I recently heard someone compare investing in China to "the Wild West." This is actually a very accurate description. China is the new frontier of investing, and it's a dangerous place for people who don't know the financial landscape. But for those of us who know the financial terrain, the culture, and have spent years investing in the region, China is a gold rush for investors.

A major driving force behind the Wild West analogy is the booming IPO market. I get asked about these types of investments all the time. There have been quite a few of them over the last two years, and there's likely to be many more to come.

One of the questions that I get most often from investors is "How can we tell if a newly offered China stock is worth buying?"

Evaluating an IPO is probably more of an art than an exact science. Because I've been doing it for so long, I've developed a rigorous process of evaluating these new listings.

It means big profits—fast—for China Strategy subscribers. Interested in learning more about these winning IPOs delivering large and rapid gains?

One month ago, the U.S. markets were in the thick of the credit crisis. On Thursday, August 16, the Dow experienced an extreme spasm of volatility, opening at about 12,860 and then dipping all the way down to 12,455 before finally closing just 15 points lower than the previous day.

China is now less than one year from its Olympic debut. As we'll see in a minute, this event is stimulating consumer spending throughout China to a stunning degree, but the leading beneficiaries of easy money in China are the companies actually building the Olympics infrastructure. And there's still a lot to build.