Yesterday, I wrote about Actions Semiconductor (NASDAQ: ACTS), Vimicro International Corporation (NASDAQ: VIMC) and SGOCO Group (NASDAQ: SGOC) three Chinese semiconductor stocks that listed on US exchanges via the more stringent IPO process rather than through a reverse merger; while today, I wanted to mention three Chinese basic materials stocks Ossen Innovation (NASDAQ: OSN), China Shengda Packaging Group (NASDAQ: CPGI) and Fuwei Films (NASDAQ: FFHL) that also IPO’d. Given how many allegations of financial fraud that Chinese reverse merger stocks are facing, buying a Chinese stock that IPO’d (in theory…) should be less risky. Of course, this is not always the case as ZST Digital Networks (NASDAQ: ZSTN), which I wrote about on Wednesday, is a Chinese stock that IPO’d and is also facing some allegations of financial fraud. Nevertheless, here is a closer look at OSN, CPGI and FFHL to help you decide whether any of them is worth further due diligence:

Ossen Innovation (NASDAQ: OSN) is Also a Chinese Rare Earth Stock Play

Ossen Innovation, formerly known as Ultra Glory International Ltd., is a Chinese holding company that manufactures and sells plain surface prestressed steel materials as well as rare earth coated and zinc coated prestressed steel materials. Hence, OSN is both a steel and a rare earth stock play. In late June, Ossen Innovation reported full year 2010 results and it should be noted that revenue increased 16% to $117.5 million while net income increased 83% to $14.6 million. On Thursday, Ossen Innovation rose 7.82% to $3.17 and the stock as a 52 week trading range of $2.12 to $6.11 a share. Moreover, I should note that when I last wrote about Ossen Innovation (along with two other China steel stocks) back on June 16, it had just closed at $2.57 a share.

China Shengda Packaging Group (NASDAQ: CPGI) is Still One of the Worst Performing IPOs Over the Past Year

China Shengda Packaging Group, formerly known as Healthplace Corporation, is a Chinese paper packaging company that designs, manufactures and sell corrugated paperboards and flexo-printed and color-printed paper cartons for a variety of industries. In the middle of June, it was announced that the Chairman of China Shengda Packaging Group had purchased 500,000 shares of the company’s stock. However and back in May, China Shengda Packaging Group was ranked #1 in a list of the worst performing IPOs of the past year after having dropping 70.5% since its IPO. On Thursday, China Shengda Packaging Group rose 1.40% to $1.45 – still well below its IPO share price of $4 (CPGI has a 52 week trading range of $0.93 to $7.40 a share).

Fuwei Films (NASDAQ: FFHL) Recently Soared After Announcing a New Agreement with a Coca-Cola Bottler

Fuwei Films is a Chinese developer, manufacturer and distributer of plastic film that uses the biaxially oriented stretch technique, otherwise known as BOPET film (Biaxially oriented polyethylene terephthalate). Earlier this week, Fuwei Films announced that a subsidiary has signed a letter of intent with China Bottlers Procurement Consortium to supply it with PETG heat shrinkable label film for the second half of this year. Moreover, the Coca-Cola deal may account for 8% to 10% of FFHL’s total sales for the second half of 2011. Hence and on Wednesday, Fuwei Films soared approximately 29% but on Thursday, FFHL fell 5.23% to $3.99 and the stock has a 52 week trading range of $0.80 to $6.55 a share. It should also be noted that Fuwei Films posted 1Q2011 revenue of RMB174.2 million (US$26.5 million) verses RMB88.5 million for 1Q2010 while net income was RMB23.6 million (US$3.6 million) verses RMB0.3 million. In addition, FFHL reported cash and cash equivalents of RMB181.9 million (US$27.7 million) verses RMB 171.2 million at the end of 4Q2010.

The bottom line. Both OSN and FFHL seem to have positive tailwinds while CPGI, although also on an uptrend, is still one of the worst performing IPOs over the past year.