Chinese Stocks Soaring As Worries Subside A Bit

Chinese stocks that had been hit by the likes of Sino-Forest and other frauds are rising sharply today, as the major market averages are all up roughly 1% on the day. Names like Baidu.com, Inc. BIDU, Sina Corporation SINA, Shanda Interactive Entertainment Ltd ADR SNDA and others are moving higher today, all to the tune of roughly 4%. Recently, all Chinese stocks have been hurt as anything China-related has been grouped by traders and sold off in abundance. It looks as if this has stopped though, with the moves being seen today. Muddy Waters had negative research on Sino-Forest, essentially labeling the company a fraud, and heavy hitters, such as John Paulson lost hundreds of millions as the share price fell sharply. Paulson & Co., Paulson's hedge fund, lost roughly $107 million in the stock. Paulson is famous for betting against the U.S. housing market late last decade and making billions off it.