Dear Fellow Investor,

It's hard to believe that after seven years of planning and $40 billion that the Beijing Summer Olympics are already over. But what an exciting two weeks it was!

If you watched any of the competition over the two-week span then you know the first week was dominated by American swimmer Michael Phelps and the second week belonged to Jamaican sprinter Usain Bolt. Both displayed incredible athleticism with Phelps earning a record-breaking eight gold medals (seven of which were in world record time) and Bolt claiming three gold medals and setting world records in all three races.

Overall, I was thoroughly impressed by the athletic competition during the Beijing Olympics. China claimed 51 gold medals and 100 medals overall, while the U.S. won 36 gold medals and 110 medals overall. China dominated many of the individual competitions, including gymnastics, weightlifting and diving. And the U.S. did very well in team sports, including the men's and women's basketball teams, the men's and women's beach volleyball teams, the women's soccer team and the men's indoor volleyball team.

While there was so much incredible competition during the Olympics, I would say the highlight of the Games for me was the women's 4x400-meter relay. As you may already know, I attended the last few days of the Olympics in Beijing, and this relay was one of the events I observed from ringside at the Bird's Nest Stadium. It was the most exciting race I have ever seen with the U.S. anchor Sanya Richards surging past the Russians in the final second of the race to win gold.

Here I am at the Bird's Nest Stadium in Beijing.

Now, I could spend hours discussing the athletic highlights and achievements of these Olympic Games. But I know, at this point in time with the Olympics now a fond memory, what you're really wondering about is the state of the Chinese economy and stock markets post-Olympics.

While the Beijing Olympics were a huge success -- in my opinion -- contrary to what most investors were expecting, the Games didn't boost the Chinese stock market. Year to date, the Shanghai exchange has actually lost 54% and the Hong Kong Hang Seng index has declined 24%.

Another Blow-Out Quarter

If you recall, last week we focused on one of my favorite China Strategy companies. And for good reason – the company was reporting earnings this week and I was expecting another blow-out quarter. And I was right! This medical devices manufacturer reported that its net revenues in the second quarter increased 99.5% over last year's second quarter. And revenues in China alone increased 59% over last year. This marks the fifth consecutive quarter that this company has grown revenues in China by more than 40%. This company has been a strong performer since I recommended it just two years ago, handing my China Strategy subscribers 134% gain. To find out how you can profit from this company's next move higher, join China Strategy today!

In all actuality, the Olympics helped slow down economic growth in the country. Sure, the Games helped increase infrastructure spending in the years leading up to the event. But in the weeks and months before the Games, many factories and shops in and around Beijing were closed and travel outside of the Olympics was discouraged. Plus, with the majority of China focused on presenting a safe and successful Olympics, many economic activities in the country came to a standstill.

Now that the Olympics are over, though, China has a great opportunity to prosper. That's because inflation in China is finally under control -- just this week, China's National Bureau of Statistics reported that consumer inflation should ease even more in the upcoming months as food and oil prices decline. The country is projecting an average of 4.8% for 2008.

And with inflation under control, the Chinese government can return its focus to stimulating economic and financial market growth again. So I think Chinese stocks are approaching a bottom, and in the final months of 2008, we should see stocks resume their uptrend.

Actually, I expect Chinese stocks to begin rebounding in the next three months with a full turnaround in the next six to nine months. That's why it's so important to start preparing for this upward move now by establishing a firm position in Chinese stocks that will lead the upcoming turnaround.

Now is not the time to be timid about investing in China -- if you don't act now and buy in before this move really gets underway, you're going to miss out on some incredible profits. Please remember, though, that not every Chinese stock is going to participate in this move higher, so you need to ensure that you own the right stocks.

I'm getting my China Strategy subscribers ready for the upward move by loading up on three companies that I'm expecting to truly outperform in the next three to six to nine months. And while I typically reserve this type of important information for my subscribers, I don't want you to miss this great opportunity to fill your pockets with green. So let me give you a brief overview of my top three stocks right now.

Top Pick #1: This is my favorite company to take advantage of Chinese stocks move higher. It is the domestic leader in the Chinese security and surveillance technology industry. The company has all the parameters I like when recommending a stock: It was started by private entrepreneurs, is a leader in a fast-growing industry, has earnings that are growing more than 80% a year, and is trading at an attractive valuation. My China Strategy readers are already sitting on a 13% gain in just two weeks. To learn more, join China Strategy today!

Top Pick #2: This company has been one of my top companies for nearly two years now. It's the number-one medical device manufacturer in China, and because it operates in a booming market, it consistently delivers strong earnings growth (as we discussed last week). High-quality medical care is quickly becoming a huge priority to China's growing middle class, and this company is a direct beneficiary of this trend. It's up 134% for my China Strategy subscribers, and I think that's just the beginning. To find out how you can catch the next double in this company, join China Strategy today.

Top Pick #3: Now this one may surprise you -- it's the leading insurance company in China. The insurance industry in China is actually growing at a solid 15% a year, and the amount of Chinese with insurance is well below the global average of 5%. That means there's plenty of opportunity for this company to benefit from China's expanding middle class's need for insurance -- especially since I believe China will eventually become the largest insurance market in the world. This company is up 20% so far for China Strategy subscribers. Join China Strategy today and find out how you can take advantage of this fast-growing trend.

And there you have it -- my three favorite companies to take advantage of Chinese stocks move higher in the next six to nine months. The key to maximizing your profits is to start preparing now. Join China Strategy today and I'll guide you to the most profitable opportunities during this exciting time.

Robert Hsu