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It is not all doom and gloom, but for holders of Benda Pharma (OTC:BPMA) and Guilin Paper [GUPR.OB], this is little consolation. Both stocks hit their 52-week rock bottom Wednesday, registering, respectively, $0.50 and $0.36 per share. I can understand why people are so bearish about BPMA, but the situation with Guilin Paper defies rational explanation.

A few other stocks skated close to their 52-week low too. China Medicine (OTCPK:CHME) came within $0.15 of its 52-week low of $2.20 by scraping $2.35 earlier Wednesday. China VoIP & Digital Telecom (OTC:CVDT) touched $0.45, barely above its low of $0.40 achieved just a week ago. And Mystaru.com [MYST.OB] bottomed at $0.135, frighteningly close to its low of $0.12 from last September.

Clearly it is a very jittery market, buffeted by uncertainties regarding the economy, what the Federal Reserve is going to do, high oil prices, and the continuing saga of the sub-prime fall-out. In fact, some believe that we're already in a recession.

Amid this panic however, many investors have brushed aside some salient points. China's economy looks very different compared to the U.S., and by investing U.S. dollars in Chinese companies, we're riding any currency appreciation of the RMB. And at the individual company level, how often do you see earnings growing at more than 100% per quarter?

Is it any wonder then that some stocks are actually hovering at the 52-week high? Yes, even during such uncertain times. Kandi Technologies (KNDI) traded as high as $5.10 Wednesday, almost brushing its record of $5.30 from October. Wuhan General (WUHN.OB) closed Wednesday at $16.00, just a hair shy of its 52-week high of $16.50. And finally, China Water and Drinks (CWDK.OB) registered a share price of $16.00 for the first time ever, unusual trading patterns or no.

Like many of you, I'm using this bear market to accumulate my favorite stocks. I think before long, and definitely by the summer, we'll be laughing our way to the bank.

My Position: None.

Source: China's Economy: A Whole Different Story