Market keep going down, so what to buy? after you read the link regarding the ADR, let me offer you this advice.

If Investment Bank brought a Chinese company XYZ 10,000 shares at $$50 RMB at current exchange rate of 7.6x, it will list say at ratio of 10:1 shares, that’s 10x$$50/7.6=$65.79 dollars per 1 ADR of 10 XYZ chinese stocks. Ignore all underlying market and company movements, single out the exchange factor, the exchange between RMB and Dollar will continue to decrease, say 1 year from now, RMB will trade at 7x. (it’s less than 5x in float right now) that same 1 ADR of 10 XYZ will worth 10*$$50/7=$71.43, a gain of 8.57%, so take advantage of this pegged exchange ratio.

of course, what i failed to mention is the inflation.  inflation reduces purchase power.  I haven’t fully research on chinese inflation and us inflation numbers. but I am thinking, the exchange rates outweight the inflation by far.