"China is spending $200 billion over the next few years to upgrade its rail system; and those new projects will be literally laying on a bed of cement,' says Asia expert Keith Fitz-Gerald.

The editor of The New China Trader adds, "This could lead to enormous growth potential for any cement company that Beijing involves in the process -- such as China Advanced Construction Systems (NASDAQ: CADC)."

"CADC produces and supplies specialized ready mixed concrete for use in all kinds of infrastructure projects including railways, roads, airports, bridges, tunnels, and dams.

"CADC has already benefitted from over 9 new railway contracts from Beijing this year alone, totaling over $19.7 million.

"That may not sound like much, but realize that CADC is a small cap stock ($49.28 million market cap) so $19.7 million of new railway orders represents 39.9% of the company’s total market cap. That means we could see CADC’s earnings explode in 2010.

"In fact, if Beijing continues to pile money into railways, CADC could truly undergo some transformational events that lead to a double or more in 2010 – and more in the next few years.

"Meanwhile, China’s massive $586 stimulus package has rocketed the Chinese economy back on track – and the result can be seen across the board from government sponsored infrastructure projects to consumer spending.

"By the end of 2009, the China is expected to have used 1.54 billion tons of cement on transportation infrastructure and logistics and warehousing projects, according to the country's top economic planning agency.

"In the transportation, logistics, and warehousing sectors alone, China is expected to have increased 2009 cement demand by 27% from the previous year, according to Guo Wenlong, a researcher with the Institute of Integrated Transportation, affiliated with the National Development and Reform Commission.

"China is literally building what amounts to an entire new country’s worth of infrastructure and commercial projects.

"Economists are forecasting that China will use 40% of the entire global supply of cement in 2010. That basically makes China the world’s largest construction site – something I see every time I am there.

"While concrete isn’t sexy or glamorous, the industry’s growth is far from boring. China's concrete market has maintained an average growth rate of 25% over last ten years.

"That adds up to a 931% compounded growth over the last 10 years. Compared to most investments, that sounds pretty glamorous to me.

As for its rail expansion, China plans on laying more track in the next five years than the rest of the world combined. That makes China’s current railway plans the largest railway expansion in the last 100 years.

"The buttresses on which China’s railway projects will be built are forecasted to require as much as 117 million tons of concrete alone – and that doesn’t even begin to account for cement demand tied to China’s other infrastructure projects.

"Basically all of China’s growth, whether it’s railways, roads, bridges, power-plants, dams, or commercial and residential real estate projects sit on a foundation of cement – and that means dynamic small-cap companies like CADC have plenty of room to grow and enormous profit potential moving into 2010 and beyond."