading volume. CHU was traded with a 52-week range between $10.34 and $15.95. China Unicom Hong Kong is one of the big three Chinese carriers. AsiaInfo Holdings (ASIA) recovered from previous loss, adding 1.59%. The company yesterday announced that it will report its first quarter 2010 earnings results on Monday, May 3, 2010. Analysts estimate revenues for the 2010 first quarter of $62.84 million and an EPS of $0.29, representing growth of 31.9% and 81.25% year-over-year respectively. ASIA currently has a support at its rising 50-day moving average and a resistance at $29.8.

Shares of Songzai International Holding Group (SGZH) continues to fall, dipping 11.76% on more than two times the regular trading volume following the 10-K. The Form 10-K, filed with SEC yesterday, showed a positive growth for full year 2009 but disappointing results for the 2009 fourth quarter. By subtracting the results for the previous three quarters from the results for the full year 2009, the company had its revenues decreasing 24.1% to $10.79 million for the 2009 fourth quarter year-over-year. Net income plunged 77.5% to $0.94 million. In the 10-K, Songzai itself disclose neither results for the 2009 fourth quarter nor guidance for the current year. Prior to the 10-K, the company’s Chief Financial Officer resigned on March 17, 2010. Looking at Songzai International’s website, I realized that Songzai International is lack of communication with its investors as the Investor Relations section was not updated since 2008. The company also never issues any press release. Based on the reasons above, China Vesting today announced the removal of Shongzai International Holding Group from the China Dragon Undervalued Index.

Shares of CNinsure Inc (CISG) pulled back from previous breakout, down 9.79% to close at $25.70 as profit taking occurs. Total volume traded today accounted three times the regular trading volume. Shares of Solarfun Power Holdings (SOLF) also gave back previous gains, dropping 9.64% on strong volume of 3.4 million shares, representing a 11.76% of the float. Yayi International (YYIN) shares decreased from a two-day rally, down 8.47% on light volume. The stock has a solid resistance level located at $3.00. On Wednesday, Yayi announced guidance for fiscal year 2010 with increased sales contracts value. The company expects net sales to be in the range of $58.6 million to $65.9 million. LDK Solar (LDK) came back from yesterday’s huge gain due to new contract, descending 7.95% on strong volume. The stock closed at $7.76, below its 50-day moving average.

China Kangtai Cactus (CKGT) today announced positive 2009 earnings results, which helped its shares jump 11.11% on nearly four times the regular trading volume. For the 2009 fiscal year, revenues increased 31% to $26.5 million year-over-year. Net income was $480,000, compared to $5.7 million in 2008. The decrease was caused mainly by the non-cash expense from revaluation of Series A Preferred Stock and A, B, C, and D warrants. Excluding this expense, the company’s net income is $8.4 million, or $0.43 per diluted share. In the end of fiscal year 2009, the company reported cash and cash equivalents of $2.9 million. Net cash provided by operating activities was $7.7 million. For the fiscal year 2010, the company targets revenue to be nearly $35 million, an increase of 30% year-over-year. China Kangtai Cactus is a manufacturer of cactus-based products.

Shares of China INSOnline (CHIO), a Chinese insurance broker, have been bouncing around its 50-day moving average for several weeks. The stock climbed back to above its 50-day moving average in today’s session and closed at $0.57, or 7.55% higher. Shares of Yucheng Technologies Limited (YTEC) climbed back above $4 level and hit a high of $4.19 on 10% less than average trading volume. At the closing bell, YTEC ended at $4.12 with a gain of 5.64%. The stock currently has a resistance level located at $4.35. Yucheng Technology is a provider of IT solution to China’s banking industry.

LDK Solar (LDK) rocketed 6.44% on new deal, moving straight through its resistance at 200-moving average of $8.05 and close at nearly the high of $8.53 on heavy underlying volume. The company today before the market opened announced that it has signed a contract to supply solar modules to Germany-based Phoenix Solar AG. According to the release, LDK will deliver approximately 20 megawatts of solar modules during the second calendar quarter of 2010.

Shares of Songzai International Holding Group (SGZH), engaged in the coal business, today nosedived -$2.45 or -24.26% on disappointing 2009 fourth quarter earnings results. For the 2009 fiscal year, revenues increased 14% to $65 million and net income surged 15% to $25.09 million. According to the company’s 10-K, the increase in net income is mainly attributed to the significant increase in the average selling price of coal. However, for the 2009 fourth quarter revenues decreased 24.1% to $10.79 million and net income plunged 77.5% to $0.94 million year-over-year. Total shares traded in today’s session accounted 194,000 shares, more than ten times the regular trade volume. The company is lack of communication with investors.

Shares of China Shenghuo Pharmaceutical Holdings (KUN) gave back most of the gains from yesterday due to a positive 2009 earnings release. KUN closed at $0.83 with a loss of 12.63% on light volume. The stock currently has a support level at its 50-day moving average. Shares of China Mass Media (CMM), an independent television advertising company, too gave up previous gains and further decreased by 5.57%, closing at $2.88. Today’s trading volume was relatively light. CMM is currently traded below both 50-day and 200-day moving averages.

Melco Crown Entertainment (MPEL) fell 5.44% on strong volume following a downgrade from Outperform to Neutral at Credit Suisse. Shares of the company closed at $4.87, breaking below the 200-day moving average. The drop was also caused by the disappointing preliminary 2010 first quarter results issued by Melco’s rival, MGM Mirage. Shares of E-House Holdings (EJ) pulled back 5.28% from previous high and closed at $19.19, closely above its 200-day moving average. The stock currently has a support level located at $18.76.

Taiwan Semiconductor Manufacturing (TSM), the world’s top contract chipmaker, soared 5.44% on heavy underlying volume. The company yesterday announced it will skip the 22nm manufacturing process node and move directly to a 20nm technology. Dr. Chiang, TSMC Senior vice president, Research & Development, said “the move to 20nm creates a superior gate density and chip performance to cost ratio than a 22nm process technology and makes it a more viable platform for advanced technology designers.” TSM also provided a positive outlook for global chip sales growth in 2010 and 2011, according to a release issued by Reuters.

Shares of Asia Cork (AKRK) raised 17.02% for the day to close at $0.55 on triple its average trade volume, breaking through the previous resistance. The next resistance level would be located at $0.60. Asia Cork is engaged in developing, manufacturing and marketing of cork wood floor, wall, and decorating materials. China Shenghuo Pharmaceutical (KUN) today after the market closed announced financial results and shares rocketed 15.85% on 92,000 shares, 2% of the float. For the 2009 fourth quarter, total revenues increased 43.8% year-over-year to $ 0.5 to $10.5 million. Net income surged 108.3% to $0.2 million. For the 2009 full year, revenues were $36.0 million, an increase of 25.5%. Net loss was $6.6 million, or $0.33 loss per share compared to a net loss of $4.6 million or $0.24 loss per share last year. According to the release, the sales growth for the fourth quarter was mainly due to a new sales policy that has stimulated the enthusiasm of sales representatives and resulted in the increased sales of products. KUN is a manufacturer of pharmaceutical, nutritional supplement and cosmetic products.

Biostar Pharmaceuticals (BSPM) remains explosive. Shares advanced 6.24% and reached a resistance of $4.60. If the stock can break above $4.60 in the following sessions, the next resistance is located at $4.75. The continuous rise is partially contributed by articles issued at TheStreet.com regarding Biostar Pharmaceuticals having potential to uplist to Nasdaq. Changyou.com (CYOU), a Chinese online gaming stock, broke through resistance at 50-day moving average to close at $33 level, a gain of 5.66%. The company announced that it is going to report its first quarter 2010 financial results on April 26, 2010. Analysts were forecasting earnings of $0.73 per share and revenues of $72.33 million for the quarter.

China Agritech (CAGC) continues to be on the top losers list. The stock plunged 8.21% or -$1.70 on strong volume of 3.02 million shares, more than 45% of the float. The stock was closed at $19.00, well below its rising 50-day moving average. Shares of Songzai International Holding Group (SGZH), a Chinese coal stock, have been volatile lately, moving down 3.81% at $10.10. This is a relatively thin volume stock with a 3-month average volume of only 15,000 shares. In the end of last month, Songzai international filed a late filing notification on Form 10-K for the 2009 fiscal year. The reason for the delay was reported as that the company did not receive a final report from its mining and geologic consultant with adequate time to complete the report.

Shares of Melco Crown Entertainment (MPEL) gave back the previous gains, shedding 2.28% on average trading volume. China Advanced Construction Materials Group (CADC) shares went down 2.21% accompanied by light volume. The stock is recently traded in a range of $4.75 and $5.75. Shares of AgFeed Industries (FEED), engaging in the animal nutrition and commercial hog production business, pulled back from previous gains and close at $4.63 or 2.11% lower. The company today announced that it has agreed to invest in a hog production project in conjunction with Xinyu City in Jiangxi Province. The initial phase of the project will encompasses an investment of $18 million and will begin in May 2010. The Xinyu complex is expected to have annual production capacity of up to 600,000 hogs.

Biostar Pharmaceuticals (BSPM) advanced 5.87% to close at $4.33. The surge was partially due to a positive commentary, Finding Uplist Clues: Getting in Before Prices Pop, published by Rick Pearson on TheStreet.com. BSPM currently has a resistance located at $4.49. Orient Paper (ONP) shares continued to explode higher after the company announced an approximately $27.8 million acquisition of corrugating medium paper production line with an annual production capacity of 360,000 tons. The stock broke above its 50-day moving average and reached a high of $10 level, closing at $9.98 with a gain of 5.83%.

Given the excessive sell-off for the last two weeks, China Organic Agricultural (CNOA) became oversold and slightly bounced back today. The stock climbed 4.23% to close at $0.74, below its both 50-day and 200-day moving averages. ReneSola (SOL), a Chinese solar stock, rebounded from last Friday’s loss and closed at $6.69 with a gain of 4.04%. The stock has a resistance located at $7.00.

Shares of China Agritech (CAGC), a Chinese fertilizer stock, fell below the 50-day moving average of $23.40 to close at $20.70 on strong volume of 2.07 million shares, over 30% of the float. The huge drop could be partially due to an article, 2010 Outlook: One Quarter in the Books, published by Eric Jackson on TheStreet.com. Eric commented that “ I like the company and its Chinese organic fertilizer business. The problem is valuation. It’s a bit frothy right now. I would wait before getting in.” The stock recently hit a high of $30.75 in the beginning of March.

L & L International (LLEN), a Chinese coal stock, continues to give back the previous gains, closing with another loss of 8.23% on strong volume. LLEN reached a record high of $14.91 last week. China Armco Metals (CNAM) has dropped for five days in a row, ending at $7.39 with a loss of 5.50%. The stock currently has a support located at $7.00. China INSOnline (CHIO), a Chinese insurance broker stock, was down 4.07% but only $0.02 in terms of dollar. The stock has been bouncing around its 50-day moving average for the past few weeks. CHIO currently has a support of $0.50 and a resistance of $0.61. New Energy Systems Group (NEWN), a Chinese battery technology stock, pulled back from yesterday’s gain, shedding 3.91%. The stock has a solid resistance level located at $8.50.

Trina Solar (TSL), a large cap Chinese solar stock, rebounded from last Friday’s loss and increased 5.66% on average volume following a news, China's Solar Firms Get A Boost, published by Peter C. Beller on Forbes.com. Peter stated that the Chinese Government is extending billions in loans to domestic solar companies, which will likely help the companies move from pure manufacturing operations into what many perceive to be a more lucrative long-term strategy. According to the news, Trina Solar will get a $4 billion in funding. Shares of China Architectural Engineering (CAEI) were oversold and bounced back today with a gain of 5.50%. The stock has a solid support level at its 50-day moving average. China Advanced Construction Materials (CADC) shares surged 5.05%, breaking above the rising 200-day moving average.

Orient Paper (ONP), a small cap Chinese consumer product stock, today announced that it entered into a definitive equipment purchase agreement on April 9, 2010 with Henan Qinyang First Paper Machine Limited to purchase a corrugating medium paper product line with an annual production capacity of 360,000 tons for approximately $27.8 million. CEO of the company claimed that, “With the additional 360,000 tons of production capacity, we are set to expand our market share in northern China’s rapidly growing paper industry”. This positive announcement helped the stock edge up 4.20% on nearly double its average trading volume.

L & L International (LLEN), operating coal businesses in China, slightly pulled back 5.42% today after rising for over 50% since the company announced its impressive earnings. The drop is mostly of a profit taking indication. Telestone Technologies (TSTC) had dropped three days in a row from a previous rally, ending at $14.07 with a loss of 4.29%. Total shares traded today accounted 711,000 shares, representing a 10.64% of the float. TSTC has a support located at $14.00. Telestone is a developer and provider of wireless communication local access network solutions.

Shares of China Armco Metals (CNAM) today broke support at $8.00 and closed at $7.82 with a loss of 4.17%. The stock has been descending for the past few days. The next support is located at $7.60. Perfect World (PWRD), a large cap Chinese online gaming stock, had another loss from last week’s rally, shedding 3.38%. The stock is currently trading below its both 50-day and 200-day moving averages. China Housing and Land Development (CHLN), a Chinese real estate stock, reported preliminary contract sales results for its 2010 first quarter last Tuesday, April 6, 2010. Contract sales for the first quarter totaled $42.3 million compared to $42.5 million for 2009 fourth quarter and $15.6 million for the 2009 first quarter. CHLN was up 4.46% on the day when the announcement was released, but gradually pulled back, ending with a loss of 3.38% in today’s session.

In terms of percentage, Asia Cork (AKRK) has the best performance for the week. Shares of the company surged 17.70% on Tuesday, pulled back 14.53% on Wednesday, and further increased by 17.00% in the end of the week. However, these changes were accompanied by light volume. The average trading volume for the week is approximately 10,600 shares, 35% less than the stock’s 3-month average trading volume. Asia Cork delays filling its annual report on Form 10-K ended December 31, 2009. Among other top gainers for the week, oversold Yayi International (YYIN) gradually climbed back from huge losses last week caused by 2010 first quarter fiscal year earnings results. Shares closed at $2.75 with a total gain of 14.58% for the week. YYIN currently has a resistance level located at $3.00.

Biostar Pharmaceuticals (BSPM) this Monday reported its fourth quarter results with net sales increasing 69.3% to $17.1 million and net income decreasing 34.6% to $1.7 million. Shares of the company dropped 4.68% on Monday, jumped back 4.29% on Wednesday, and surged 5.32% on Friday thanks to a positive commentary, Biostar: Best Small-Cap Pharma Stock, published by Rick Pearson at TheStreet.com. BSPM currently has a resistance level located at $4.24.

Yuhe International (YUII) shares recovered from previous losses caused by dull earnings results, gaining 12.10% for the week. The stock broke through its 50-day moving average and closed back at $10.00 level. YUII’s next resistance is located at $10.40. China Kangtai Cactus Biotech (CKGT) announced on Monday that it has signed a three-year marketing and sales agreement with Yongkangmen Health and Drug Chain Store Group. Yongkangmen has controlling ownership in more than 3,000 drugstores throughout China. Shares of China Kangtai Cactus Biotech showed upward trend for the week with a total gain of 11.87%. The stock broke through the 50-day moving average on Wednesday and closed at $2.45 in the end of the week. If CKGT can further break through its current resistance level of $2.45 in the upcoming session, the next resistance would be located at $2.58.

Among the top losers of the week, 3SBio (SSRX) dropped below its 50-day moving average on Wednesday and further broke below its 200-day moving average on Thursday. Total loss for the week accounted 10.37% . SSRX has a support level at $9.84. Shares of China Automotive Systems (CAAS) pulled back from a previous high attributed by strong 2009 fourth quarter earnings with a total loss of 6.64%. Shares halted the downward trend and slightly bounced back with a small gain of 2.31% in the end of the week. CAAS has a solid support level at its rising 50-day moving average.

Ctrip.com International (CTRP) gave up more than half of the previous gains, closing at $37.96 with a loss of 5.83% for the week. The stock has a strong support level at its rising 50-day moving average. The drop occurred this week is more of a technical correction. Shares of AirMedia Group (AMCN) pulled backed from last week’s rally and edged down 5.35% to close at $6.01 per share. The stock has support levels located at $6.01 and $5.62. China Agritech (CAGC) decreased by 5.13% for the week to close at $1.25 right above its solid support at rising 50-day moving average, suggesting a bullish momentum might occur in the following trading sessions.

In the following weeks, U.S. listed Chinese stocks investors should really pay attention to any report or news regarding Yuan revaluation. According to the article, China Seems Set to Loosen Hold on Its Currency, China is preparing to announce that it will allow its currency to strengthen slightly and vary more from day to day. With the Yuan appreciation, U.S. listed Chinese companies could boost in value by taking advantage of earning profits in Yuan and reporting financials in U.S. dollars.

Lihua International (LIWA) today announced that the underwriters of its public offering have exercised their over-allotment option, resulting in the issuance of an additional 559,006 common shares. The option was granted in connection with the public offering of 3.7 million common shares at a price of $8.05 per share, expected to close on April 14, 2010. Total gross proceeds of $34.5 million will be used for the construction of a new smelting facility and general working capital purpose. The stock bounced back from previous losses and closed at today’s high of $9.24, breaking above its 50-day moving average, with a gain of 14.50%. Total volume traded today accounted 3.5 million, nearly tenfold its regular trading volume, or approximately 41% of the float. LIWA has a resistance level located at $9.32.

Asia Cork (AKRK) shares have been volatile recently. The stock rebounded 17.00% in today’s trading following a 14.53% huge drop yesterday. This is a thin volume stock with a 3-month average trading volume of only 17,000 shares. Shares of 51job (JOBS) broke through the recent resistance and jumped 6.11% on slightly more than the recent average volume.

Chinese solar stocks in the China 100 Stock Index overall had a tough day as oil prices fell for a third day in a row, dipping below $85 a barrel. Trina Solar (TSL) gave back its previous gain and down 5.25% on average volume. Following TSL, ReneSola (SOL) too pulled back from recent surge. Shares hit a high of $7.00 but ended at $6.42 by the close with a loss of 5.03% on recent average trading volume. Shares of Solarfun Power Holdings (SOLF) set a high of $9.00 amid trading but edged down 4.83% before the closing bell on recent average volume. TSL, SOL, and SOLF are currently trading above their 50-day and 200-day moving averages. LDK Solar (LDK) slightly gave back yesterday’s huge gain, down 3.93% to close at $7.33 on slightly above its average trading volume.

Among other Chinese solar stocks in the Index with relatively smaller loss in terms of percentage, Suntech Power Holdings (STP) shares were down 2.33%, Ja Solar Holdings (JASO) shares dropped 2.27%, and Yingli Green Energy Holdings (YGE) slipped 0.40%. As one of the top losers of the day, SinoHub (SIHI) pulled back from yesterday’s rally, ending 3.55% lower to close back at $2.99. This is a relatively thin volume with a recent trading volume of 100,000 shares. SIHI has a support level located at $2.90.

Among today’s top gainers, LDK Solar (LDK) continues its upward momentum on strong volume of 5.16 million shares, representing a 9% of the float. Despite LDK announced lower than expected financial results sending the shares down last week, investors still show confidence for the company possibly due to positive outlook for overall solar energy market. Shares of the company advanced 8.23% in today’s session, closing at $7.63. The stock’s next resistance is located at $7.90.

Fuqi International (FUQI) shares increased 7.70% to close at $12.03 on average volume following positive comments by Mr. Yu Kwai Chong, Chairman and CEO. After the market closed yesterday, the company issued updates relating to its preliminary fourth quarter 2009 financial results and potential restatements on previously issued quarterly financial statements. Mr. Chong stated that the company has recruited an additional internal audit professionals as well as an external Sarbanes-Oxley 404 consultant to review and provide recommendations on company’s reporting policies and procedures. The company intends to file its 2009 Form 10-K in the coming weeks, including the restatement impact of the first three quarters of 2009. For the year 2010 outlook, Mr. Chong said “general order demand in both our wholesale and retail businesses remains solid for 2010 and our growth plans remain intact. We expect 2010 will continue to be a growth year as a greater emphasis on retail growth, maximizing gross margin and minimizing operating expenses.” According to the press release, Mr. Chan still owns his entire FUQI stock position since the company went public in 2007. FUQI hit a low of $9.70 on March 22, 2010 since the news on accounting irregularities came out.

Shares of Yuhe International (YUII) climbed back from previous losses due to dull earnings release and closed back at $10 level, breaking above the 50-day moving average. Last Wednesday, the company announced its fourth quarter and fiscal year 2009 results. For the fourth quarter, revenues decreased 27.4% to $13.3 million compared to the same period a year ago. Net income was down 52.7$ to $3.64 million, or $0.23 per diluted share.

Yayi International (YYIN) gradually climbed back from previous losses caused by weak 2010 first quarter fiscal year earnings results. Shares closed at $2.70 with a gain of 4.65% on light volume. The stock’s resistances are located at $2.75 and $3.00. Shares of Focus Media Holding (FMCN) today bounced back at $17.83 with a gain of 4.09%.

Asia Cork (AKRK) is the biggest loser of the day in terms of percentages, felling 14.53% on only 2,100 shares. The company delays filling its annual report on Form 10-K ended December 31, 2009. China Automotive Systems (CAAS) pulled back from previous high attributed by strong 2009 fourth quarter earnings results. The stock shed 4.89% to close at $21.18, closely above the solid support level at its 50-day moving average. Brean Murray today initiated coverage on China Automotive Systems with a HOLD rating.

China INSOnline (CHIO) today dropped 4.35% on lower than average volume. The stock has been bouncing around its 50-day moving average for the past two weeks with possible support at $0.52 and resistance at $0.61. CHIO is currently traded way below its 200-day moving average. Shares of China Armco Metals (CNAM) lost 2.94% to close at $8.25 on average volume. The stock has a support level located at $8.00. China Advanced Construction Materials (CADC) halted its upward trend and slightly fell 2.84%. This is a thin volume stock with a 3-month average trading volume of 100,582 shares, representing less than 2% of the float.

JA Solar Holdings (JASO) announced raised shipment guidance for the first quarter 2010 and its shares surged 9.70% to close at $9.22 per share. Total shares traded in the end of day counted 40.63 million shares, nearly 35% of the float. The company projects first quarter shipment to exceed 265MW, above the high-end of its previous guidance of 215MW to 225MW given on February 11, 2010, based on current customer orders and product deliveries. Since breaking above its 50-day moving average on March 26, 2010, the stock has advanced 24.15% with a market capitalization up approximately $196 million. JASO are traded with a 52-week range between $2.80 and $6.95. Following JA Solar Holdings, Solarfun Power Holdings (SOLF) jumped 7.97% and closed at $8.58, breaking above a recent resistance of $8.00. Volume traded today totaled 4.5 million, 15.55% of the float. Since the stock advanced above its 50-day moving average on March 29, 2010, it has increased by 13.19% with a market capitalization adding 57.60 million.

ReneSola (SOL), another outstanding Chinese solar stock of the day, leaped 7.54% and reached a 36-week high of $6.58. The stock is now trading well above its rising 50-day moving average and its 200-day moving average. In the recent two weeks, SOL has roared up 31.2% with a market capitalization increasing by more than $130 million. The stock’s next resistance level would be at $6.73. Suntech Power Holdings (STP) zoomed up 6.36% to $14.89 on high volume of 7.10 million shares. The stock has a resistance level at its 200-day moving average.

Perfect World (PWRD), an online game developer in China, became oversold following a excessive loss in last few days and rebounded 5.59% in today’s trading. The stock reached a high of $38.39 and closed at $38.33 nearly its solid resistance level at 50-day moving average.

China Armco Metals (CNAM) today announced its wholly owned subsidiary, Armco & Metawise, has established a strategic partnership with TCG Commodity Management to source a number of high demand minerals as part of the company’s recent strategy to seek longer tem supply contracts for distribution in China. Shares of the company gave back yesterday’s gain, closing back to $8.50. CNAM recently is trading in a range between $8.00 and $10.00. Shares of China Agritech (CAGC) fell back from Monday’s rally with a loss of 5.12% on average volume, representing a 26.30% of the float. The stock has a solid support level at its rising 50-day moving average.

Shares of 3SBio (SSRX) broke below its 50-day moving average, down 5.03% on 88,000 volume, only 0.6% of the float. Shares of Synutra International (SYUT) came back from a new 52-week high of $23.77 set during yesterday’s session, closing at $22.28 with a loss of 3.88%. SYUT is a thin volume stock with a 3-month average trading volume of 33,000 shares, 0.23% of the float. The stock had a huge surge of 12.65% last Monday, closing at $22.53, on Roth Capital’s upgrade from Hold to Buy. Focus Media Holding (FMCN) gave back most of gains from last week and edged down 3.71% on less than average trading volume. The drop is more of a technical correction.

Yayi International gradually (YYIN) climbs back from a previous low of $2.13 due to weak 2010 first quarter fiscal year results. Shares closed at $2.58 with a gain of 7.50% on light volume. The stock’s resistance is located at $2.75 and $3.00. China TransInfo Technology (CTFO) started to recover from previous losses caused by unattractive outlook for current fiscal year. Shares have a gain of 5.56% on 324,000 shares, less than 4% of the float. China Armco Metals (CNAM) jumped back from previous losses, closing above $9.00 level with a gain of 5.74% on average volume. The company recently announced its 2009 financial results and 2010 guidance. Please see China Armco Reports 2009 Results and 2010 Guidance.

Sinovac Biotech (SVA), as the worst performer of the day, announced 2009 fourth quarter and full year financial results before the market opened. For the fourth quarter, sales increased 194% to $36.4 million and net income rose 275% to $8.9 million. Sales for the full year grew 81% to $84.2 million and net income increased 149% to $20.0 million. The company predicts total sales for the full year 2010 to be in the range of approximately $67.1 million to $72.5 million, indicating a growth rate of (13.89%) to (20.31%). According to the company, the negative growth for 2010 guidance partially due to a negative media report on improper storage of vaccines by a distributor in China’s Shanxi province. Though Sinovac Biotech was not involved with such events, the management believes that these issues may adversely impact the public’s perceptions of vaccine safety and thus may reduce vaccine administration by the Chinese government. Following the earnings release, Brean Murray downgraded Sinovac from Buy to Hold. Shares of the company have been showing downward trend recently and fell 5.22% in today’s session, reaching a 7-month low of $5.55. Total volume traded today were 2.48 million shares, 6.62% of the float.

China Shenghuo Pharmaceutical (KUN), engaged in manufacturing of pharmaceutical, nutritional supplement, and cosmetic products, is a thin volume stock with a 3-month average trading volume of 14,000 shares. The stock currently traded below its 50-day and 200-day moving averages and its 52- week range is $0.32-$1.25. KUN today slightly dropped 3.75% with light volume of 5,000 shares. China Shenghuo Pharmaceutical never issues press releases. Investors have to watch out when the filings come out. Last Wednesday, the company filed a Form 12b-25, a notification of late filing. KUN claimed that they are unable to file an annual report on Form 10-K in a timely manner due to a lack of sufficient financial resources to commence the preparation of financial statements for fiscal year 2009.

Tiens Biotech Group (TBV) continued to fall due to its weak 2009 financial results announced yesterday, ending with a loss of 3.69% on light volume. Following a big surge in anticipation of a good earnings release, SinoHub (SIHI) has been showing weakness since 2009 fourth quarter and full year financial results rolled out. SIHI has a 3-month average trading volume of 45,000 shares and a float of 13.63 million. The stock has a support level located at $2.75 per share. Shares of QKL Stores (QKLS) fell below its 50-day moving average with a loss of 2.63% following 2009 financial results. The stock has a support level at its rising 200-day moving average.

Shares of China Direct Industries, Inc. (CDII) today broke through 200-day moving average and jumped above the 50-day moving average. The stock closed at $1.69 with a gain of 6.29% on 435,000 shares, less than 2% of the float. The next resistance level could be $1.82. China Agritech Inc. (CAGC) rallied 5.96% from last Thursday’s drop due to earnings results, closing at $24.36 on average volume, a 33.47% of the float. CAGC has a solid support level at its rising 50-day moving average.

New Energy System Group (NEWN) had a huge gain today mostly driven by a positive article published by Rick Pearson at TheStreet.com, China New energy a Buy, Ignore the Math. Last Wednesday, March 31, 2010, New Energy System Group filed with the SEC for a 15-day extension of Form 10-K ended December 31, 2009. The company also reaffirms prior guidance for 2009 and 2010. Management of the company expects net income for full year 2009 to be between $5.3 and $6.0 million, implying a growth rate between 19.10% and 34.83% compared to last year. For full year 2010, net income was forecasted to be at least $15.6 million, or $1.23 per share, excluding acquisition related expenses, indicating a growth rate of at least 160%. NEWN is a relatively thin stock with a 3-month average volume of 84,000 shares. Shares leaped 5.81% today, closing at $7.83 above the 50-day moving average. Total volume traded in today’s session was 187,000 shares, 3.84% of the float.

Tiens Biotech Group USA Inc. (TBV) is the biggest loser of the day, following 2009 results. For the full year 2009, revenues decreased 19.68% to $62.0 million compared to the numbers from last year. Net income decreased 17.33% to $24.8 million or EPS of $0.33 per share. Shares fell 6.87% to close at $2.44, breaking below the 50-day moving average. Lihua International (LIWA) last Thursday surged on positive earnings results and started to decline when profit taking occurred. LIWA slumped 6.07% to close at $8.35, falling below its 50-day moving average. The stock currently has a support level of $8.00.

Xinyuan Real Estate Company (XIN) last Wednesday filed 2009 annual report on Form 20-F. Shares were down 5.91% though the results seem positive. The company reported that revenues increased by 25.9% to $449.0 million for the fiscal year of 2009 compared to last year. Net income increased by 279.66% to $42.4 million from a loss of -$23.6 million. Telestone Technologies (TSTC) had another loss after a major dip last Thursday, ending at $14.30 (-5.17%) on 1.31 million shares, representing approximately 20% of the float. TSTC has broken a support level of $16.04 and the next support could be $14.17.

Shares of Biostar Pharmaceuticals (BSPM) dropped below its support level at the 50-day moving average, ending 4.68% lower. The company today supplements its earlier 2009 earnings release and provides fourth quarter results. Since the company released its 2009 results, investors have been showing their concerns regarding the 2010 outlook in terms of shares outstanding and EPS. Biostar today published that net sales for the fourth quarter of 2009 increased by 69.3% to $17.1 million and net income decreased by 34.6% to $1.7 million.

Longtop Financial Technologies (LFT) reached a low at $30.22 this Monday following an 8-day continuous drop and became oversold. The stock started to rebound on Tuesday, advancing 13.00% with a close price at $3.93, above its 50-day moving average of $33.43. AirMedia Group (AMCN) last Thursday hit a new support at $5.81 and started to jump back since last Friday. Shares advanced 10.48% with total shares 1.11 million trading hands, representing a 4.76% of the float. Focus Media Holding (FMCN) this week showed upward momentum through Wednesday, but became overbought, slightly dropping 1.20% on Thursday. FMCN surged 7.00% for the week, closing at $18.04, and currently has a strong resistance located at $18.72.

L&L International Holdings (LLEN) rocketed 6.44% this week and set a fresh 52-week high of $12.63 this Tuesday. Since the company announced its impressive earnings results, LLEN has increased $3.34 or 37.57% with market capitalization adding $87 million. China Advanced Construction Materials (CADC) this week broke above both its 50-day and 200-day moving averages, up 6.11% for the week. CADC is a relatively thin volume stock with a 3-month average trading volume of 106,000 shares. On March 1, 2010, the company announced closing of its public offering of 2 million registered shares of common stock at a price of $4.60 per share. Roth Capital initiated coverage on China Advanced Construction Materials with a BUY rating on March 12, 2010. Following the announcement of closing a public offering, shares of the company reached a high of $5.69 on March 10, 2010 and gained 9.68% till end of this week.

Among big movers to the downside, A Power Energy Generation System (APWR), slumped 17.36% following lower than expected earnings results. Though the company reported increased revenues for the fourth quarter but the profit was decreased to a net loss of -$23.9 million from a net income of $10.0 million the same period a year ago. In the end of the week, APWR hit a 5-month low of $9.85 on nearly 3 times average trading volume. Total volume traded in two days after the earnings were released were 9.21 million shares, representing a 39.22% of the float. The stock’s support is currently located at $9.74. China Agritech (CAGC) also fell hard on earnings results, down 17.12% with a close price of $22.99 in the end of the week. Though the company had impressive revenues growth for the fourth quarter compared to the same period a year ago, the results were not this attractive comparing to the numbers of the previous quarter the same year—revenues and net income decreasing 23.4% and 226.9% respectively. Since the results were published, the stock has traded on 4.4 million shares, representing a 96.71% of the float. CAGC’s support is currently located at $22.20.

Telestone Technologies (TSTC) this Wednesday after the market closed released its positive 2009 fourth quarter and full year earnings but shares suffered a major pull back of 13.83%. TSTC closed at $15.08 per share in the end of the week, below its 50-day moving average, with trading volume of 2.98 million shares, representing a 45.56% of the float. The stock’s has a support located at $12.80. Shares of Rino International (RINO) dipped 9.60% for the week and most of the losses were driven by earnings results which were shy of analysts’ estimation. In the end of the week, RINO closed at $21.18, falling below its 50-day moving average of $21.95. The stock has a support of $20.27. For the fourth quarter, the company had revenues of $53.0 million versus consensus of $59.68 million, and EPS of $0.53 versus consensus of $0.55 per share. For the full year 2010, the company forecasts revenues to exceed $225 million versus analysts’ estimation on average of $241.43 million. China TransInfo Technology (CTFO) still suffered from an unattractive 2010 guidance this week with a loss of -8.36% for the week. Since the earnings and guidance were released, the stock has decreased by 19.42%. Shares are currently traded below both 50-day and 200-day moving averages. In the end of the week, CTFO closed at $6.47 per share and the stock has a support at $6.12.

China Advanced Construction Materials Group (CADC)

In connection with the private placement that CADC closed on June 11, 2008, the company and the investors entered into a Make Good Agreement whereby the shareholders agreed to transfer 3,500,000 shares of common stocks to the investors on a pro rata basis if the company could not meet certain performance targets:

1) At least $5,200,000 of after-tax net income for the fiscal year ended June 30, 2008;

2) At least $9,000,000 of after-tax net income for the fiscal year ended June 30, 2009;

3) At least $9,000,000 of after-tax net income for the fiscal year ended June 30, 2010.

China Valves Technology (CVVZ)

In connection with the private placement that CVVZ closed on August 26, 2008, the company and the investors entered into a Make Good Escrow Agreement whereby the shareholders agreed to transfer 25,166,064 shares of common stocks to the investors on a pro rata basis if the company could not meet certain performance targets:

1) At least $10,500,000 of after-tax net income for the fiscal year ended December 31, 2008;

2) At least $23,000,000 of after-tax net income or $0.369 of fully diluted EPS for the fiscal year ended December 31, 2009;

3) At leaset $31,000,000 of after-tax net income or $0.497 of fully diluted EPS for the fiscal year ended December 31 2010.

China Sky One Medical (CSKI)

In connection with the private placement that CSKI closed on February 21, 2008, the company and the investors entered into a Make Good Agreement whereby the shareholders agreed to transfer 3,000,000 shares of common stocks to the investors on a pro rata basis if the company could not meet certain performance targets:

1) At least $1.05 of fully diluted EPS for the fiscal year ended December 31, 2007;

2) At least $1.63 of fully diluted EPS for the fiscal year ended December 31, 2008.

Tianyin Pharmaceutical (TPI)

In connection with the private placement that TPI closed on January 25, 2008, the company and the investors entered into a Make Good Escrow Agreement whereby the shareholders agreed to transfer 2,410,283 shares of common stocks to the investors on a pro rata basis if the company could not meet certain performance targets:

1) At least $5,600,000 of Reported Net Income or $0.16 fully diluted EPS for the fiscal year ending June 30, 2008;

2) At least $7,200,000 of Reported Net Income or $0.20 fully diluted EPS for the fiscal year ending June 30, 2009.

Rino International (RINO)

In connection with the private placement that RINO closed n October 5, 2007, the company and the investors entered into a Make Good Agreement whereby the shareholders agreed to transfer 5,580,000 shares of common stocks to the investors on a pro rata basis if the company could not meet certain performance targets:

1) At least $16,000,000 of after tax net income for the fiscal year ending December 31, 2007;

2) At least $28,000,000 of after tax net income for the fiscal year ending December 31, 2008.

• On March 23, China Armco announced that Armco & Metawise (H.K.), Ltd., the Company's wholly owned subsidiary, has entered into a contract to purchase 749,000 metric tons of Brazilian manganese ore fines over the next 16 months which could result in sales of up to $180 million over the contract period based on current market prices for manganese ore of this type.
  
  
• On March 31, TheStreet.com provided coverage calling China Armco one of the Top 50 Most Undervalued Companies for 2010. "China Armco (CNAM) is a distributor of iron ore that is expanding into the scrap metal recycling industry. It has just built a factory that is expected to generate $400 million in revenue, depending on the current price of scrap steel. With expected margins of 8% to 12%, we can conservatively estimate at full capacity CNAM's net income to be 32 million. With a market cap of 87 million, the forward P/E is 2.72. The main risk with CNAM is whether it is able to reach full capacity; if that occurs, this company is a gem."
  
  
• Yesterday after the close China Armco Metals reported its full year 2009 results: Reported revenue was $86.9 million as compared to revenue of $55.4 million for the same period of 2008, an increase of 57%. For the year ended December 31, 2009 net income rose to $5.1 million as compared to $3.3 million in 2008, an increase of 55%.
  
  
• On a basic and diluted basis, earnings per share for the full year of 2009 were $0.51 per share based on 10.1 million weighted average common shares outstanding as compared to $0.44 per basic and diluted share in 2008 on 7.5 million weighted average common shares outstanding.
  
  

This morning China Armco Metals announced that revenues for the full year of 2010 should exceed $220 million with net income exceeding $12 million. Management sees its metal recycling operations being the largest driver of that growth beginning in the second quarter of 2010 and progressively accelerating in the second half of 2010. Management believes overall performance from its distribution business will also benefit from its recent sourcing contract of Brazilian manganese ore for distribution in China.

Let’s talk about the valuation issue, according to the company’s most recently filed annual report there were 11,727,724 shares outstanding. Assuming that shares are $9.00 the market capitalization would be $105,549,516.

If we take the 2010 earnings of $12 million the forward P/E is 8.795. In our opinion that is a more than reasonable valuation for a company that has will increase its revenue more than 150% and the net income 135%.

A forward P/E of 8.795 is relatively low and China Vesting believes a valuation of 15 times 2010 earnings will be achieved if the company is able to continue its growth. Since being a senior listed company on February 9, China Armco has been gaining credibility with Wall Street and within due time we believe shares of the CNAM should warrant a premium to its peers.

Shares of China INSOnline Corp (CHIO) climbed back from previous losses, adding 8.09% to close at $0.57. The stock traded on average volume of 412,000 shares, representing a 2.76% of the stock’s float. Longtop Financial Technologies (LFT) gradually jumped back from a previous low of $30.22 on Monday and advanced 6.02% to close at $34.15 per share, blasting through the 50-day moving average of $33.43, suggesting a more bullish move might occur. Yayi International (YYIN) slightly bounced back from losses due to weak first quarter fiscal year 2010 results with thin volume. Shares increased by 5.63% to close at $2.25 per share. AsiaInfo Holdings (ASIA) has been volatile recently, edging up 4.80% to close at $27.75 with below average trading volume.

Despite Telestone Technologies (TSTC) reporting positive 2009 fourth quarter and full year earnings after-market close yesterday, today they suffered a major pullback of 13.83%. The stock closed at $15.08, below its 50-day moving average of $17.34. For the fourth quarter, the company had revenues increasing 129.2% to $33.0 million and net income advancing 56.6% to $5.2 million. The fourth quarter 2009 EPS raised 56.3% to $0.50. For the full year 2009, revenues increased by 103.5% to $71.9 million which beats its guidance of $70.0 million. Net income added 77.9% to $12.5 million and EPS was $1.21 vs. $0.68. Telestone Technologies also provided 2010 revenue guidance of at least $108.0 million in revenue, a 50% growth rate year-over-year.

RINO International (RINO) yesterday after the market closed announced its 2009 fourth quarter and full year financial results, which were below analysts’ estimation. Shares were down 10.75% to close at $21.18 on nearly two times regular trading volume. For the fourth quarter, RINO reported that sales increased 29.9% to $53.0 million versus consensus of $59.68 million. Net income increased by 92.9% to $13.5 million with EPS of $0.53 versus EPS estimation of $0.55. For the full year, the company had sales increasing 27.7% to $192.6 million and net income increasing 47.3% to $57.3 million with EPS of $2.26. RINO predicts revenue to exceed $225 million for full year 2010 versus analysts’ estimation on average of $241.43 million, implying a growth rate of 16.8%. The stock broke below its 50-day moving average of $21.95 in today’s trading.

QKL Stores (QKLS) dropped on yesterday’s after-market announcement of late submission for annual report on Form 10-K for the full year 2009. Shares broke below both 50-day and 200-day moving averages, ending at $5.87 with a huge loss of 8.99%. Before the market closed in today’s session, the company announced full year 2009 financial results with revenues increasing 55% to $247.6 million while non-GAAP net income added 21% to $10.8 million. According to the QKL Store, net income for 2009 full year was $(24.6) million, including a one-time non-cash charge in 2009 of $35.5 million, decreasing 373.90% compared to $8.99 million last year. In the release, QKL Store did not provide revenue and net income guidance for the current fiscal year.

Biostar Pharmaceuticals (BSPM) today reported its fiscal 2009 financial results and its shares decreased 7.67% to close at $3.85, giving back all the speculative earning gains. The company’s 2009 revenues increased 57.2% to $53.3 million with net income increasing 56.7% to $10.5 million or diluted EPS of $0.32. For fiscal year 2010, the management of the company is raising revenues guidance from $80.0 million to $82.0 million with net income guidance from $18 million to $20 million. The revised guidance represents 53.8% growth in revenue and 90.5% growth in net income. Part of reason for today’s drop could be the company’s declaration of planning to issue an additional 6 million shares for raising capital, during the earnings conference call hosted this morning.

China Agritech (CAGC) shares dropped another 7.52% closing at $22.99 after the 2009 fourth quarter and fiscal year 2009 financial results were announced. The company reported that fourth quarter net revenues increased 149.7% to $20.7 million while net loss was $6.6 million, or EPS of $(0.39) compared to a net income of $1.1 million, or an EPS of $0.09 in the same period a year ago. Compared to the numbers in 2009 third quarter, CAGC had revenues decreasing 23.4% and net income down 226.9%. For the fiscal year 2009, net revenues increased 68.3% to $76.1 million while net income was $5.7 million or an EPS of $0.40 compared to last year where the net income was $8.6 million, or an EPS $0.70. The company’s 2010 guidance includes revenues of $114 million and non-GAAP net income of $23.5 million, indicating growth rates of 50% and 45% respectively.

Shares of Lihua International (LIWA), a copper replacement products manufacturer, rose +$0.33 or +3.73% after positive earnings were released. The company reported sales for the fourth quarter increased +367% year-over-year to $51.3 million while net income increased +275% to $7.3 million, or 0.30 per share. For full year 2009, sales surged +223% to $161.5 million and net income was $16.8 million, or $0.88 per share, an increase of +43% from last year. For full year 2010, Lihua is targeting gross profit of $47.1 million to $48.9 million, representing a growth rate of 30%-35%. The company also expects to have a non-GAAP net income of $34.6 million to $35.8 million, an increase of35-40% year-over-year. Gross profit and non-GAAP net income in 2009 were $36.2 million and $25.6 million, or $1.34 per diluted share. LIWA is a relatively thin volume stock with a 3-month average volume of 370,000 shares. At market close, shares were traded at 1.12 million shares, or 11.06% of the float.

A-Power Energy Generation System (APWR) slumped on below expected earnings results and a weak outlook, closing with a huge loss of $-1.34 or -11.12% and hitting a 5-month low of $10.35 in nearly 3 times average trading volume. Revenues in the 2009 fourth quarter were reported as $125.9 million, an increase of +54.6% from $81.4 million in the same period of 2008. Net loss for the fourth quarter was -$23.9 million, or -$0.69 per diluted share, compared to a net income of $10.0 million, or $0.30 per diluted share for the same quarter a year ago. For the full year 2009, net revenues increased +17.5% year-over-year to $311.3 million while net loss was -$16.7 million compared to a net income of $28.5 million in 2008. For fiscal year 2009, the company is expecting net sales to be approximately $380 million and net income to be $45 million, implying growth rates of 22.07% and 369.46%, respectively.

Universal Travel Group (UTA) today announced that the company has completed previously announced acquisitions and also provided guidance for full year 2010, sending shares up +$0.39 or +4.10%. As a result of the synergy from acquisitions, the company expects to achieve a growth rate range of 45% -55% in both revenues and net income. The stock broke above its 50-day moving average of $9.64. Orient Paper (ONP), as the biggest loser of the day, lost ground and dipped -$1.19 or -12.47% after the company announced pricing of a public offering of 3 million shares of common stock before the market opened. According to the release, Orient Paper has granted the underwriter a 45-day option to purchase up to an additional 450,000 shares of common stock. The shares were offered to the public at $8.25 per share. The offering is expected to settle and close on April 6, 2010. The net proceeds will be used for general corporate purposes.

Asia Cork (AKRK), a cork-based building materials manufacturer, today climbed back from yesterday’s loss with weak money flow, increasing +$0.02 or +5.12%. Asia Cork yesterday filed a Form 12b-25 notifying the company will be delayed in the filing of its 10-K. Tiens Biotech Group (TBV) gave back more than half of yesterday's gain as the company filed a notification that its annual report will be submitted late. Shares traded down -$0.25 or -8.47% and broke below its 50-day moving average of $2.52. China INSOnline (CHIO) today dropped -$0.05 or -8.13% on average volume. The drop is more of a technical correction. Shares of Focus Media Holdings (FMCN) recovered from previous losses, closing at $18.26 with a gain of +$0.89 or +5.12%. The stock hit a fresh 52-week high of $18.72 on March 17, 2010 due to its positive earnings results

Melco Crown Entertainment (MPEL) shares slightly regained lost ground, trading up +$0.22 or +4.80%. The company today filed its annual report on Form 20-F for fiscal year 2009. Net revenues in 2009 were reported $1.33 billion, a decreased of 5.9% from $1.42 billion for 2008. Net loss in 2009 was $308.5 million compared to a net loss of $2.5 million in 2008. The increased net loss was mostly due to rising total operating costs and expenses. According to the company, operating costs and expenses were $1.6 billion in 2009, an increase of $160 million or13.4% year-over-year, primarily related to commencement of operation at City of Dreams in June 2009. Melco Crown Entertainment commenced construction of the City of Dreams project in April, 2006. On June 1, 2009, City of Dreams opened featuring a 420,000 sq. ft casiono with approximately 600 hotel rooms.

SinoHub (SIHI) gave back more than half of yesterday’s speculative earning gains despite reporting positive financial results. Shares pulled back to $3.18 per share with a loss of -$0.32 or -9.14%. For the fourth quarter, total revenues advanced 61.6% to $42.8 million from $26.5 million in the same period of 2008 and net income increased 24.5% to $3.7 million from $2.9 million. Gross margin for the fourth quarter of 2009 decreased to 15% from 23.8%. Revenues for the 2009 full year were up 61.6% to $128.4 million from $79.5 million while net income increased 45.8% to $12.4 million from $8.5 million. Gross margins were decreased from 20.4% in 2008 to 17.4% in 2009. The company forecasts revenues of $180 million for fiscal year 2010, representing a growth rate of 40% over 2009. SIHI has a 3-month average volume of 40,000 shares and a float of 13.62 million shares. The stock was traded on 189,000 shares, representing only 1.39% of float.

China solar stocks slightly cooled down today. Trina Solar Limited (TSL) had a small gain of +$0.22 or 0.88% following a huge leap of +$2.99 or +13.08% in last two days while Solarfun Power (SOLF) edged up +$0.23 or +3.03% after a rise of +$0.85 or +12.33%. Bigger movers include JA Solar Holdings and LDK Solar. Shares of JA Solar (JASO), one of the top gainers of the day, has been trading positive for three days straight on heavy volume following Credit Suisse’s positive demand outlook. The stock closed at $5.95 per share, jumping +$0.47 or +8.58% . Its 52-week range is $2.80 to $6.95.

As one of the top losers, LDK Solar Co. (LDK) announced its lower than expected financial results for the 2009 fourth quarter today before the market opened. The stock went down with a huge loss of -$0.55 or -7.80% on heavy volume of 7.49 million shares. For the fourth quarter of 2009, LDK’s net sales decreased 28.60% year-over-year to $304.6 million. Its net loss was $7.3 million, or $0.07 per diluted ADS, compared to a net income of $29.4 million, or $0.27 per diluted ADS for the third quarter of fiscal 2009. LDK’s gross margin for the fourth quarter of 2009 fell to 9.9%, compared to 20.1% in the third quarter of 2009. According to the company, net income for the 2009 fourth quarter was $2.7 million, or $0.03 per diluted ADS excluding the one-time items of $10.0 million for the settlement of a class action lawsuit. For the first quarter of fiscal year 2010, LDK estimates its revenue to be in the range of $310 million to $330 million. Shares broke below 50-day moving average of $6.62 today.

Shares of Tiens Biotech Group (TBV), a nutrition supplement products manufacturer, climbed back from previous low, closing with a gain of +$0.35 or +13.46%. This is a thin volume stock with a 3-month average volume of 21,000 shares. Shares of China Pharma Holdings (CPHI), a pharmaceutical products manufacturer, jumped back for previous low and added +$0.22 or +7.07% with light volume of 96,000 shares traded. Following SinoHub's lead, China Armco Metals (CNAM), too surged ahead of earnings results, closing at $9.50 with a gain of +$0.85 or +9.83%, on 2.01 million shares. China Armco is scheduled to host a conference call at 4:30pm EDT, March 31, 2010, to discuss its financial results for the year ended December 31, 2009. Watch tomorrow when the announcement comes out.

Yayi International (YYIN) shares continue the downward trend, dropping -$0.14 or -6.17% on thin volume of 54,000 shares. Since the company announced its weak first quarter fiscal year 2010 results, the shares have decreased by -$0.89 or -29.47%. China TransInfo Technology (CTFO), public transportation information systems technology and solutions provider, had another major loss of -$0.41 or -5.81% on the unattractive 2010 guidance on above average trading volume. Melco Crown Entertainment (MPEL), operating casino gaming and entertainment resort in Macau, slightly pulled back from its previous gains, closing with a loss of -$0.23 or -4.78%. The drop is most likely a technical correction.

Asia Cork (AKRK), engaged in the development, manufacturing and marketing of cork-based building materials, today filed a Form 12b-25. The company will be delayed in the filing of its 10-K as the company is also preparing an amendment to its pending registration statement on Form S-1 in response to comments from the SEC. The Form S-1 was filed on February 12, 2010, containing one public offering prospectus and one resale prospectus. The company planned to have a public offering of units consisting of one share of common stock and one share of warrant and intent to use the net proceeds of the offering for general corporate purposes. Before the market closed, shares were down -$0.02 or -4.87%. AKRK is a thin volume stock with a 3-month average volume of 26,000 shares.

All of the solar companies in the China 100 Index were able to capitalize on the increased consumption projections and saw their share prices rise. Trina Solar (TSL), a photovoltaic [PV] modules provider in China, has been given outperform ratings by Wedbush and Credit Suisse. Shares of the company surged +$1.36 or +6.14% last Friday and another +$1.63 or +6.94% today on total 11.5 million shares traded. JA Solar (JASO) is a manufacturer of high-performance solar cells, jumping +$0.25 or +5.25% last Friday and +$0.47 or +9.38% on heavy volume of total 25.0 million shares traded in two days. Shares of Solarfun Power (SOLF), a vertically integrated manufacturer of silicon ingots, wafers and PV Cells and modules, surged +$0.23 or 3.42% last Friday and +$0.62 or +8.91% today on total 5.7 million shares.

Among other extremes of the day, shares of Synutra International (SYUT) rocketed +$2.53 or +12.65% and set a record high of $23.43 on Roth Capital's upgrade from Hold to Buy, making it the best performer both percentage and dollarwise. Synutra International is an infant formula company and a producer, marketer and seller of nutritional products for infants, children and adults. Shares of L&L International (LLEN) continue to show strength due to its impressive earnings growth, edging up +$1.16 or +11.23% with a fresh 52-week high of $11.66. The trading volume at today's session close was nearly 5 times the regular share volume, with a total of 1.64 million shares traded. Since third quarter fiscal year 2010 financial results rolled out, market cap of LLEN has increased approximately $68.01 million. L&L International, operating coal businesses in China, reported that 2010 third quarter revenues increased by 280% year-over-year to $37.9 million and quarterly net income increased by 440% year-over-year to $9.5 million. Shares of Agria Corporation (GRO), bounced back from previous session losses, gaining +$0.22 or +9.73% on 13.11% lower than the 3-month average volume of 313,705 shares. Agria, an agri-solutions provider, broke above its 200-day moving average of $2.43 before the day's session closed.

Shares of Yayi International (YYIN), a producer of premium goat milk formula products, have been volatile since its weak earnings results were made public. Following a crash of -$0.65 or -21.67% last Thursday and a recovery of +$0.40 or +17.02% last Friday, the stock closed with another major loss of -$0.48 or -17.45% today. Yayi international was the biggest loser of the day percentwise. Shares of China Pharma Holdings (CPHI), a pharmaceutical products manufacturer, have been showing downward momentum for nearly two weeks. The stock tumbled -$0.21 or -6.33% on above average trading volume, suggesting its selling pressure might be over and ready to rebound. Shares of China Kangtai Cactus (CKGT) decreased -$0.09 or -4.29% accompanied by light volume. The slight drop is more of a technical correction. Shares of China Biologic Products (CBPO) slightly gave back previous gains due to positive earnings results announced last Wednesday, closing with a loss of -$0.47 or -4.09%. China Biologic is a plasma-based biopharmaceutical company.

Orient Paper (ONP) today released fourth quarter and full year 2009 results before the market closed and its shares slipped slightly by -$0.37 or -3.85% on above average trading volume. For the fourth quarter 2009, the company had revenues increasing 97.6% year-over-year to $31.4 million and net income increasing 42.4% year-over-year to $3.1 million or $0.21 per diluted share. For the full year 2009, revenue increased 56.7% to $102.1 million and net income increased 45.0% to $12.7 million or $1.04 per diluted share. Regarding its 2010 outlook, the company reaffirms its ability to achieve the make good target of $18.0 million in adjusted net income or $1.21 per fully diluted share for fiscal year 2010.

China Biologic Products (CBPO), the most outstanding gainer of the week, skyrocketed $2.33 or +25.41% this week supported by strong earnings results announced this Wednesday. The company reported that revenues for 2009 fourth quarter reached a record $37.6 million, up 185.6% from the same period a year ago and adjusted net income was $11.1 million or $044 per diluted share, a 242.4% increase from $3.2 million or $0.15 per diluted share in the fourth quarter of 2008. The results pushed the stock to break above its 50-day moving average of $9.86. China TransInfo Technology (CTFO) was the biggest decliner of the week in percentage terms, dipping 11.86% for the week. Though the company announced record 2009 fourth quarter and full year earnings results, its 2010 outlook failed to impress the investors. The stock slumped 6.37%, breaking below its 50-day and 200-day moving average on Tuesday and descended another 7.20% with a low under $7.00 on Wednesday.

Among other winners, shares of SORL Auto Parts (SORL) have seen gains for five days in a row as earnings results approach, advancing $1.66 or 20.77%. The company plans to announce 2009 fourth quarter and fiscal year financial results on upcoming Monday, March 29, 2010, before the market opens. Analysts estimate $36.25 million in revenue and $0.19 in earnings per share for the fourth quarter on average. Shares of ReneSola (SOL) jumped back from last week’s losses, gaining $0.70 or 14.26%. The stock broke above 50-day moving average of $5.01 this Thursday on 1.48 million shares and 200-day moving average of $5.06 in the end of the week on 3.73 million shares. CDC Corp. (CHINA) showed bullish momentum this week, edging up 13.91% on heavy underlying volume after the company announced that its CDC Factory Solution is being implemented by Boots Contract Manufacturing, a leading manufacturer of healthcare products in Europe and its upcoming new local game begins final closed beta test. Shares of the company reached a $3.00 level on 1.40 million shares this Friday.

China Automotive Systems (CAAS)’s strong growth in earnings resulted in a big surge on Thursday, hitting a high of $24.42 or 10.05% higher on strong volume of 2.68 million shares. China Automotive Systems announced that for the fourth quarter net sales increased 118.9% year-over-year to a record $83.8 million and net income surged 1,199.5% from $0.5 million to $6.5 million, or $0.21 per diluted share, beating analysts’ estimations. For the fiscal year 2009, the company had net sales rising by 56.6% year-over-year to a record $255.6 million and net income increasing 88.3% to $23.4 million, or $0.78 per diluted share. For 2010 outlook, CAAS expects revenue growth to be 20% for 2010 full year, implying revenues of $306.72 million.

In terms of dollars, Perfect World (PWRD) stock was the most notable loser with a huge loss of $4.68, or 11.13%. Shares of the company have been volatile, giving up most of gains occurred last week and pulling back to the $37 level. On Friday, Perfect World announced agreement to acquire C&C Media Co., Ltd, a Japanese online game operator. Following continuous gains on positive earnings results for the past couple weeks, shares of Netease.com (NTES) became overbought and started to fall back from last Friday, plunging $3.94 or 9.80% for the week. On Wednesday, the stock broke below its 50-day moving average of $36.99 with heavy trade. Auriga U.S.A. initiated coverage of NTES with a buy rating and a price target of $49 since it believes that the company’s joint venture with Activision Blizzard could provide a bigger variety of games and further attract more users. Yayi International (YYIN) reported weak first quarter fiscal year 2010 earnings last week sending the shares down as investors started to digest the results. The stock showed a sell-off, a significant dip of 21.67% on Thursday, falling below its support level of $3.00, and climbed back 17.02% with light volume on Friday. Tianyin Pharmaceutical (TPI) edged 7.92% down for the week and broke through its 200-day moving average on Thursday. The company has no recent news or filings.

Among other gainers, shares of SORL Auto Parts (SORL), a manufacturer and distributor of commercial vehicle air brake systems as well as related auto parts, had another surge with above average trading volume as an earnings announcement nears, closing 4.75% higher. The company is scheduled to report the financial results next Monday before the market opens. Following a coverage initiated by Auriga U.S.A.with a BUY rating, shares of Shanda Interactive Entertainment (SNDA), a leading interactive entertainment media company, slightly bounced back from the recent losses due to disappointing earnings results, advancing $1.90 or +4.57% with nearly two times its average trading volume. This Monday, Shanda announced a share repurchase plan under which the company is authorized to repurchase up to $300 million worth of its outstanding American Depositary Shares. SNDA is currently trading below both its 50-day moving average of $45.54 and 200-day moving average of $49.84. In the past 52 weeks, shares of SNDA have traded between $34.83 and $65.00 with an average trading volume of 826,000 shares.

Lihua International (LIWA), a manufacturer of copper replacement products for magnet and fine wire markets in China, is going to report its 2009 fourth quarter and full year earnings next Wednesday, March 31, 2010, before the market opens. Shares of the company surged 4.40%, breaking through its 50-day moving average of $8.71. Shares of Tongxin International (TXIC), a manufacturer of engineered vehicle body structures, climbed back from its previous low and advanced 3.93% on below average trading volume.

Among other losers, shares of China Shenghuo Pharmaceutical (KUN), a pharmaceutical company, decreased 6.98% in percentage terms but only $0.06 in dollar terms, with weak volume. Following three straight gains in a row, shares of Melco Grown Entertainment (MPEL), operating casino gaming and entertainment resorts within Macau, became overbought and declined $0.28 or 5.43% with strong volume. Shares of Tianyin Pharmaceutical (TPI), a modernized traditional Chinese medicine manufacturer and supplier, fell $0.20, or 5.41% today with relatively higher volume. Tianyin has no recent news or filings. After disappointing 2009 fourth quarter earnings, shares of China Unicom Hong Kong (CHU), a telecommunication services provider, continues to fall, shedding 5.02% with 6.6 million shares traded.

Shares of China TransInfo Technology (CTFO), a provider of public transportation information systems technology and comprehensive solutions, continued to show its downward momentum following the earnings results announcement, closing with a loss of $0.54, or 7.20% on heavy volume today. The company is currently trading below its 50-day moving average of $7.56 and 200-day moving average of $7.52.

Shares of China Kangtai Cactus (CKGT), an integrated grower, developer, manufacturer and marketer of a variety of cactus-based products, bounced back and advanced $0.17, or 8.49% accompanied by far below average volume. China organic Agriculture (CNOA), engaged in the trading and distribution of agricultural products, announced that it has completed acquiring 60% of the stock of Changbai Eco-Beverage for $10.25 million. Founded in May 2008, Changbai estimates a net income of approximately RMB15 million ($2.19 million) in 2009. The news helped the stock climb back from its previous losses, closing with a gain of $0.07, or 8.49%.

As an earnings announcement near, shares of SORL Auto Parts (SORL), a manufacturer and distributor of commercial vehicle air brake system as well as related auto parts, soared 7.88% on average volume, closing right near its high of the day. Shares of Lihua International (LIWA), a manufacturer of copper replacement products for magnet and fine wire markets, advanced $0.47, or 5.75%, on average volume. The company announced that financial results for the fourth quarter and year ended December 31, 2009 will be released on Wednesday, March 31, 2010, before the market opens.

Among other top losers, shares of AsiaInfo Holdings (ASIA), a provider of telecom software solutions and IT security products and services, has declined four days in a row, shedding $1.43, or 5.18% with 1.5 million shares traded. The stock gave back most of gains due to Goldman Sachs upgrade earlier this month. Shares of China Unicom Hong Kong Limited (CHU), a telecommunications services provider, fell 5.09% with above average volume on disappointing 2009 fourth quarter earnings. The company reported its net income for full year 2009 was RMB9.56 billion, representing a decrease of 35.2% over last year due to the decline of fixed-line voice business and the 3G business being at the initial state of operation.

Shares of Perfect World (PWRD), pulled back from its previous gains, ending 4.96% lower. PWRD is currently trading at around its 50-day moving average of $39.02 and 200-day moving average of $39.41. Shares of Longtop Financial Technologies (LFT), a software developer and solutions provider targeting the financial services industry in China, gave up most of its previous gains and have dropped for the eighth day in a row, pulling back to a $30 level. LFT is currently trading far below its 50-day moving average of $34.26 and slightly below the 200-day moving average of $30.82.

After reaching a 9-month low, shares of QKL Stores (QKLS), a regional supermarket chain in Northeast China, have regained 200-day moving average of $5.79 but remained well below the 50-day moving average of $6.14. QKLS traded with a high $5.90 and a low of $5.00, ending at $5.80 or 11.54% higher with 467,513 shares trading hands. Shares of Telestone Technologies (TSTC), a developer of local access network solutions, products, and engineering services, climbed back from its earlier losses due to the company filed an S-3 registration statement containing a prospectus that the it may offer securities having an aggregate initial offering price of up to $150 million. Stock gained $1.61 or 9.91% with average volume, 751,186 shares, traded. Following a huge slump on 7.9 million American depositary shares offering, shares of Trina Solar (TSL), an integrated manufacturer of solar photovoltaic, became oversold and gradually climbed back, gaining $1.46, or 6.93% on above-average volume of 4.28 million shares traded.

In dollar terms, Cninsure (CISG), an independent insurance intermediary company, is the biggest winner today. Shares jumped $1.65, or 6.45% in nearly three times its average trading volume and set a fresh 52-week high of $27.30. Since the company reported its impressive earnings results on March 2, 2010, shares have advanced $5.00 or 22.48% while market capitalization increased by $228.12 million based on the shares outstanding of 45.62 million (as of its last quarterly filing). Cninsure is currently well above its 50-day moving average of $21.53 and 200-day moving average of $19.67.

Shares of American Lorain Corp. (ALN), an international processed-foods company, slightly gave back previous gains, decreasing $0.15, or 3.97% accompanied by well below average volume. ALN is currently above its 50-day moving average of $3.46 and 200-day moving average of $2.89. Shares Netease.com (NTES), an internet and online game services provider, also gave back previous gains credited to positive 2009 fourth quarter and full year earnings results, slightly decreased by 3.28% with below-average volume. Sina Corp. (SINA), one of the leading online media company in China, fell $1.11, 2.79% with average volume of 1.12 million shares traded. Shares of The 9 Limited (NCTY), an online game developer and operator in China, have descended 3 days in a row following the announcement that its President’s contract will expire on May of 2010 and not be renewed. Before the market opened, the company and Red 5 Studios, an online game developer in the U.S., jointly announced that they have entered into a definitive investment agreement pursuant to which The 9 will invest a total amount of approximately US$20 million for a majority interest in Red 5. Shares of NCTY declined $0.19, or 2.70% with week volume.

In the case of China Armco Metals (CNAM), the “good things” turned out to be incredible gains over the past few weeks after a very long period of dormancy. China Armco Metals, Inc. is engaged in the sale and distribution of metal ore and non-ferrous metals throughout China and has entered the recycling business with the Company's acquisition of 22 acres of land for the construction and operation of a one million ton per year shredder and recycler of metals.

China Armco maintains customers throughout China which include the fastest growing steel producing mills and foundries in China. Raw materials are supplied from global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, the Philippines and Libya. The Company's product lines include ferrous and non-ferrous ore; iron ore, chrome ore, nickel ore, copper ore, manganese ore and steel billet. Upon completion and testing of its new facility late in the fourth quarter of 2009, China Armco Metals expects to launch operations in its steel recycling and scrap metal recycling business early in 2010.

The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap metal in China. ARMCO estimates the recycled metal market as 70 million metric tons.

Shares of China Armco have traded at the $2-$3 levels for over six months from August of 2009 through February of 2010. With very little volume and not much attention from Wall Street, the volatility in China Armco was just too great. The fact that company was traded on the OTC Bulletin Board certainly didn’t help. However, we couldn’t just ignore the company.

That is why China Vesting added China Armco Metals (CNAM) to our Dragon Undervalued Index in early February and since that time shares have skyrocketed from the mid three dollar range to a high of eleven dollars. The bulk of the gains can be credited to the company’s senior listing on February 10, 2010 along with very strong fundamental developments within the China Armco’s steel scrap recycling division.

		Volume has picked up tremendously with average daily volume over the past 90 days at 676,943. In a word….China Armco has grown up and its time the company takes it place at the next level. China Vesting is graduating the company to its Tiger Mid & Small Cap Index where it will join the most popular U.S. listed China based companies. Shares of China Armco Metals have since pulled back to the mid $8 levels and we think this is the perfect opportunity to establish a position in a company poised for hyper growth.

China Armco (as of its last quarterly filing) had 10,100,000 shares outstanding with float of just 4,220,000. From Dec 29, 2009 till February 20, 2010 a total of 1,913,100 shares traded. This represents 45.3% of the float over a 36 day trading period. That comes out to an average of 53,141 shares per day which is hardly anything to get excited about. Then from February 23, 2010 to March 3, 2010 things started getting interesting with a seven day trading volume total of 2,908,000 or 68.9% of the float. That equals out to a daily average of 415,428 shares. It took 36 trading days to turnover 45.3% of the float while it took 7 days to turnover 68.9% of the float. With the entire float turned over in those 41 trading days it wouldn’t take too much guessing to see what was coming next. On March 4, 2010 volume in China Armco exploded with 7,119,800 exchanging hands. This was followed up a 7,633,600 share day then another high volume trading day with volume at 4,736,700. In three trading days 19,490,100 shares traded hands and the float was turned over 4.6 times. The stock also made a dramatic move from $3.63 per share on February 19 to a high of $11.10 on March 5th. With such a high float turnover rate a new set of shareholders came into the stock and a new base was established. However over the next few trading days China Armco began a steady decline from March 15th to March 18th. Over those four trading days 4,202,000 traded hands but the stock took a beating from the mid $9 levels a few days back to a low of $7.05 per share on March 18th. It didn’t make sense that a stock with such a high float turnover would experience this kind of decline. What was going on?

On March 5, 2010 China Armco filed a post amendment registration:

2,723,914 warrants exercisable at $5.00 per share were being registered and subsequently the registration was deemed effective. It is no wonder the stock felt pressure and dropped so precipitously for no fundamental reason. However, on March 19 shares of China Armco bounced back for the first time in five trading sessions up from $7.11 to $7.83 per share on volume of 2,550,900. It’s safe to say that the warrants have all been exercised or there is very little left. It should be a matter of time before the company announces that they were able to raise a significant amount of capital from the exercise of warrants. We would not be surprised if the figure is $10,000,000 or more. From looking at the tape it is extremely impressive that a potential 2,723,914 shares hit the bid relentlessly and shares of China Armco were able to withstand the pressure.

China Armco has always been a great story with decent but not stellar fundamentals. For the year ending December 31, 2008 revenues were $55.3 million while net income was $3.33 million which is a net profit margin of just 6%. Hardly an exciting business but the growth has always been about the company’s state of the art steel scrap recycling plant. However, investors that buy story stocks are always happy to see some fundamentals behind the company before the story comes into fruition. Unfortunately, in 2009 the fundamentals in China Armco’s distribution business felt tremendous pressure with 2009 Q1 revenues of $5.358 million which squeaked out a gain of $128k. Things turned around the following quarter with the distribution business producing revenues of $22.5 million with net income of $3.370 million. At that point everything seemed to be in the clear but the following quarter the distribution business let investors down again. Revenues for 2009 Q3 came in strong at $27.312 million but net loss for the quarter was $830k. China Armco’s distribution business is quite volatile but the real story has been and continues to be the steel scrap recycling plant. Then it finally happened….on March 4, 2010 made a massive announcement: Armet Renewable Resource Company, Limited, the Company's wholly owned subsidiary, has signed a contract to supply a major Chinese steel producer with up to 230,000 tons of scrap steel in 2010. The contract calls for the delivery of up to 23,000 metric tons of scrap steel per month for 10 months beginning in March of 2010. Based on the current spot price of scrap steel, this supply contract is valued at over $100 million. Furthermore: Management anticipates this supply contract will allow the company to sell all of the initial production from its recently completed 1 million ton recycling facility during the first several months of operation. Additionally, management anticipates reaching a full capacity run rate sometime in the fourth quarter of 2010. At full capacity the facility is capable of processing approximately 1 million metric tons of scrap steel per year or over $400 million annually at current prices.

This means that the $100 million contract comes in at $10 million per month in revenue. What is not known at this time is the gross profit from this contract. If China Armco is able to maintain its distribution business and produce $3 million a year in net income the steel scrap recycling plant should do the rest.

The entire world knows China has an almost unquenchable thirst for steel. The move to greener solutions such as China Armco’s steel scrap recycling plant makes us confident that reaching its annual capacity of $400 million is quite possible. The recycling facility is expected to be capable of recycling one million metric tons of scrap metal per year which will position the Company as one of the top 10 largest recyclers of scrap metal in China. ARMCO estimates the recycled metal market as 70 million metric tons.

There are currently 10,100,000 shares outstanding but we know the number is higher due to warrant exercises. Let’s assume all the warrants were indeed exercised bringing the total share count to 12,823,914 shares outstanding. Based on Friday’s close of $7.83 per share the market capitalization is $100,411,246 million.

This is where some assumptions need to be made:

If the distribution business is able to maintain and the steel scrap recycling business produces a net margin of 10% then for 2010 the potential net income could be $13 million. $10 million would be from the $100 million dollar contract that runs 10 months from March 2010 till the end of the calendar year. The remaining $3 million in net income would come from the distribution business.

That would work out to a forward PE of 7.723 based on 2010 estimates. Being that there are three quarters left in the calendar year it would seem plausible that China Armco would be able to sign more contracts for it steel scrap recycling plant. One fourth of the capacity is already spoken for and if China Armco can get anywhere close to reaching capacity then we predict the company will be the best performing company in the Tiger Mid & Small Cap Index for 2010.

China Marine Food Group (CMFO) today reported record earnings results for fourth quarter and fiscal year 2009 however shares slightly dropped $0.24, or 3.53%. For fourth quarter, its revenue was $24.9 million, up 85.0% from fourth quarter 2008 and net income was $4.5 million, up 74.1% from same quarter 2008. Total revenue for fiscal year 2009 was $69.6 million, up 42.6% from fiscal year 2008 and net income was $14.6 million, up 30.9% from last year which both exceed guidances of $60.0 million and $14.3 million. As of December 31, 2009, the company has cash and cash equivalents of $7.14 million and accounts receivable of 18.83 million compared to $31.64 million and $4.81 million respectively as of December 31, 2008. The company forecasts net revenue of $100.0 million and net income of $21.5 million for fiscal year 2010.

Orient Paper (ONP) bounced back from last week’s losses on internet doubt of company pulling out of a Roth Capital Conference, advancing $0.71, or 8.65%. Melco Grown Entertainment (MPEL) resumed the gain following three days slight declines, advancing 7.47% on 7.04 million shares traded. Last Tuesday, Melco Grown surged 8.50% on favorable comments from Macau Chief Executive that Macau will seek to regulate the building of new casinos which will benefit the existing casino operators. Given the fact that Macau has been the fastest growing market in the gambling industry, Melco Grown keeps showing its strength. Following a dip fall of 21.41% with a 44-week low of $6.07 on worse-than-expected 2009 fourth quarter earnings, HQ Sustainable Maritime Industries (HQS) became oversold and slightly bounced back today with a 3.92% gain at 319,519 shares traded.

Following a 6-day gain in a row, Yucheng Technologies halted its upward trend and dropped 5.00% with neutral volume of 489,784 shares traded. Following the article published by Metal Pages describing China Direct has shelved plans to become an importer of magnesium into the United States due to spiraling application costs and a heavy documentation process required by the U.S. government according to trade sources, China Direct Industries (CDII) have been descending three days in a low, closing 4.48% lower in today’s trading session. Telestone Technologies (TSTC) continued its downward trend since it filled a registration statement S-3 containing a prospectus that the company may offer securities having an aggregate initial offering price of up to $150 million.

China Biotics (CHBT) was the best performer this week among the 100 companies that comprise the index, ascending $1.46, or 8.49%. The stock dropped $0.98, or 5.59%, at the start of the week, bounced back $1.28, or 13%, on Thursday’s trading session, and set a fresh 52-week high of $19.44 on Friday. Since the company announced its positive financial results for the third quarter of 2010 fiscal year on February 10, 2010, its shares have advanced $5.40 or 40.75% and market capitalization have increased $120.79 million. China Biotics reported the net sales increased 47% from $15.8 million to $23.3 million a year ago with a net income of $10.5 million, representing an increase of 85% from $5.7 million in the prior year. The company said its new bulk additive production facility has commenced commercial production in late February and expects to produce 5 tons by the end of March. According to the company, the capacity utilization will gradually reach a run rate of 75 tons per year by December 2010.

Yucheng Technologies (YTEC), another top performer of the week, has gradually bounced back from major losses starting from the end of January due to its disappointing fourth quarter and full year 2009 financial results as well as its unattractive 2010 guidance. On February 9, its shares hit a new 52-week low of $3.07 on 1.2 million shares traded and started to trade above $4.00 this Tuesday. YTEC climbed 7.42% in the week. Similar to Yucheng Technology, Perfect World (PWRD) climbed back from a 7-month low of $35.02 set since its 2009 fourth quarter earnings results were below analysts’ estimations. Though investors gave negative reaction to PWRD’s 2009 Q4 numbers, they are still looking forward to its performance in current year given the fact that China is currently one of the world’s fastest growing online game markets. Perfect World expects revenue to grow 46% to 51% for the 2010 first quarter. In the week, PWRD advanced $2.25 or 5.70% with a high of $42.18 and a low of $38.62.

Fuqi International (FUQI), the worst performer of the week among both 100 companies and 48 Tiger companies, plunged $8.63 or 45.59% caused by an announcement that the company will delay releasing fourth quarter earnings results and has to restate earnings results for the previous three quarters due to accounting irregularities. Following the news, more and more law firms commenced to investigate possible violations on the company’s public statements regarding its financial performance. The last day of the week, FUQI hit a 9-month low of $10.30 accompanied by heavy trading volume.

Among other top losers of the week, QKL Stores (QKLS) gave back its previous gains and pulled back to a 9-month low of under $5.00. Shares descended $1.55, or 23.32% in the week. Disappointing earnings sent HQ Sustainable Maritime Industries (HQS) dipping $1.67, or 21.41% with a 44-week low of $6.07. The company reported its net sales for the fourth quarter of 2009 increased 8.2% to $23.3 million, compared to $21.5 million the same period in the prior year while net income decreased 19% to $8.1 million, compared to $10.0 million the same period in the prior year.

Orient Paper (ONP) tanked $1.61, or 16.44% in the week without any news coming out other than an announcement that its digital photo paper production line commenced production on March 10, 2010. Internet Rumors that Orient Paper was pulling out of the ROTH Capital Annual OC Growth Stock Conference held from March 15-17, sent shares of ONP down 7.13% on Wednesday and down 10.19% on Friday (a 4-month low of $8.01). The company did not issue any press release confirming the rumors. Trina Solar is the worst stock among 27 Panda companies, lost $2.20, or 9.36% for the week due to a secondary offering of 7.9 million American depositary shares priced at $20.25 each.

In the upcoming week, China Transinfo (CTFO), China Telecom (CHA), AND Petrochina (PTR) are scheduled to report earnings for the 2009 fourth quarter on Monday, March 22. China Automotive (CAAS) and Agria (GRO) will report earnings on Thursday, March 25 and CNOOC (CEO) is scheduled to announce results on Friday, March 26.

Today’s worst performer, Fuqi International (FUQI) had another major decline following the news of an accounting irregularity, tanking $1.63, or 13.66% at 4.8 million shares traded making a new 9-month low of $10.30. Since the news came out, FUQI’s market capitalization has decreased $240 million. After the market closed yesterday, Abraham, Fruchter & Twersky, LLP announced it has commenced an investigation concerning possible violation by FUQI related to its public statements regarding the financial performance between March 15, 2009 through March 16, 2010.

Announcing pricing of 7.9 million American depositary shares [ADSs] at $20.25, $2 below the price indicated in the prospectus, Trina Solar (TSL)’s pre-market press release fueled its stock trading with heavy volume. TSL slightly climbed back from yesterday’s huge dip due to its 7.9 million ADSs offering and closed at $21.30, or 3.70% higher. Following 5-day successive drops due to its disappointing 2009 fourth quarter financial reports and CFO’s resignation, Acorn International (ATV) today saw a slight increase, ended at $5.19, or 3.39% higher, on 276, 946 shares traded.

Orient Paper (ONP), one of the top decliners, dropped $0.93 or 10.19% with a new 4-month low of $8.01. On March 11, 2010, the company announced its management team will attend the ROTH Capital 22nd Annual OC Growth Stock Conference held from March 15-17, 2010. Today, the internet rumors that ONP pulling out of the conference sent the stocks down. Orient Paper did not issue any press releases confirming the rumors. SinoHub (SIHI), closed at below $3, or 8.81% lower with a 7-month low of $2.86 accompanied by nearly 15 times its regular trading volume. Today, SIHI filed a form 424B3 containing a prospectus related to the resale of up to 2.61 million shares of common stock, including shares of common stock issuable upon the exercise of warrants.

Shares of China Architectural Engineering, Inc. (CAEI), engaged in the design, engineering, fabrication, and installation of high-end building envelope systems, have been advancing three days in a row, closing at $1.20, or 4.35% higher on nearly five times its regular trading volume following TheStreet.com ratings stock report and ValuEngine industry report. China Sky One Medical, Inc. (CSKI), an integrated pharmaceutical company in China, pulled back from yesterday’s slump on lower-than-expected 2009 fourth quarter earnings. Shares closed at $15.09, or 4.14% higher following the announcement that Antroquinonol capsule, a new anti-cancer drug co-developed by Taiwan Golden Biotechnology Corporation was recognized as Breakthrough Drug by the Chinese Ministry of Science and Technology.

Trina Solar Ltd. (TSL), an integrated manufacturer of solar photovoltaic, dipped $2.54, or 11.01%, making it the worst performer today. After the market closed yesterday, TSL announced it plans to offer 7.9 million American depositary shares [ADSs], each representing 50 ordinary shares of the company, and intends to grant the underwriters an option to purchase up to additional 1.185 million ADSs. The net proceeds are expected to be used for manufacturing facilities expansion. Shares of AirMedia Group Inc. (AMCN), an operator of out-of-home advertising platforms in China, have declined four days in a row, ended 6.67% lower, with no apparent reasons. QKL Stores Inc. (QKLS), a regional supermarket chain in Northeast China, continued its downward trend, dropping 5.28% and reaching a 6-month low of $5.01.

Suntech Power Holdings (STP), a producer of crystalline silicon photovoltaic modules, has been up for three days in a row with heavy underlying volume. Shares edged 5.30% up, closing at $15.09, after announcement that STP will supply solar panels for Taiwan’s largest solar power plant. China Shenghuo Pharma (KUN), engaged in the research, development, manufacture, and marketing of pharmaceutical, nutritional supplement and cosmetic products, bounced back from last Friday’s slump, gaining 5.91% week-to-date following TheStreet.com rating report issued over the weekend.

In dollar terms, New Oriental Education & Technology ADR (EDU), a provider of private educational services in China, increased $2.89, making it one of the top performers today. Since its chairman announced revenue growth of about 30 percent this year and Deutsche Bank initiated coverage with a buy rating on its stock, EDU has been showing its strong momentum for the past two weeks. Before the market closed, shares of EDU closed at $87.90, hitting a record 52-week high of $88.00.

Fuqi International, Inc. (FUQI), engaged in designing, developing, and selling metal jewelry in China, plunged 37.37%, hitting a low of $11.78 on the news of accounting errors that are expected to have a material impact on the previously filed quarterly financial statements for the first three quarters of 2009. Due to the mistakes, the gross profit and net income were overstated. For the nine-month period ended September 30, 2009, earnings per share were overstated in the range of $0.15-$0.19 per share. Kendall Law Group today announced that it is investigating FUQI for potential violations of state and federal securities laws.

China Sky One Medical, Inc. (CSKI), an integrated pharmaceutical company in China, announced 2009 fourth quarter and full year earnings results, below expectations, and its shares fell hard by 15.51%, hitting a 3-month low of $14.19. The company reported total revenues for 2009 fourth quarter increased 15.0% year-over-year to $29.9 million and net income decreased 23.6% year-over-year to $5.3 million. For 2009 full year, total revenues increased 41.7% to $130.1 million and net income increased 19.4% to $34.5 million. CSKI forecasts net revenue growth of approximately 20% or $156million for 2010 full year.

QKL Stores Inc. (QKLS), a regional supermarket chain in Northeast China, has been down for three days in a row following several research reports issued by EconomicInvestor and TheStreet.com Ratings. Shares dipped 12.58% and hit a 6-month low of $5.40. Lihua International, Inc. (LIWA), a manufacturer of copper replacement products for magnet and fine wire markets in China, also fell three days in a row with no apparent reasons.

Melco Crown Entertainment Ltd. (MPEL), developing and operating casino gaming and entertainment resorts within Macau, surged 8.50% with heavy volume, fueled by a Credit Suisse upgrade. MPEL today reached a 3-month high of $4.97 and it has traded between $2.92 and $8.45 over the past year. Yucheng Technologies Limited (YTEC), providing information technology software, solutions, and services to the banking sector in China, advanced 5.50% in triple its regular trade volume following research reports issued by Market Edge, ValuEngine, and EconomicInvestor. GigaMedia Ltd. (GIGM), a gaming software and services provider in China, traded in nearly twice its regular volume, closing 4.46% higher on research reports issued by New Constructs and Plunkett Research.

China Agritech Inc. (CAGC), engaging in the manufacture and sale of organic liquid compound fertilizers and related agricultural products in China, dropped 11.83% with several recent reports issued by ValuEngine, Pechala's Reports, and EconomicInvestor. HQ Sustainable Maritime Industries Inc. (HQS), an integrated aquatic product producing, processing, and farming company in China, fell 10.26% to close at $7.00 following a below-expected fourth quarter and full year 2009 earnings results. Its fourth quarter net income fell to $1.6 million, or $0.12 per diluted shares from $6.4 million, or $0.53 per diluted share. Full year net income fell by 19%, from $10 million in 2008 to $8.1 million in 2009.

China Armco Metals, Inc. (CNAM), specializing in importing and distributing metal ore, edged 7.67% down for no apparent reasons while QKL Stores Inc. (QKLS), a grocery store chain in China, was done 5.56% even with a positive commentary posted online.

Focus Media Holding Ltd. (FMCN), a multi-platform digital media company in China, kept up its upward trend since last week. With several research institutes' coverages, shares had another gain of 3.41%, hitting a high of $17. FMCN will report its financial results for the fourth quarter and full year 2009 tomorrow after market closes.

China Housing and Land Development, Inc. (CHLN), engaging in the acquisition, development, management, and sale of commercial and residential real estate properties in China, fell off a cliff with a 10.55% loss in triple its normal trade volume, after announcing its fourth quarter and full year 2009 financial results before market opened. Though the company's revenues for full year 2009 increased 227% to $86.6 million from $26.5 million, its net income decreased 71% to $2.5 million from $8.8 million. In the fourth quarter of 2009, the company had revenues of $26.3 million and a net loss of $1.1 million.

Shares of American Oriental Bioengineering Inc. (AOB), a pharmaceutical company in China, dropped 8.10% on the disappointing 2009 financial results. The company reported revenue of $296.2 million for fiscal year 2009, an increase of 11.9% compared to the prior year period, with a net income of $41.4 million, a decrease of 12.1%

L & L International Holdings (LLEN), operating coal businesses in China, gave back earlier gains with no apparent reasons, closing 6.75% lower. LDK Solar Co.Ltd. (LDK), engaging in the manufacture and sale of multicrystalline solar wafers, also gave back earlier gains with some negative comments posted online.

A-Power Energy Generation Systems, Ltd. (APWR), a provider of distributed power generation systems in China, jumped 13.03% from $11.82 at the start of the week to $13.36 on Friday following two exciting announcements, APWR’s wholly owned subsidiary won a $1.7 million contract, and APWR plans to build a 320,000 square feet wind turbine manufacturing plant in Nevada with two U.S. firms which is expected to create approximately 1,000 jobs during the construction process.

LDK Solar Co. Ltd. (LDK), a vertically integrated manufacturer of photovoltaic products and producer of multicrystalline wafers, advanced 12.01% in the week with heavy trading volume. On Wednesday, LDK shares climbed 9.76% with no news or press releases, slipped slightly on Thursday and added 3.31% on Friday following the announcement that the company narrows guidance for fourth quarter 2009 revenue results and provides outlook for fiscal year 2010. LDK expects revenue for the fourth quarter 2009 in the range of $300 to $310 million compared to the previous estimation of $280 to $310 million and forecasts revenue of $1.35 to $1.45 billion for fiscal year 2010. LDK is looking to report earnings results for fourth quarter and fiscal year 2009 on March 30, 2010.

New Oriental Education & Technology Group (EDU), a provider of private educational services in China, is the best performer in the week in terms of dollars, advancing $8.65 and reaching a new 52-week high of $85.95. With several research reports issued recently and a news that the company expects a growth of about 30% in revenue this year, capitalizing on growing Chinese demand for educational services, shares have been up four days in a row.

Yayi International (YYIN), a producer and distributor of premium goat milk formula products in China, gave back earlier gains and fell five days in a low for no apparent reasons. On Friday morning, YYIN announced the launch of a flagship internet store that distributes its products on Taobao.com, a major online shopping marketplace in Asia.

After announcing the offering of 20 million new shares, China Security & Surveillance Technology (CSR), an integrated security and surveillance solution provider in China fell 13.13% in Thursday's trading session. Announcing a bigger net loss for the fourth quarter of 2009 and its CFO's resignation, Acorn International's (ATV) pre-market press releases immediately took the shares down 16.41% in more than six times its regular volume on Friday.

Following a 84.97% huge spike last week, shares of China Armco Metals (CNAM), a distributor of imported metal ore and metal recycler in China, gave back some of gains at the start of this week and dropped 14.73% in Friday’s trading session as the company filed a Form 424B3 containing a prospectus stating the selling security holders may offer and sell up to 2.7 million shares of common stock underlying warrants to purchase shares of common stock exercisable at $5.00 per share.

Several research reports issued at the beginning of this week helped Yuhe International (YUII), a supplier of day-old chickens raised for meat production or broilers in China, surge 11.88%. But, after announcing its accounting firm’s resignation on Thursday, YUII dropped 18.17%. On Friday, shares climbed back to a slight gain of 4.89%, closing at $10.30 a share.

China Agritech Inc. (CAGC), a national organic fertilizer manufacturer and distributor in China, advanced the most in dollar terms today, up $1.46 with heavy underlying volume. Shares of fertilizer segment came out of the gate strong this morning after Potash Corporation (POT), the world's largest fertilizer enterprise, announced its fourth quarter 2009 earnings results exceeded its guidance, reflecting a sharp rebound in potash demand is expected to drive a record first-quarter sales volume in North America. This positive news definitely helps other companies in the same segment.

Acorn International, Inc. (ATV), an integrated multi-platform marketing company in China, today announced its disappointing fourth quarter 2009 financial results and its CFO's resignation, sending shares of the company down 16.41%. The company reported it lost $10.1 million for fourth quarter 2009, compared with a loss of $9.4 million same period in 2008. ATV also declared that the reason for its CFO's resignation is to pursue other professional interests.

China Armco Metals, Inc. (CNAM), a distributor of imported metal ore and metal recycler in China, descended 14.73% as the company filed a Form 424B3 with Securities and Exchange Commission today containing a prospectus under which the selling security holders may offer and sell up to 2.7 million shares of common stock underlying warrants to purchase shares of common stock exercisable at $5.00 per share.

China Armco Metals, Inc. (CNAM), a distributor of imported metal ore and metal recycler in China, continued to show strength. Shares closed at $9.64, up 5.47% on strong volume, with no news and press releases coming along. Continuing its upward momentum, L & L International Holdings (LLEN), an U.S.-based company operating coal business in China, closed at $9.82 a share, representing a 5.03% increase, following the press release, issued early this month, reaffirming guidance for the fiscal year 2010.

Yuhe International, Inc. (YUII), a supplier of day-old chickens raised for meat production, or broilers, in China, is the biggest loser in today's trading session. Its shares declined sharply by 18.17% after the company disclosed in a filling with the Securities and Exchange Commission that its accounting firm, Grant Thornton resigned. During its audit procedures, Grant Thornton noted that Yuhe International has been unable to eliminate the occurrence of related party loans between the company and Yuhe Food. According to the filing, Grant Thornton also communicated to Yuhe International certain audit adjustments related to its financial statements for the fiscal year 2009, which indicated a material weakness of Yuhe International's internal control over financial reporting.

China Security & Surveillance Technology (CSR), an integrated security and surveillance solution provider in China, fell 13.13% today in heavy trade on the 20 million shares of its common stock offering. In the registration statement filed with Securities and Exchange Commission, the company stated that it has granted the underwriters a 30-day option to purchase up to an additional 3 million shares of common stock to cover over-allotments. The proceeds from this offering will be used for the repurchase or repayment of its notes and for general corporate purposes.

Biostar Pharmaceuticals (BSPM), the Xianyang-based manufacturer of a variety of pharmaceutical products and medical nutrients, stopped falling and climbed back to $3.75 per share. BSPM said it forecasts revenues of about $71.0 million with net income of $17 million, excluding any non-cash charges, for fiscal year 2010. Fuqi International, Inc. (FUQI), a designer, producer and seller of metal jewelry in China, advanced 6.36% thanks to several research reports issued this week.

American Oriental Bioengineering (AOB), a pharmaceutical company in China, rose 5.12% on the news that the company plans to release fourth quarter and full year 2009 financial results on Monday, March 15, 2010, before the market opens.

Yuhe International, Inc. (YUII), a supplier of day-old chickens raised for meat production, or broilers in China, kept up its upward momentum since it announced the completion of a new breeder farm and set a new 52-week high of $12.43 per share.

Following a pre-market press release announcing the fourth quarter and full year 2009 financial results, CDC Corp. (CHINA), a global enterprise software, IT services and new media company closed 5.19% lower in a heavy trade. Compared to the same period of 2008, CHINA's revenue for fourth quarter and full year 2009 decreased by 14.4% and 21.8% respectively. Its net income for the full year 2009 was $16.8 million, or $0.14 net income per share, compared to net loss of $114.2 million, or $1.07 net loss per share for full year 2008, which was primarily due to goodwill impairment.

Universal Travel Group (UTA), a travel services provider in China, fell 10.78% back to $9.68 per share following a 5.34% advance last Friday, March 5th. UTA today announced a correction for the press release issued last Friday. It stated that revenue generated by the air cargo agency segment for the three months ended December 31, 2008 was $2.4 million instead of $5.1 million. Announcing a 87.5% increase in net come for fourth quarter 2009 and a 13.0% decrease in net income for fiscal year 2009, China Mass Media Corp. (CMM), a media company in China, hit a high of $3.80 and closed at $3.02 with a heavy volume.

A-Power Energy Generation Systems, Ltd. (APWR), a provider of distributed power generation system and a manufacturer of wind turbines in China, continued its downward trend, ended 6.20% lower. China Armco Metals, Inc. (CNAM), a distributor of imported metal ore and metal recycler in China, opened at $9.95 and hit a high of $10.75 before closing at $9.45.

China Armco Metals, Inc. (CNAM), a distributor of imported metal ore and metal recycler, is this week's most outstanding gainer. Its share has increased 156% since it started to trading on the NYSE Amex on February 10, 2010. Investors were also rewarded by CNAM winning a supply contract worth $100 million. China Security & Surv Techno (CSR), a provider of digital surveillance technology, climbed 19.72% back to $8.68 per share with an encouraging fourth quarter and full year 2009 results. Cninsure Inc. (CISG), an independent insurance intermediary company, is another major contributor to the China 100 Stock Index up 18.22% in the week. CISG announced that its net income for fourth quarter 2009 was $13.7 million, an increase of 114.4% compared to the same period of 2008.

China Pharma Holdings, Inc. (CPHI), a specialty pharmaceutical company, fell 7.84 % in the week. CPHI's revenue for the full year 2009 increased 21% to 61.7 million but its gross profit margin decreased 8% from 50% to 42%. China Kangtai Cactus Bio (CKGT), a grower, developer, producer, and marketer of cactus-derived products, slipped 6.38% with the announcement of its unaudited full year 2009 results and fiscal year 2010 financial outlook. Shanda Interactive Entertainment Ltd. (SNDA), an interactive entertainment media company, continued dropping due to its lower than expected fourth quarter results were announced.

China Armco Metals, Inc. (CNAM) continued rising from yesterday's big gain, up 12.94% to $9.60 per share. CNAM filed 8-K disclosing a press release issued March 4 about winning a scrap metal sales contract with a China steel producer. L & L International Holdings (LLEN), another top gainer, advanced 11.65% following a press release issued yesterday announcing the company reaffirms fiscal 2010 guidance. LLEN expects annual revenue of $108.1 million, net income of $28.1 million, and EPS of $0.94 for the fiscal year ending April 30, 2010.

Solarfun Power Holdings Co. Ltd. (SOLF) slumped 9.10% after announcing its fourth quarter 2009 unaudited financial results. The revenue and net income (on a non-GAAP basis) for fourth quarter 2009 were $183.5 million and $14.1 million, representing increases of 11.6% and 40.6% from third quarter 2009 respectively. China Pharma Holdings, Inc. (CPHI) kept its downward trend, ending 7.09% lower. Today, CPHI announced full year 2009 financial results of revenue increasing 21% to $61.7 million, net income increasing 13% to 20.2 million, and EPS increasing 9.09% to $0.48.

Among the top losers, Mindray Medical International Limited (MR) stopped rising, down to $38.00, a 6.46% decrease. MR today issued a press release announcing the pricing of a public offering of 4,000,000 American depositary shares at $38.20 per ADS.

Lihua International, Inc. (LIWA) stopped rising and ended 6.19% lower. Focus Media Holding Ltd. (FMCN) fell 6.17%. China Kangtai Cactus Bio (CKGT) dropped 5.63% after the company announced its preliminary unaudited revenue results for the full year 2009 and forecasts for the full year 2010. CKGT believes reported revenue will be up 27% from $20.3 million in year 2008 to $25.8 million in year 2009 and targets its revenue for the full year 2010 to increase 35%. Yuhe International, Inc. (YUII) is down 5.09% after yesterday's big gain of 10.18%. YUII today announced that the company has completed construction of a new breeder farm, bringing its total number of breeder farms to 28.