Thursday, despite the disappointment around the lack of any new stimulus measures, the Chinese stock market still managed to trade to the upside, with the Shanghai Index closing up 1.04% to 2,221.08. That strength finally cooled off on Friday, as short-term speculators booked profits pushing the Shanghai Index down 1.26%. This is a minor pullback, when you compare it to the 7.22% run on Wednesday and Thursday.
China-focused investors have a more important reason to be bullish. This week, Chinese Premier Wen Jiabao said China can achieve
8% growth this year
in the face of a deepening global economic crisis. Jiabao also promised to announce more measures to raise exports and create more jobs. Also helping to increase bullish sentiment in the region were comments from China's stock regulator that said Beijing might cut a trading tax.
Looks like China is in the sweet spot. The country has a strong balance sheet and doesn't have to engage in heavy deficit financing to fund their stimulus package. In fact, many economists and market observers like Jim Cramer think China will soon begin to
around the globe, due to their strong financial position.
With so many things on the right track in China, how can you profit? Let's take a look at a few charts of China-based stocks that could be setting up to make a big move, including
Shanda Interactive Games
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