Chinese stocks are red hot, and three of the hottest stocks of late are in the small-cap segment of the Chinese market. How hot are we talking about? Well, how about recent gains of 26%, 28% and 59% — in just the past five sessions.
Oh, have I got your attention now?
The potential for big gains in Chinese small caps is something I’ve been expecting, and I recently wrote about some of the factors that are likely to keep Chinese stocks powering higher for the rest of the year. Many of these factors — the Shanghai-to-Hong Kong convergence trade, low relative valuations and the promise of government stimulus to keep China’s domestic market growing — all are tailwinds for small-cap Chinese stocks, as traders continue to pile into many names that are little-known to mainstream U.S. investors.
Yet for traders and/or investors looking to ride a distinct momentum wave for short-term gains, now is the time to check out Chinese small caps along with all of the fast money pouring into the space. So, which companies actually are putting in those aforementioned massive gains?
Here are three hot stocks in the Chinese small-cap segment that you should chase right now: