Rick Pearson is a Beijing-based private investor focusing on U.S.-listed China small-cap stocks. He is a contributing writer to TheStreet whose views on these stocks are independent of TheStreet's news coverage.
BEIJING (TheStreet) -- You'd think China small-cap stocks would have cratered in the wake of news that the Securities and Exchange Commission is probing alleged China stock fraud, intense media criticism of China stocks and increased short-selling attacks.
As shown below, U.S.-listed China small-caps have actually risen over the past month despite all these headwinds.That doesn't mean investors should think everything's OK with these stocks and that they can blithely hop back into them. China small-caps are obviously a much riskier sector in which to invest now, and investors need to use a very high level of due diligence in this space.
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