Chinese Stocks Roar: Small Caps On Watch
Nicholas Santiago | Aug 07, 2012 12:25AM ET
Chinese stocks like Baidu.com, Inc. (ADR) (NASDAQ:BIDU), SINA Corporation (USA) (NASDAQ:SINA) and Sohu.com Inc. (NASDAQ:SOHU) all soared yeserday. Sohu reported better than expected earnings and the whole sector is seeing short covering. While these stocks have jumped too much for any intelligent trader to think about going buying, the key is to look at the smaller China plays. These may be the next runners.
Renren Inc (NYSE:RENN), E Commerce China Dangdang Inc (ADR) (NYSE:DANG) and Youku Inc (ADR) (NYSE:YOKU) are also all jumping. This leaves the small caps as the only possible plays to watch.
One small cap Chinese play that usually runs with the others is China New Borun Corp (NYSE:BORN). Place it on the watch list.
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