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Interested in the possibility for growth that emerging markets stocks can offer? If so, you may be interested in this list.

We ran a screen on US-traded stocks of companies based in China. We screened these stocks for those with the most significant net institutional purchases over the current quarter, indicating that institutional investors such as hedge fund managers and mutual fund managers expect these stocks to outperform.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will outperform like hedge funds expect? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. E-Commerce China Dangdang Inc. (NYSE:DANG): Operates as a business-to-consumer e-commerce company in the People's Republic of China. Market cap of $560.44M. Net institutional shares purchased over the current quarter at 5.5M, which is 19.75% of the company's 27.85M share float. The stock has had a good month, gaining 53.03%.

2. Home Inns & Hotels Management Inc. (NASDAQ:HMIN): Develops, leases, operates, franchises, and manages a chain of economy hotels in the People's Republic of China. Market cap of $1.35B. Net institutional shares purchased over the current quarter at 3.7M, which is 15.24% of the company's 24.28M share float. The stock is a short squeeze candidate, with a short float at 14.26% (equivalent to 19.18 days of average volume). The stock has had a good month, gaining 10.3%.

3. China Kanghui Holdings (NYSE:KH): Develops, manufactures, and markets orthopedic implants and associated instruments. Market cap of $403.88M. Net institutional shares purchased over the current quarter at 1.1M, which is 10.19% of the company's 10.79M share float. The stock is a short squeeze candidate, with a short float at 11.24% (equivalent to 31.8 days of average volume). The stock has had a couple of great days, gaining 9.94% over the last week.

4. Sohu.com Inc. (NASDAQ:SOHU): Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Market cap of $2.30B. Net institutional shares purchased over the current quarter at 2.6M, which is 8.72% of the company's 29.82M share float. Might be undervalued at current levels, with a PEG ratio at 0.81, and P/FCF ratio at 10.62. The stock has had a good month, gaining 18.82%.

5. Simcere Pharmaceutical Group. (NYSE:SCR): Develops, manufactures, and markets branded generic and proprietary pharmaceuticals in China. Market cap of $494.80M. Net institutional shares purchased over the current quarter at 1.2M, which is 8.21% of the company's 14.62M share float. The stock has had a good month, gaining 16.2%.

6. China Real Estate Information Corporation (NASDAQ:CRIC): Provides real estate information and consulting services, online services, and real estate advertising services in the People's Republic of China. Market cap of $704.21M. Net institutional shares purchased over the current quarter at 835.2K, which is 7.06% of the company's 11.83M share float. The stock has had a good month, gaining 24.26%.

7. Ctrip.com International Ltd. (NASDAQ:CTRP): Provides travel services for hotel accommodations, airline tickets, and packaged tours in the People's Republic of China. Market cap of $3.93B. Net institutional shares purchased over the current quarter at 9.1M, which is 6.86% of the company's 132.65M share float. The stock has had a good month, gaining 18.41%.

8. Giant Interactive Group, Inc. (NYSE:GA): Develops and operates online games in the People's Republic of China. Market cap of $922.26M. Net institutional shares purchased over the current quarter at 5.0M, which is 5.20% of the company's 96.09M share float. Offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.49%, current ratio at 2.19, and quick ratio at 2.19. The stock has lost 4.98% over the last year.

9. AutoNavi Holdings Limited (NASDAQ:AMAP): Provides digital map content and navigation and location-based solutions in the People's Republic of China (PRC). Market cap of $511.53M. Net institutional shares purchased over the current quarter at 1.2M, which is 5.01% of the company's 23.94M share float. It's been a rough couple of days for the stock, losing 5.86% over the last week.

10. 51job Inc. (NASDAQ:JOBS): Provides integrated human resource services primarily in the People's Republic of China. Market cap of $1.28B. Net institutional shares purchased over the current quarter at 437.7K, which is 4.87% of the company's 8.99M share float. The stock is a short squeeze candidate, with a short float at 5.51% (equivalent to 6.89 days of average volume). The stock has lost 20.48% over the last year.

11. Ambow Education Holding Ltd. (NYSE:AMBO): Provides educational and career enhancement services in high school entrance examination and college entrance examination markets in China. Market cap of $538.16M. Net institutional shares purchased over the current quarter at 963.2K, which is 4.48% of the company's 21.48M share float. The stock has had a couple of great days, gaining 7.09% over the last week.

12. Qihoo 360 Technology Co. Ltd (NYSE:QIHU): Provides Internet and mobile security products in the People's Republic of China. Market cap of $1.97B. Net institutional shares purchased over the current quarter at 2.5M, which is 3.48% of the company's 71.82M share float. The stock is a short squeeze candidate, with a short float at 5.83% (equivalent to 5.65 days of average volume).

*Institutional data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: Hedge Funds Love These 12 Chinese Stocks