AsiaInfo-Linkage's Shares Jumped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of telecom software and services specialist AsiaInfo-Linkage (NAS: ASIA) gained as much as 11.5% on mild trading volume on Monday.

So what: This stock has a history of making large moves on very little news. Today's action falls in that general category, though fellow Chinese networking plays including E-Commerce China Dangdang (NYS: DANG) and Youku (NYS: YOKU) also notched nearly double-digit gains today on news that China might adjust the value of the yuan.

Now what: That volatility is both the thrill and the downside to investing in AsiaInfo-Linkage or many of its peers. You just never know what you're gonna get. Here's what I'd suggest if you're really interested in Chinese technology stocks: Learn all you can about one sector, identify the absolute top dog in that market, and make sure that the balance sheet will keep it alive for at least a couple of years. Then add that stock to your Foolish watchlist -- and wait for the next massive drop so you can open a low-risk position.

Interested in more information about AsiaInfo-Linkage? Add it toMy Watchlist.

At the time this article was published Fool contributorAnders Bylundholds no position in any of the companies discussed here. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. You cancheck out Anders' holdings and a short bio, follow him onTwitterorGoogle+, or peruseour Foolish disclosure policy.

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