The Smart Money's Top 9 Chinese Stock Picks

With all the hoopla surrounding Red China's sharp right turn toward capitalism, it's become almost gauche to rehash discussion of the country's dramatic economic growth. But investors simply can't ignore the rising crimson tide in the East, cliched though the topic may be.

Just look at the stats: China's nominal second-quarter GDP recently surpassed Japan's, making it the world's second-largest economy. And China's emergent middle class is growing even faster than expected. Case in point: Chinese drivers bought more cars than us gas-guzzling Americans last year.

Estimates made earlier this year put China's economy at a whopping $123 trillion by the year 2040, with a per capita income of $85,000 -- that's double what's projected for the EU in that same year.

Most foreign policy experts concur that Chinese growth looks like a near-inevitability, at least in the long-term. But short-term, investing in China comes with its risks, among them geopolitical tensions, international pressure on its currency, and the rising crime that comes with rapid urbanization. However, with great risk comes great reward -- and if you can turn a profit sooner rather than later, so much the better.

Which stocks offer an opportunity in the near-term? To help you get started, we've crunched the number and identified the Chinese stocks that have seen the largest institutional inflows over the past three months. If you'd like to analyze these stocks, use this free interactive tool.

Here are the smart money's favorite Chinese stocks. Data sourced from Reuters.

Interactive Chart: Press Play to see how the market caps of these stocks have fluctuated over the last two years.

Kapitall's Eben Esterhuizen and Alicia Sellitti don't own shares of any companies mentioned.