"Since then, their indexes have dropped substantially, nearly 40%, much more than the S&P 500. Investors in Chinese equities have taken a bath over the last year. But that doesn't mean it's over for Asian giant. So why is it time to consider China again?

#1 The Olympics, And Then Some

"For one, the Olympics will showcase China to the world. In the next 18 days, the Middle Kingdom will host more visitors in its cities than at any time in history.

"Half a million wealthy attendees from all over the globe will descend upon Beijing, Shanghai, Qinhuangdao, Shenyang, Tianjin and Hong Kong en masse.

"It will be a unique opportunity for China to highlight its stability and economic viability to international business leaders after growth-stunting decades of Mao-led Communism.

"But that's not all. In 2010, the World Expo in Shanghai and the Asian Games in Guangzhou are expected to bring in more visitors and stimulate more construction than even the Olympics. China has already spent nearly $35 billion on the Olympics.

"They are expected to spend more on the other two events. What does this mean for the Chinese economy? In the words of the U.S. Government: economic stimulus.

"Since 1988, the host country's stock market rose an average +38% in the year following a Summer Olympics. The Chinese market has been down since last October. But China won't be down forever.

#2 Chinese Government Intervention

"Since 1978, China has been revamping its infrastructure to be more business-friendly. The government realizes that cash is king in international finance.

"Their government has been raising capital by depressing their domestic currency (yuan) and increasing exports to countries like the U.S.

"It's worked. As of May, China reportedly has $1.6 trillion on hand to stimulate their economic interests. Recently, the Chinese Government has been strategically deploying cash to protect their market.

"In the past few months, efforts have begun to take root, no doubt as a result of Chinese government intervention. China seems ready to defend investors against any further decline.

#3 Chinese Consumer Strength

"Just like in the U.S., Chinese consumers are the backbone of the economy. However, Chinese consumers are not like American consumers. Consider this.

"The average Chinese household saves 30% of their wages. That's why most houses and apartments in China have been purchased in cash – a big difference from the debt-leveraged, subprime-laden U.S. economy.

"Cash-rich Chinese consumers can afford to spend more, because they have more to spend. It's just a matter of convincing consumers to part with savings for more goods and services.

"That problem is easier to solve than funding an economy with more debt. That's why China looks more attractive than any other investment on the horizon.

"The best way to buy China is through iShares FTSE/Xinhua China 25 Index Fund (ASE: FXI). According to Barclays, this ETF 'seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 Index.'

"Right now, it looks very attractive. The recent chart shows consolidation with an apparent double bottom in place. Trading over 19 million shares per day, FXI is the most liquid Chinese ETF available.

"We think getting in just before the Olympics is a great opportunity to profit from the buzz of the Olympics and the underlying strength of the Chinese economy. To buy into China at a good low, go with FXI."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.