China Life Insurance Co. (NYSE:LFC) reported total accumulated unaudited premium income to reach Yuan 264.8 million for the first ten months of 2008. China Life is battered by the weak performance of the Shanghai Composite since a quarter of her income is derived from the performance of index heavy companies such as ICBC or Petrochina. But the appetite for insurance policies still high, China Life is well positioned to keep her dominant place within the Chinese life insurance market. And while Ping An Insurance, the archrival, lost $2.2 billion in a Fortis related failed investment scheme China Life's book a unshattered.

For details about the premium income, please click on the link from the HKEx here.

China shocked the world on Monday by announcing a staggering Yuan 4 billion ($586 billion) financial packaged aimed at bolstering domestic demand, a sort of "New Deal" in a Chinese edition. Much of the money is intended to develop infrastructure, agriculture, low cost housing and health care. The number is not only the second largest after our much debated $700 billion but represents 16% of China's total economic output in 2007. Now the question is this: what stocks will benefit?

The best answer comes from the market itself. We checked out the first week performance of all 42 Hang Seng components following Monday's announcement and found that Aluminum Corp. of China (CHALCO) is the best U.S. cross listed Chinese company to benefit from the stimulus. All U.S. listed Chinese companies are highlighted by a grey area.

Remember, Hong Kong is the primary market for mature Chinese companies that list in the U.S. Performance of American listings of those companies are tied to their performance in Hong Kong, so our choosing of the Hang Seng for such purpose makes perfect sense.

Hang Seng Components since $586 billion package
Name	Ticker	11/14/2008	11/10/2008	Change %
YUE YUEN IND	0551.HK	15.2	14.54	4.5%
CITIC PACIFIC	0267.HK	6.15	6.06	1.5%
CHALCO	2600.HK	3.47	3.45	0.6%
CATHAY PAC AIR	0293.HK	8.01	8.1	-1.1%
NEW WORLD DEV	0017.HK	6.85	6.96	-1.6%
LI & FUNG	0494.HK	14.24	14.6	-2.5%
CLP HOLDINGS	0002.HK	52.85	54.3	-2.7%
ESPRIT HOLDINGS	0330.HK	40	41.18	-2.9%
CHINA LIFE	2628.HK	21.85	22.5	-2.9%
WHARF HOLDINGS	0004.HK	16.62	17.26	-3.7%
HK ELECTRIC	0006.HK	42.8	44.75	-4.4%
CCB	0939.HK	4.14	4.34	-4.6%
HK & CHINA GAS	0003.HK	13.38	14.04	-4.7%
ICBC	1398.HK	3.75	3.94	-4.8%
BANK OF CHINA	3988.HK	2.14	2.25	-4.9%
CHINA MOBILE	0941.HK	68.05	71.8	-5.2%
PETROCHINA	0857.HK	5.83	6.19	-5.8%
SINOPEC CORP	0386.HK	4.58	4.9	-6.5%
MTR CORPORATION	0066.HK	16.66	17.9	-6.9%
CNOOC	0883.HK	6	6.5	-7.7%
BANKCOMM	3328.HK	4.53	4.91	-7.7%
PING AN	2318.HK	33.35	36.15	-7.7%
CHINA OVERSEAS	0688.HK	9.26	10.06	-8.0%
TENCENT	0700.HK	50.15	54.5	-8.0%
CHINA UNICOM	0762.HK	9.6	10.46	-8.2%
SWIRE PACIFIC A	0019.HK	47	51.5	-8.7%
COSCO PACIFIC	1199.HK	5.65	6.2	-8.9%
HENDERSON LAND	0012.HK	26.9	29.77	-9.6%
HSBC HOLDINGS	0005.HK	82.3	92.3	-10.8%
BOC HONG KONG	2388.HK	8.53	9.58	-11.0%
BANK OF E ASIA	0023.HK	14.8	16.68	-11.3%
CHINA MER HOLD	0144.HK	15.3	17.3	-11.6%
HANG LUNG PPT	0101.HK	15.4	17.42	-11.6%
FIH	2038.HK	2.39	2.72	-12.1%
SHK PPT	0016.HK	58.8	66.99	-12.2%
HANG SENG BANK	0011.HK	90.3	103	-12.3%
HKEX	0388.HK	65.5	76	-13.8%
CHINA SHENHUA	1088.HK	13.16	15.4	-14.5%
HUTCHISON	0013.HK	37.45	44	-14.9%
SINO LAND	0083.HK	6.04	7.18	-15.9%
CHINA RESOURCES	0291.HK	13.4	16	-16.3%
CHEUNG KONG	0001.HK	65.45	80	-18.2%

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Extraordinary times. This comes in mind first when I’m looking back to the month of September. Extraordinary volatility, events and an outlook that’s still uncertain. October 2nd. may be a better time to find directions for the market following the vote in the House but for now we have to focus on past events. Looking at the chart tracking major indices in 2008 doesn’t make investors smile. The DJIA lost over 20% by September 29 though it came back 485 points on the 30th—the best day in six years. But make no mistake, the third quarter of this year was one of the worst for China stock investors since 2001.

China's largest life insurer reported 2008 third quarter interim results today.

Australia's swift rate cut saved the day for Asia but Europe still got its woes dragging on markets. So what's the outlook for us today in the U.S.? Looking for clues from index futures isn't much of a help. While the S&P500 futures point to a higher open NASDAQ futures go the other way around. When I look at China ADRs, first thing hits me on my morning screen is this: Chinese companies listed in American exchanges are oversold to a point where they can only come back. Looking at moving averages, there is not a single Chinese stock that is above 20 day moving averages (DMA) not to mention above 50 DMA or 200 DMA.

Steep losses right at the open. The DJIA is down 242 points in the first 15 minutes of trading. Europe and Asia was not any better either. Hong Kong's Hang Seng closed below the 17,000 level not seen since 2006. These losses are attributed to the plunge in the Dow on Friday. So it looks as if the downward spiral has started.

Given the tremendous impact of the “bail out” plan on American stock markets, this Newsletter is non-traditional in a sense that it will give investors guidance for the upcoming days versus a month. To put latest developments into perspective ...

Good morning. Chinese companies that dropped the most came back strong this morning. This comes as a no surprise after Hong Kong edged higher and index futures pointed to a higher open. Altogether I think we will see insignificant volume until Thursday when the House votes again on a revised bill. If that passes, we're up to a sizeable rally. If fails, I don't know. It better passes the second time.

It's 11:00 A.M. on Monday and is a good time to take a deep breath and see what lays ahead today's trading for Chinese ADRs. For starters, energy pulled the broad Hang Seng Index up 1.6% after Friday's record 9.2% rally. Petrochina (PTR) had a strong showing closing 5.1% higher on the back of strong oil. So today's gain of $2.44 on the NYSE comes as no surprise. Aluminum Corp. of China (ACH) is strong today on news that the company is not considering cutting additional production despite low aluminum prices.

Chinese companies listed in American exchanges plunged on Wednesday tracking the DJIA down. As the following chart reveals, the wide China ADR Index (CAI) lost 44.3% year-to-date (YTD) thanks to the free fall of large cap Chinese companies.

Big market days are good for the use of technical indicators. This is when technical indicators come into play by visually representing where a stock is trading relative to her peers. So from this respect yesterday was a good day - lot of action on the NYSE and NASDAQ. Chinese ADRs got caught in the wind and traded actively. But just to see where they are relative to their trading characteristics, the following picture is worth a thousand words. They are all beaten and oversold. Take a look at China Eastern Airlines (CEA). The stock has come down a long way with no clear indication where the bottom is.

Oil is ruling the price of shares of Chinese companies listed in the U.S. today. Asia's largest refiner, China Petroleum and Chemical Corp. or Sinopec (SNP), is top gainer among Chinese ADRs while another oil industry giant, offshore specialist China National Offshore Oil Co. or CNOOC Ltd. (CEO) is top loser. What's the reason for such a different reaction to softening oil prices?

Chinavestor.com, an independent stock research firm specializing on Chinese ADRs or China companies listed on U.S. stock exchanges, is proud to serve the wider investment community by making previous Newsletters public. Current topic of August 2008 Newsletter is: "Earnings season is on. Let's go stock specific." It is available for subscribers only and will be made public in September. July 2008 Newsletter is about explaining why U.S. equity markets have such a profound impact on the performance of Chinese stocks listed in Hong Kong (H-shares) and in New York (ADRs). We believe it still carries a lot of useful and relevant information applicable to today's market environment.

Chinese ADRs are trading mixed today with Baidu.com (BIDU) taking the lead and Sohu.com (SOHU) taking a beating. Easing oil prices helped spur the DJIA to 11,315.00 points by 1:00 P.M. Lowering demand for the black gold became obvious today when statistics showed that U.S. drivers drove 3.5% less miles than last year, the biggest ever drop for the measure during the busy summer holiday season. Customs data showed that demand for oil dropped by 891,000 barrels in June vs. May, a sign that high price of oil is unsustainable. Many expect crude to come back to the $100 level within reasonable time. The greenback strengthened against both the Euro and the yen, adding fuel for the slide in the oil price. Looking at the U.S. listed Chinese stock universe, Baidu.com is shining the brightest today so far. China's premium search engine company is up $4.06 or 1.21% by 1:00 P.M., continuing a rally that seems to have no end. The price of the stock is up 17.8% since June 23 (chart here) when the company announced better then expected second quarter results plus a positive guidance for the upcoming quarter.

Fourth week of July was the week we've been long waiting for. Price of oil tumbled while Wall Street ended the week on a high note. Chinese companies listed on American exchanges performed well, too. As the following summary table of the Chinese ADRs listed on the NYSE and NASDAQ suggests, double digit gains were quite common - see column 5 market "change". In fact China's premium search engine company, Baidu.com (BIDU), rallied $40.86 since last Friday in just five trading days. The company announced 2008 Q2 earnings on July 23 after the close sending its shares remarkably higher the next day and breaking through the $300 resistance level.

Lowering oil prices will help Chinese refiners to trim losses - so it should give a sizeable boost to Asia's largest refiner Sinopec (SNP) and also to Petrochina (PTR), China's largest integrated oil company. CNOOC Ltd. (CEO), China's offshore specialist with no refining capacity will feel a pinch - a 2%-5% drop in a few days is likely.

Chinese stocks had a volatile week: UTS Starcom recorded an impressive 21.1% gain just this week followed by Guangshen Rail (GSH) with a 11.6% jump, China Life Insurance with 9.1% gain and Yanzhou Coal (YZC)'s 9.0% rally. On the negative side Comtech Group (COGO) crashed losing 45.5%. What next week is going to bring us? The following table comes handy while looking for momentum stock. One common measure is looking at daily moving averages or DMAs. Important is the direction of the DMA, it's value relative to the last closing price and finessed investors look for difference between 10-, 30-, 50-, and 200 DMAs. Our method is this: we like stocks that fulfill the following conditions:

High oil sent Wall Street lower today, the DJIA sinking 166.75 points to a two year low of 11,215.51 points. Shares of Chinese companies followed suit, the China ADR Index (CAI) losing 38.28 points to close at 701.88. The index is down 29.81% year-to-date (YTD), following negative Wall Street sentiment.

We took the risk to say a month ago that “we think Chinese equities are nearing the bottom. Looking at Asia and China in particular, we find both macro and micro economic data to fuel our optimism. “ Since then the China ADR Index (CAI) rallied 7.5% in line with the Hang Seng’s 7.0% comeback, outshining the Shanghai Composite’s modest 3.7% rally. Have Chinese equities bottomed out?