Ctrip.com International (CTRP): Ctrip.com is one of China’s leading producers of travel retailed services, including hotel and airfare accommodations. Revenues have grown 50 percent year-over-year, as sales have increased 300 percent year-over-year. As the demographic trend from lowering class to middle class increase, the Chinese middle class are the avenue for domestic flights going forward. Ctrip.com is growing revenues at 40 percent year-over-year in tier one cities with a population of more than 10 million people, and 50 percent year-over-year in tier two cities. Moreover, the company gets subsidizes for its cost of jet-flue, which helps the company better predict cash-flows, and increases operating margins. As the Yuan & Renminbi are revalued at higher levels, domestic companies like Ctrip.com will also be aided by a positive currency conversion. Shares of Ctrip.com have had a 52 week trading range of $70.89 to $16.41 and are currently trading at $30.13

China Medical Technologies (CMED): China Medical Technologies is one of the China’s leading medical instrument and supply companies in the country. On top of China’s recent 4 trillion yuan ($586 billion) stimulus package, China has a 5 year plan in which the government will invest $3 billion in healthcare---of which $1 billion will be for medical equipments. It is widely expected smaller hospitals will receive a sizeable chunk, as Beijing hopes to improve healthcare in more rural areas. On March 25th 2008, China Medical was awarded the ‘Conformite Europeenne Mark’for ECLIA analyzers and 15 reagents, including reagents for thyroid disorders, diabetes and tumor markers. The CE Mark indicates the product meets the standards of the Diagnostic Directive [IVDD] of the European Union. In a statement, Mr. Xiaodong Wu, Chairman and CEO of the Company, said “the approval would give China Medical access to new markets and give it added prestige in China”. Shares of China Medical Technologies have had a 52 week trading range of $55.24 to $11.41 and are currently trading at $19.28

Sohu.com (SOHU): Sohu.com provides online and wireless products in the People's Republic of China. Web properties include Web page search, music search, and news search. Wireless products focus on entertainment information, communications, online games, and e-commerce. Beijing based SOHU reported blockbuster results in 2008. Revenue and earnings grew substantially, exceeding market expectations and guidance in almost every product area. The stock itself is dirt cheap, selling at just 9.9x next year’s earnings, with a historic growth rate of 42% annually. Sohu.com has $314 million dollars in cash, or just over 1/6th its entire market cap in cash, which equals $8.249 per share in cash. Management and corporate insiders own 25.02% of the company as well---putting their financial interests directly inline with that of the common equity shareholders. Sohu.com also has a 19% short position.

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