Watch List: Five China Stocks for This Week

1) Kiwa Bio-Tech [KWBT.OB] - this company has been quietly testing a bird flu prevention aerosol spray and feed additive designed for the poultry industry. With new cases in China and a possible human-to-human transmission, the need is greater than ever. I'm expecting news from the company soon.

2) Skystar Bio-Pharmaceutical (SKBI.OB) - Skystar is developing a bird flu vaccine that could be ready for commercialization in late 2008. Note that the Chinese authorities recently passed a law making it compulsory (starting 1/1/08) for all livestock and poultry to be vaccinated against diseases transmissible to humans. I presume that includes bird flu, and if so, it is a huge market.

3) Zhongpin (ZHNP.OB) - One of the company's competitors' canned pork product (essentially Chinese SPAM) has been recalled and banned from export, after trace amounts of the cancer-causing antibiotic nitrofurans were found. With the current toy recalls and now worries over food, how will this affect Zhongpin, which, despite its respected brand, exports to Europe and other parts of Asia?

4) China Medicine (CHME.OB) - well, it seems having an IR firm is better than not having one, even if nothing much has transpired. The sleepy stock charged through the $3 mark with a gain of more than 15% on Friday. What's next?

5) MyStarU [MYST.OB] - did you know that its subsidiary Subaye.com currently ranks as the 3,149th most trafficked site in China? And when you re-arrange the letters you get "Us, Ebay"? Further, do you realize that "Subaye" in Mandarin means "counting in the hundreds of millions", a close approximation of the meaning of "Google"? These people have big ambitions.

My Position: None.