China Direct Inc. (AMEX: CDS) is a management and consulting company that both provides consulting services to public Chinese companies as well as acquires controlling stakes in Chinese firms with the intent of using the position to better direct and manage the business.

Though China Direct focuses specifically on mid-size Chinese companies, it still represents a play on the Chinese economy as a whole - which is almost universally seen as a very attractive investment.

Though China's GDP has been notoriously difficult to pin down precisely due to government manipulation of the numbers and other statistical factors, it is generally accepted that China has been growing at an astonishing annual rate of approximately 9% since the late 1970's, with GDP growth in the last three years averaging an even higher 10%.

China Direct is particularly poised for growth as it was just listed on the American Stock Exchange on September 24th. This was an important symbolic step representing the company's permanence and market cap, now exceeding $130 million - but it also plays a practical role in the company's future.

New merger and acquisition regulations in China would have prohibited China Direct from using its OTC shares for purchasing stakes in Chinese companies; however, China Direct can now use equity for future investments due to its listing on AMEX.

The listing of China Direct on AMEX combined with the recent performance of Jinwei, a subsidiary of China Direct that produces magnesium, has sent China Direct's stock price up almost 50% this week.