Looking at China stocks from a pure technical point of view, NASDAQ listed NetEase (NTES) looks the best followed closely by Baidu.com (BIDU) ans Sohu.com (SOHU).
As the following graph details, NetEase (NTES) is approaching its theoretical high while rally for Baidu,com (BIDU) looks more balanced and thus sustainable. Sohu.com is trading well above its trading range and looks more vulnerable then BIDU and NetEase.
Chinese stocks with strong momentum include but is not limited to: China Unicom (CHU), the second largest mobile carrier in the Mainland and China East Air (CEA), a Shanghai based Chinese airliner. China East Air was seen as the underdog compared to flagship carrier Air China and China Southern Air (ZNH). But the underdog status comes with lower valuation and value investors have stepped in to take advantage of the situation. Sohu.com and Sina Corp (SINA), the two largest Chinese web portals, are doing well following strong advertisement revenues. Sohu spun off its online game unit raising significant amount of cash on the NASDAQ last month.