China Netcom (NYSE:CN) moved up more than 14% today on rumors that the company could be bought out by China Unicom (NYSE:CHU), even though both companies immediately dismissed claims of negotiations between the two companies. Meanwhile, the broader Hong Kong market also continued its rally, moving to record highs today. Many attribute these moves to recent rallies in the Chinese domestic market combined with new favorable tax policy that would institute a unified flat tax rate of 25% for foreign and domestic companies.

Other stocks experiencing a rise in recent weeks include China Life (NYSE:LFC), Ping, The Industrial and Commercial Bank of China, and many others on the HK exchanges. Overall, Chinese companies (and their ADR counterparts trading on the NYSE) continue to perform extremely well.