Four China Stocks to Watch This Week

1) China Education Alliance (CEUA.OB) - despite little news, this stock closed at an all-time high on Friday, having risen 60% in two months. I'm really not sure what's happening, especially when CEDU (ChinaEdu), which went public on 12/11, traded down more than 20% on its first day. Isn't CEUA's volume quite low for such large spikes in recent weeks?

2) China Housing & Land Development (CHLN.OB) - with comparable Xinyuan Real Estate (XIN)'s spectacular IPO earlier this week, will investors take another look at CHLN and re-rate it upwards, given XIN's forward P/E is 19x compared to CHLN's approx. 11x?

3) China Public Security Technology (CPBY.OB) - this company had a whole slew of news late last week. First, its CFO resigned and was replaced. Then it announced the acquisition of Bocom, a display technology company. Finally, it raised its 2007 guidance: revenues from $32m to $34.5m, and net income from $12.5m to $13.5m. Why would the CFO resign one day before the company raises its guidance? This is completely unheard of.

4) Linkwell [LWLL.OB] - Linkwell announced that it has signed an LOI to distribute German company Energeta's disinfectant products through its sales network. Energeta is described as a "famous German-based company" in the company's press release, so why is its German website inactive, while its Chinese one so well done? What am I missing?

5) China 3C Group (CHCG.OB) - the company announced on Friday that its CEO had purchased 120,000 of the company's shares in the past month, including 20,000 on 12/13 at $3.60 apiece. CHCG closed at $3.52 on Friday. What does that tell us?

My Position: Long CHCG.OB.