Don't look now, but Chinese stocks may be clawing their way back into favor.
Facing a slowing economy, China's government is ready to rely on stimulus to make sure that the world's most populous nation doesn't follow Europe into a money-slurping slump.
Some of last week's biggest winners were Chinese stocks.
Let's take a closer look at some of the Chinese companies coming through with double-digit percentage gains last week.
7 Days Group Holdings (NYS: SVN)
China Kanghui (NYS: KH)
Vipshop (NYS: VIPS)
Ambow Education (NYS: AMBO)
NetEase.com (NAS: NTES)
Hotel operator 7 Days Group was China's biggest winner, soaring 26% after a consortium of investors led by the hotelier's own co-chairmen struck a deal to take the company private.
China Kanghui was another buyout winner. The Chinese orthopedic implant maker popped after receiving an $816 million acquisition offer from Medtronic.
Vipshop moved higher despite a lack of news. The fast-growing online retailer isn't yet profitable, but it's trading at just 10 times next year's bottom-line forecast. That's pretty cheap for a company that grew its revenue by a whopping 234% in its most recent quarter.
Ambow Education is a provider of educational and career enhancement services. The Beijing-based educator climbed after an Oppenheimer analyst had some encouraging words to say about the country's top educator, New Oriental Education.
There wasn't any company-specific news pushing NetEase higher, but it's hard to argue against the dot-com darling's compelling valuation. One of China's leading online gaming companies is only trading for 13 times this year's earnings and 11 times next year's projected profitability. NetEase is growing at a headier clip than that low multiple seems to suggest.
Betting on China
There's plenty of growth still to be had if you buy the right Chinese growth stocks. Last week's winners bear that theory out.
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The article China Stocks Are Hot Again originally appeared on Fool.com.
Rick Aristotle Munarriz has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend NetEase.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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