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 (