There is a slowdown taking place in China's economy, but the infrastructure growth in that country is so large that a recession in China means GDP growth of nine percent instead of 12%. As an investment analyst, I've always been amazed at the growth that some of these companies are generating and it's not just the top-line; profitability in a lot of Chinese companies is exceedingly high.

It's very reasonable to conclude that even the most blue-chip Chinese stocks are highly speculative securities. These stocks can be volatile and can create or eliminate fortunes in a matter of weeks.

A lot of individual investors have abandoned the equity speculation business because of the current correction. I'm thinking that the next 12 months would be the ideal time to create a new portfolio or investment fund that specializes in U.S.-listed Chinese growth stocks. Naturally, this would be entirely a risk-capital venture.

Even though growth expectations for a lot of these companies are being reduced, I think it's fair to say that, comparatively, they are still growing by leaps and bounds. Barring any unforeseen events, a mixed portfolio of these stocks could do very well over the next few years.

China is still a very insular country, and its latest infrastructure spending program initiated by the government will go a long way to helping Chinese companies with large domestic operations. Clearly they can afford the spending. More so, however, the latest stimulus package is helping to restore confidence in the marketplace. In earnings press releases, you can already notice that a lot of U.S.-listed Chinese companies are citing the new stimulus package as a real boon to the economy and their businesses.