Long-time subscribers know of my affinity for Chinese stocks. I don't look at Chinese stocks as investments, but as risk-capital speculations on growth. If I were in the business of trying to make money speculating in stocks, I'd own a handful of Chinese stocks. If I sold a business and had money to invest for long-term growth, I would invest in blue-chip stocks.

It's very difficult not to get enthusiastic about Chinese stocks. Not only is there serious growth to be had from that economy, but the business opportunities are also just plain outstanding. The Chinese economy is being westernized and with this comes opportunities for industry consolidation and brand-making. As investors, we can make a lot of money capitalizing on these real trends in the Chinese economy. The good news is that all kinds of Chinese companies are continuing to list on U.S. stock exchanges. This gives us the kind of opportunity we wouldn't have otherwise.

One of my long-time favorite China investments is China Security & Surveillance Technology, Inc. (OTCBB/CSCT). This company recently received preliminary approval to list its shares for trading on the New York Stock Exchange.

All kinds of customers in China, both government and corporate, are spending big dollars on security and surveillance technology. Just imagine the amount of highways in China's major cities and the number of surveillance cameras needed. Standards are changing in China and, with this change, come massive amounts of spending by well-heeled organizations.

China Security & Surveillance Technology generated revenue growth of a whopping 551% in the second quarter of 2007. Total revenues grew to fifty-two million dollars, up significantly from revenues of $8.0 million generated in the second quarter of 2006. Net income grew 72% to $4.3 million, up from net income of $2.5 million generated in the second quarter of 2006.

Recently, China Security & Surveillance Technology signed an $8.5-million contract with the City of Binzhou in Shandong Province. The City of Binzhou (approximately 3.7 million people) is a new customer for the company. The contract calls for the installation of a city-wide security, surveillance and alarm system infrastructure. The company will also be supplying traffic- management equipment throughout the city.

Great opportunities don't occur that often in the stock market and I think China Security & Surveillance Technology is one of them. It's still a high-risk investment, but, then again, everything is when it comes to stock market speculating.