Let me start by saying that I am a retired Engineer and therefore I make no recommendations with regard to buying or selling stocks or securities of any kind. The information contained herein may not be correct. This is just a history of my past experience and I pass it on in a hope that it may provide some insights as to what has worked for me.

Despite sluggish domestic stock performance in 2007 China stock investors have a good reason to cheer. The Shanghai Composite Index climbed 96.7 percent on the year, making it the world’s best performing major bourse in 2007. Chinese companies listed in Hong Kong were just as strong, shooting up 59 percent followed closely by the broader Hang Seng Index. Hong Kong blue chips rose 39 percent in 2007, representing its best annual rise since 1999. All major Chinese indices ended 2007 on a high note, prompting questions how long the China bull will run.

Chinese ADRs are trading sideways by noon with strenght in the solar sector. Ja Solar is taking the lead followed closely by CSIQ and STP. Ja Solar is up $1.57 or 9.91% at $17.42 by noon. Another China NASDAQ Index (CQI) heavyweight, BIDU, is up $6.38 to trade at $240.69 after Pacific Crest analyst Steve Weinstein raised his rating on the stock to Outperform from Sector Perform, setting a $350 price target. Baidu.com is trying to find support at current price level after falling -38.33% YTD.

For the week, Chinese stocks sufered heavy losses. The "BEST" five stocks for the week were: LONG, TSL, UTSI, SNP and HTX. ELong Inc. said it will announce fourth quarter financial results on February 26, 2008. There is a strong chance that the company will beat analysts expectations, estimates that the company will return to the black. Elong has long been conceived as underdog when it came to industry rival Ctrip.com (CTRP). Ctrip.com has been delivering strong earnings with impressive earnings growth and came under fire lately after heavy snowstorms created havoc right before the Chinese New Year. Bad weather halted trains, mass transportation all over China, denting into CTRP's profit.

With no action in China in due to the Chinese New Year kicking in, U.S. listed Chinese stocks or adrs tracked U.S. market sentiment very closely. Regarding the home market, Wall Street finished a dismal week with a mixed performance Friday as investors grappled with fears about insurers of distressed mortgage-backed bonds and anxiety about the broader economy. The DJIA dropped over 60 points while the NASDAQ composite gained.

Chinese New Year celebrations closed down the Hong Kong and Shanghai Stock exchanges. This has no effect on the trading of Chinese stocks listed on U.S. exchanges. The China ADR Index (CAI) gained 21.14 points on Thursday, fueled by strong gains in the telecom sector, particularly CHL.

1:00 pm : The major indices are trading near their best levels of the session after a broad-based rebound. Baidu.com Inc. (BIDU) came back especially strong lifing the China NASDAQ ADR Index or CQI. China's solar companies are showing some strength, JA Solar Holdings Co. (JASO) and China Sunergy Co. (CSUN) in particular.

Chinese stocks pulled back on jittery U.S. market sentiment after a Federal Reserve official suggested rising inflation could prevent the central bank from making further interest rate cuts. The measure for the performance of Chinese stocks on U.S. exchanges, the China ADR Index (CAI), lost -29.34 points today to close at 838.4.

National Development and Reform Commission (NDRC) admitted yesterday (on the 28th) in the “Year 2007 economic news conference” that in 2008, prices will continue to rise. This will have effect on the consumer market prices as they will continue to increase.

The biggest driver of Chinese economic development is export, and the U.S. is the second biggest trading partner with China. If the U.S. slows down, I think consumer products will definitely feel it seriously. Chinese officials have stated that the U.S. slow-down would have a negative effect on Chinese export. Of course, we can say, there are still other countries, but in my opinion, they do not have as strong consumption power as the U.S. has. The trading relationship between us and EU is not quite good. The EU committee has issued a number of policies against importing Chinese goods, such as, anti-products-dumping.

This article is just too funny. I just turned bearish on Yanzhou Coal for the short-term, telling investors in my Newsletter that power outages in China is partially blamed on coal mines and Beijing is considering to interviene in coal prices to keep supply abundant for power generators.

Shares of Chinese companies listed on U.S. exchanges experienced one of the worst month in history. The China ADR Index (CAI), an overall barometer for the performance of all Chinese equitites listed on the NYSE and NASDAQ combined, lost -15.60% and the last trading day hasn't started yet.