Dear Fellow Investor,

China stocks are on the move! And you don't want to miss this race.

Despite the more than 200-point drops in the Dow in recent weeks, Chinese A-share stocks listed in Shanghai have quietly rallied 10% from their recent lows. And in the next four weeks leading up to the Beijing Olympics, I'm expecting an even bigger rally.

You're probably a little surprised by my bullish attitude -- especially considering that most investors are pulling their bear suits out of the closet. Not to mention the Olympics rally that everyone's been expecting all year has remained elusive.

Let me explain. The oversold condition of the domestic markets, the negative second-quarter earnings expectations and improving liquidity in the Chinese stock market all coupled together have the ability to push stocks around the globe higher.

Plus, the long-awaited Olympics rally is a reality that is going to take place in the next four weeks. For all these reasons, I'm truly more bullish on global stocks now than I have been all year. And I'm expecting Chinese and U.S. stocks to lead the charge.

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Lowering the Bar

Second-quarter earnings reports are, in particular, going to boost global markets in the coming weeks. Everyone's so discouraged right now, that there are low expectations for this earnings season.

Bloomberg is expecting earnings for S&P 500 companies to be down for a fourth-straight quarter, by 11.2%. It also expects a continuation of lower profits, as it has fallen 16%, 23% and 2.5% in the most previous three quarters, respectively.

But with the bar lowered, companies now have a greater chance for positive earnings surprises, as well as the increased likelihood of beating expectations. This will be great news for the markets, and because of it, I am cautiously confident that we might have a market bounce in the near future.

How Do We Profit?

I am particularly bullish on China right now. Chinese stocks have experience a 45% correction and are now trading at only 13 times this year's earnings. This attractive valuation, added with strong earnings momentum -- still growing at an average of 20% a year -- are set to propel the Chinese market forward.

And that's why I think one of the best ways to take advantage of the upcoming rally is in a Chinese investment.

While I typically prefer to recommend individual stocks, I think the best way to fully profit from the upcoming rally is in a broad-based Chinese ETF. My China Strategy subscribers already locked in a 23% gain in this fund last year, when we were taking advantage of the red-hot Chinese A-share market.

Since I'm expecting China's state-owned financial companies to benefit the most from the upcoming surge, this ETF is once again a viable investment. Commercial banks make up 25% of the fund, and some of its largest holdings include China Construction Bank, China Merchants Bank and Industrial & Commercial Bank of China.

To profit from the upcoming rally in Chinese stocks and for my specific buy advice on this China ETF, join China Strategy today!

Robert Hsu