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Since my first article about Chinese "lottery tickets" was so well received, I've decided to bring it back for an update. NetEase.com, Inc. (NASDAQ:NTES) is the only ADR to show up on the list twice. Good luck.

I have always been fascinated with Chinese stocks trading on U.S. exchanges. This fascination has cost me dearly. If I had never seen or heard of a Chinese ADR, my portfolio would be about 40% higher than it currently is. I'm a sucker for a great growth story. And the idea of a communist country transitioning to a capitalist model made my mind run like crazy. I thought investing in China during 2004-2008 was going to be like investing in the USA circa 1920.

I was horribly wrong, but not because I made some horrible economic forecast or made a faulty calculation - I was wrong because most Chinese corporations see the world differently than most American corporations do. They believe that the more opaque a picture you show, the more money and more opportunity for riches. They do not have our corporate governance standards and they will employ whatever tactics they can when given the opportunity. Of course I am making a huge generalization about many corporations in a country with 1.6 billion people. But from my experience (a sour one), this is the conclusion I have come to. My mind is open and I hope to one day come to a different conclusion.

All that being said I cannot stop searching for the next Chinese company trading in the United States to prove me wrong. I ran a screen looking for fairly liquid Chinese ADRs that are trading above their 20-, 50-, and 200-day moving averages. I would love to analyze these companies based on a ratio or two but that exercise would be pointless, we still cannot trust the numbers. Think of this as buying Chinese lottery tickets, here are seven games to choose from.

This screen is courtesy of finviz.com.

(Click to enlarge)

Source: 6 More Chinese Lottery Tickets