All Eyes on Allyes

Ready for another smoking IPO from China? Reuters is reporting that Allyes AdNetwork, China's largest online marketing firm, has hooked up with Morgan Stanley (NYSE: MS  ) in a move to go public this year.

The last few years have been kind to new listings from the world's most populous nation. Home Inns (Nasdaq: HMIN  ) has soared since last year's debut, and 2005 debutante Baidu (Nasdaq: BIDU  ) has enjoyed a sizzling run.

It probably doesn't hurt that Baidu's stock-market popularity as China's leading search engine is based on the booming upside of online advertising. Allyes couldn't ask for a kinder climate, though naturally we'll want to see the audited financials before deciding whether the company's worth an investment. We've been spoiled by high-margin Chinese stocks like Baidu, SINA (Nasdaq: SINA  ) , and NetEase (Nasdaq: NTES  ) , and we've been quick to discard Chinese stocks that aren't offering much in growth, like enterprise software specialist Ninetowns (Nasdaq: NINE  ) .

Allyes isn't likely to be the only Chinese stock to go public this year. With the 2008 Olympics shining a bright spotlight on China next summer, you can bet that other companies will be calling up investment bankers to make sure that they're sitting pretty, well before the world realizes how far China has come.

Long before the Olympic trials start, China's looking to bring home some gold.

Baidu and NetEase have been singled out to Rule Breakers readers. To see all the reasons why, take a free 30-day trial to the market-beating newsletter.

SINA is a Stock Advisor selection.

Longtime Fool contributor Rick Munarriz has been a fan of China's growth stocks for several years now, even though he does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.