The stock market wants to rally right now and we certainly deserve a little upside after a terrible first quarter performance. I don't think it's the beginning of a new trend — only a bounce in what is still a correction.

There are all kinds of great companies out there trading at reasonable valuations. You could be a buyer in this market, but then again, you pretty much know that you wouldn't have the broader market behind you.

This is particularly the case at the speculative end of the equity market, where there are dozens of fast-growing, micro-cap companies. Investors are wary, however, and just aren't speculating on higher-risk names. In fact, most investors are continuing to sit on the sidelines. Most part-time speculators aren't even interested anymore. I suppose this means that the opportunities are getting better.

One small company that looks very interesting in this market is Fuqi International, Inc. (NASDAQ/FUQI). This micro-cap is a designer and distributor of jewelry in China. Based in Shenzhen, Fuqi sells a broad range of products such as gold, platinum and Karat gold (K-gold), as well as diamonds and other precious stones.

The company currently boasts some 20,000 unique products and has a nationwide distribution network with Chinese retailers. In the city of Shenzhen, in southern China, Fuqi has a large-scale production base that includes a modern factory of more than 53,000 square feet, senior design, sales and marketing personnel, and more than 600 employees.

In its latest fourth quarter, revenues grew 122% to just over fifty- five million dollars, up from revenues of just under twenty-five million dollars generated in the fourth quarter of 2006. Fuqi reported that it is experiencing a substantial increase in sales and that selling prices are going up.

Net income for the fourth quarter of 2007 grew a whopping 253% to $7.4 million, or $0.39 per diluted share, up from $2.1 million, or $0.15 per diluted share, in the previous year period.

Right now, Fuqi anticipates that 2008 will bring revenues of between two hundred thirty-five million dollars and two hundred fifty million dollars, as compared to 2007 revenues of more than one hundred forty-five and a half million dollars. Net income for 2008 is expected to be between fifteen million dollars and seventeen million dollars.

If consumers at home are keeping their wallets closed, they most certainly are not in China. This company is just another example of a fast-growing, U.S.-listed China stock with exciting prospects for the future.