These are exciting times for China! Today, the curtain was lifted on the opening ceremonies for the Beijing Summer Olympic Games, and now, all eyes are on China! For the next two weeks, people all around the globe will be watching the biggest athletic competition in the world, taking place in one of my favorite cities–Beijing.

And I am especially excited because I will get to watch the Games in person during the competition's second week. As a native Chinese living in the U.S., I want both countries to perform well–I am really rooting for the U.S. men's basketball team and the Chinese men's ping pong team to take home the gold.

But I am rooting for the Chinese stock market to perform well, too. That's because the 2008 Olympics is the country's "coming out" party –it is China's chance to show the world its newfound modernism, power and wealth, and prove that, after centuries of economic downturn, it is ready to join the ranks of other world economic superpowers (see also, "Investing in China: Separating Fact From Fiction").

As an investor in China's economic growth, countless investors have asked me what I expect from Chinese stocks after the Beijing Olympic Games. Many investors know that most Olympic host countries experience stock market success in the years following the Games, but many are wondering, will the Chinese stock market have the same double–and triple-digit increases that Spain, the U.S. and Greece enjoyed in their post-Olympic years?

The simple answer: yes. I think that there are several factors in line to create this bullish "Olympic effect," and I think we will see high-quality Chinese stocks, like the ones I recommend in China Strategy, to perform exceptionally well. Let's look closer at these positive factors supporting the Chinese stock market, and how you can profit from China's Olympic success.

Three Factors Supporting China's Stock Market

In recent years, China has enjoyed extraordinary economic progress. The country turned a negative GDP rate from the 1970s into today's double-digit growth of about 10.0%. And it is experiencing a boost in consumer spending, even as the U.S. economy slows. In fact, Chinese domestic consumption is up 20% this year, while domestic production should have growth of over 15% this year.

This progress comes with great timing, as the commercialization of the Olympic Games is providing an opportunity for more growth in China's consumer spending– and economy. The Games have become a popular platform for advertisers and sponsors, and their marketing will likely boost domestic consumption after the Olympics. And consider all of the business that China will experience from tourists during the Games and even after once people realize the country is an exciting travel destination with a lot to offer.

In addition to China's growing economic strength, the second factor supporting the Chinese stock market is the country's lower inflation rate. In the past 18 months...