What do you think about investing in China?

We might get too concentrated on US and EU companies and underestimate China’s growth, giving some good possibilities for our long-term investment strategy.

Recently I checked China Petroleum & Chemicals Corp. ADR (NYSE:SNP). It sounds interesting, however what concerns me is, that it is traded in its own country lower, than on NYSE. Is it influenced by lower demand in China, compared to demand SNP shares in the US?
After a 52W-low of $78, analysts expect SNP to recover next weeks to $112 or $119.
The negative Cash from Investing Activities and Cash from Financing Activities are giving me some concern.

From:
http://www.bloomberg.com/apps/news?pid=20601080&sid=a.TPeBij1c1U&refer=asia
June 20th 2008

Brief info:

China is expected to raise energy prices and fuel prices, as they are now approximately 30 % under the international import parity prices.
This way China expects to reduce oil consumption and improve energy – if the fuel prices are under control, they will have also less influence on the inflation.
In 2010 each unit of GDP shall use 20% less energy, compared with 2005 levels.

More details:
``The price hike is sooner and bigger than what we had assumed -- a 10 percent hike from Sept. 1,'' Goldman Sachs Group Inc. analysts including Kelvin Koh wrote in a report. ``The fuel price hikes are unlikely to crush demand.''
Refiners will ``get a big boost because they'll be able to raise their prices,'' said Andrew Sullivan, a sales trader at Mainfirst Securities Hong Kong Ltd. ``Analysts will have to go back and rework their models.''
“China should raise fuel prices by 50 percent to boost energy efficiency and cut consumption, China International Capital Corp.”, the nation's largest investment bank, said on June 17.
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Reading about China, I got to the link of Pure Heart China Growth Investment Fund:
http://www.pureheartchina.com/english/investment.asp
Their investment ideology is guided by “intrinsic value” and “margin of safety” and promises an above average return over 30 years period, based on market conditions of growth in China.