Dear Fellow Investor,

What's happening in China? As you know, the country is gearing up for next year’s summer Olympics. The event is now less than a year away, and the Chinese are working hard to make sure that everything is perfect for their debut in the world’s spotlight.

In last week’s Inside China Dispatch, we talked about the country’s Olympics-driven infrastructure boom and the metals company that’s profiting from it. This aluminum company has nearly tripled for my China Strategy subscribers in the year since we first bought it. Today I want to talk about another company that’s poised to benefit from the upcoming summer games.

China is building a lot of new facilities to prepare for all of the Olympics-related events, and somebody has to provide power for all of these new buildings. That somebody is the power monopoly in my China Strategy portfolio. (Click here to learn how you can become a member and get instant access to my complete list of China plays.)

This power company is one of the largest in China, and it just started operating a coal-fired unit with 600 megawatts of capacity in northern China to supply power for the Olympic Games. The unit will be located in Inner Mongolia, 100 miles away from Beijing. And it’s just the beginning of this company’s Olympic strategy -- our power play plans to install as many as eight more units in the area to prepare for next summer’s big event.

The company also wants to increase its electricity generation by 15% this year, followed by double-digit growth in capacity over the next couple of years. I believe it will accomplish this ambitious goal because its parent company is going to inject millions of dollars of assets into it over the next several years.

Another reason I like this company is because it stands to benefit from a consolidation trend in China's power sector. Going forward, I expect to see more and more local governments sell their power holdings because they find it too difficult to improve efficiency in China's fragmented power market. As China's leading power producer, our company’s economy of scale and regional monopolistic power gives it a strong competitive edge that should help it benefit from future deals.

The truth is that this power monopoly is the main beneficiary of China's increasing demand for electricity. China's solid double-digit growth depends greatly on generating power, and that's a need that won't go away any time soon. Let me give you an idea of China's surging demand for power: In just the last 18 months, China has increased its electrical generating capacity by the equivalent of Great Britain's total capacity. And Great Britain is the world's fifth-largest economy!

To get my specific buy advice on this power play, click here now. This company has it all -- monopolistic clout, aggressive plans for expansion, the potential for future assets from its parent company, and strong yuan-denominated assets. I expect all of these catalysts to drive shares higher in the coming months. Hurry and establish a position before the stock experiences a pre-Olympic run!