Chinese Small Stocks Wake Up With A Fury

After months of a deep freeze, Chinese small cap stocks are showing signs of major life. These plays have surged dramatically today, with many gains topping 10%.

Renren Inc(NYSE:RENN) $3.17, +0.38 (13.62%), E Commerce China Dangdang Inc (ADR) (NYSE:DANG) $4.17, +0.30 (7.75%), China New Borun Corp (NYSE:BORN) $1.50, +0.19 (14.50%).

Chinese small caps have been hated for years at this point. This is due to the constant stream of fraudulent companies being discovered in China. Investors do not truly know if the Chinese company they are looking at has revenues and earnings as stated, or if it is all made up.

With the market trading at all time highs, that seems to be a thought fading from view. Reality has little meaning when investors are running after yield and momentum. Now the search is on for anything that could advance and is still near lows. For the Chinese stocks, multi year lows. Spec money is chasing anything that has a pulse and these are no different.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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