Don't let the recent pessimism over Chinese stocks fool you. The world's most populous nation is still putting out market winners, even as the overall gains in Chinese equities remain held in check.
Let's review some of the market's biggest gainers over the past five trading days:
|
Company |
Last Week's Gain |
|---|---|
|
Gushan Environmental (NYSE: GU) |
51% |
|
WSP Holdings (NYSE: WH) |
45% |
|
ReneSola (NYSE: SOL) |
43% |
|
Suntech Power (NYSE: STP) |
34% |
|
China Direct (AMEX: CDS) |
23% |
|
Jinpan (AMEX: JST) |
19% |
|
Sinovac Biotech (AMEX: SVA) |
19% |
Is there a common theme between these Chinese speedsters? Five of the stocks are energy plays, but even there, we find wide disparities in what the individual victors do. Whether it's solar energy (Suntech and ReneSola), electricity (Jinpan), oil exploration supplies (WSP), or biodiesel (Gushan), China offers public plays in all facets of the energy sector.
That leaves China Direct and Sinovac. The former is the only company on the list that isn't actually headquartered in China, but its bread-and-butter business is consulting services in the country's mainland. Meanwhile, infectious-disease vaccinations give Sinovac a shot -- pun intended -- in China.
Ultimately, last week's moves aren't global sector nods. There was certainly some favorable momentum in stateside solar energy players, but this is really more about China's quality companies beginning to prove their worth.
