Two Asian newspapers revealed that China’s fight against inflation could pay off in the immediate future. If so, the SSE Composite Index (Shanghai: 000001.SS) Shanghai is the place for you to be.

Both The Shanghai Daily and The Standard reported that as early as this week the Chinese government could issue new numbers to show it has finally reined in inflation. The news could send the Shanghai Composite Index back up. In fact, in our June 11 issue, we thought it was a good idea to double down on the index while it was still in a trough.

The Asian newspapers quoted the Industrial and Commercial Bank of China as saying that the country’s inflation could peak in 2009 and then decline.

While the bank also predicted that stock markets could continue to suffer through 2011, our guess is that any government reporting good inflation numbers has got to be considered a superstar.

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