At the beginning of the year, global markets were extremely worried about the state of China’s economy. Stocks were adversely affected on several days by a series of disappointing economic reports. This was one of the major factors which had dragged down the broader indexes throughout last year and into this year until a rebound in oil prices boosted markets. However, a spate of positive economic data indicates that a semblance of stability has returned to China’s economy. Additionally, global leaders have recently stated that fears over China’s economy have eased. The country still offers some good choices for discerning investors and it makes sense to add them to your portfolio at this time. Financial Leaders Express Relief Speaking at the IMF-World Bank Spring Meetings held in Washington, the world’s financial leaders expressed their relief over China’s economic situation. The general consensus was that though some concerns continue to linger, the Chinese government’s recent actions have reduced fears over the state of the economy. IMF’s managing director Christine Lagarde said the degree of anxiety regarding the world’s second largest economy has declined. Meanwhile, U.S. Treasury Secretary Jacob Lew said new policies outlined by China’s National People’s Congress in March have attempted to address fundamental problems including the overriding issue of excess capacity. Series of Encouraging Economic Reports Of all the encouraging economic data released last week, GDP numbers were possibly the most crucial. First quarter GDP increased by 6.7%, indicating that the economy has managed to tide over the crisis it was facing in the recent past. Stimulus measures implemented by the government have ensured that growth has remained within the target range of 6.5% to 7%. Other economic indicators also show that the economy has reached a certain level of stability. Industrial production increased by 6.8% in March, higher than the average of 5.4% recorded in January and February. Retail sales exceeded most expectations to increase by 10.5%. Growth in fixed asset investment also exceeded expectations, coming in at 10.7%. Credit growth touched its highest level in 20 months. Our Choices A series of encouraging economic reports point to a recovery in the Chinese economy. The world’s financial leaders have also stated that steps taken by the country’s government have managed to stabilize the economy. This means that it is still possible to pick good China stocks with strong fundamentals. However, it may be difficult to pick winning stocks. This is where our VGM score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM score. We have narrowed down our search to the following stocks based on a good Zacks Rank and VGM score. Sinopec Shanghai Petrochemical Co. Ltd. SHI or Sinopec is China's largest petrochemical company. Sinopec has a Zacks Rank #1 (Strong Buy) and a VGM Score of A. The forward price-to-earnings (P/E) ratio for the current financial year (F1) is 9.93, lower than the industry average of 15.57. Its earnings estimate for the current year has improved by 9.7% over the last 30 days. Daqo New Energy Corp. DQ is engaged in the manufacture and sale of polysilicon and wafers to photovoltaic product manufacturers. Daqo New Energy has a Zacks Rank #1 and a VGM Score of A. The company has expected earnings growth of 63% for the current year. It has a P/E (F1) of 6.49, which is lower than the industry average of 18.04. Its earnings estimate for the current year has improved by more than 100% over the last 30 days. JinkoSolar Holding Co., Ltd. JKS is a manufacturer of photovoltaic products which are sold in China and across the world. JinkoSolar has a Zacks Rank #1 and a VGM Score of A. It has a P/E (F1) of 4.35, which is lower than the industry average of 11.99. Its earnings estimate for the current year has improved by 11.7 % over the last 30 days. China Eastern Airlines Corp. Ltd. CEA is an airline company based in Shanghai. China Eastern Airlines has a Zacks Rank #1 and a VGM Score of B. The company has expected earnings growth of more than 100% for the current year. It has a P/E (F1) of 5.12, lower than the industry average of 10.14. Its earnings estimate for the current year has improved by 5.4% over the last 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CHINA EASTN-ADR (CEA): Free Stock Analysis Report SHANGHAI PETROC (SHI): Free Stock Analysis Report DAQO NEW ENERGY (DQ): Free Stock Analysis Report JINKOSOLAR HLDG (JKS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research