Chinese growth stocks stormed higher last week.
NQ Mobile continues its amazing run, soaring 26% on the week after climbing 17% a week earlier.
The provider of mobile Internet services took off after announcing encouraging preliminary results for its second quarter. NQ Mobile was forecasting no more than $38.8 million in net revenue two months ago for the period, but now it sees revenue surpassing $40 million for the quarter that ended in June.
NQ Mobile has managed to close higher for 11 consecutive trading days since releasing its upbeat report. You don't see that kind of streak too often.
Are investors finally ready to buy back into China? Are the high growth rates and often reasonable valuations enough to outweigh the geopolitical risks of buying into Chinese growth stocks?
Let's take a closer look at some of the other winners from last week.
Nam Tai Electronics
Nam Tai Electronics was one of this week's biggest winners, soaring 23% on the week. The contract manufacturer made the cut as one of my favorite stocks trading under $10 two weeks ago. Its push to make liquid display modules for smartphones last year has been a questionable call given the competitive climate, but last week's surprisingly robust iPhone shipments are getting investors excited about smartphone-related companies again.
Despite the run, Nam Tai's quarterly dividend of $0.15 a share leaves the stock currently yielding a healthy 7.4%.
Kandi Technologies made most of its move on Friday after announcing that the first 100 Kandi-Geely co-developed electric vehicles were delivered for the public car sharing system in Hangzhou City. A vertical parking and charging facility was recently completed to assist with the system.
Kandi shares soared last month after it announced its plans to develop electric passenger cars alongside Geely. The stock went on to more than double within a week at the peak, but it had given up most of those gains in recent weeks.
Baidu moved higher after delivering better-than-expected quarterly results. Revenue climbed 39% during the quarter, and the leading search engine's guidance calls for top-line growth to increase by at least 40% in the current quarter. Analysts certainly weren't banking on Baidu's revenue growth rate to accelerate.
Baidu shares had also moved 15% higher a week earlier after its proposed $1.9 billion acquisition of China's leading mobile apps marketplace operator.
Finally, we have Dangdang on the move. The Chinese online retailer continues to head higher as we approach next month's quarterly report. Dangdang has seen its shares more than double since bottoming out three months ago.
Dangdang is still at least a couple of years away from annual profitability, but analysts do see revenue climbing 26% and its deficit narrowing when it reports in two weeks.
Dangdang has been following the Jeff Bezos playbook in China. It began by stocking hundreds of thousands of book titles. It then went on to carry more media and general merchandise, eventually introducing a marketplace platform for third-party merchants.
The strategy appears to be resonating with investors now, though Dangdang is still trading below its IPO price of $12 from three years ago.
Betting on China
There's plenty of growth still to be had if you buy the right Chinese growth stocks.
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The article 5 Chinese Stocks That Soared Last Week originally appeared on Fool.com.
Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu. 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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