Chinese ADRs are trading mixed today after the lunch with NASDAQ listed names shining more. Baidu.com, China's premium search engine company, is up $7.15 or 2.15% at $339.55, extending gains from last week following better-then-expected earnings. As the following table testifies, large cap NYSE listed Chinese ADRs are pulling down the China ADR Index (CAI). The index lost 24.4% year-to-date (YTD) with notable difference between NASDAQ and NYSE listed ADRs. While the market cap weighted overall index lost almost 15% YTD, NASDAQ listed Chinese ADR Index or CQI holds up much better by shedding -15.4% YTD. This performance is not much different then major U.S. indices themselves.

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?

Stock markets in the U.S. continued to slug: inflation concerns and high oil kept pressure on equity markets. Tuesday's economic data illustrated how the steep run-up in energy costs this year is affecting businesses. The Labor Department data showed that producer price index jumped 1.4 percent in May, the largest increase since last November. The DJIA shed 108.78 points. The S&P 500 index, a measure of the broader market, fell 9.21 points to 1,350.93, while the Nasdaq composite index fell 17.05, or 0.69 percent, to 2,457.73.

U.S. listed Chinese stocks came back strongly by the end of the day, NYSE names in particular. China Mobile (CHL), China's largest mobile operator came back especially strong by gaining $2.67 or 3.75 percent on Friday to finish at $77.39. Some of the institutional investors made use of the opportunity to pick up good quality stocks.

A near 20 percent correction in four weeks has wiped $700 billion off the Shanghai Stock Exchange, making global investors nervous about a possible China meltdown. Considering the 132% run of the Shanghai Composite in 2006 and a subsequent 125 percent run in 2007 before the current pullback, a bubble theory has ample room to develop. The question is this. Is there a bubble and if so how to hedge against that?

I have a feeling that way too many investors don't understand how much Wall Street influences China ADR prices. Many say "I don't understand what U.S. subprime problem's got to do with China Mobile" They are right in their own turf but as the following two charts demonstrate, Wall Street has a tremendous impact on Hong Kong trading. On the contrary, Hong Kong trading has a negligible impact on the Street. And as you may know, China ADRs trading on U.S. exchanges follow Hong Kong prices. So you really should look into what moves Hong Kong.

China stocks post biggest weekly loss in a decade: China's main stock index closed Friday with a weekly loss of 8 percent, its biggest weekly drop since May 1997. Chinese ADR portfolio was just as bad with no clear indication where the bottom is. Look up from the table below how your Chinese stocks did.

I have been following Chinese ADRs (U.S. listed Chinese companies) for a long time to realize a change in the dynamics of new IPOs. Investors have to be very selective when it comes to Chines IPOs, especially that high quality Chinese companies seems to choose Hong Kong and Shanghai lately.

China computer game developers have been working for foreign game developers to make a living for a long time. However, several years of hard working and accumulated know-how eventually brought about a significant change. Numerous domestic developers have started to spring out based on self-innovation. In-house, self-developed games already account for 64.8% market share of the Chinese online game industry.

The last trading day of September was a happy one. Our favorite proxy for the overall China ADR* universe, the iShares FTSE/Xinhua China 25 Index (FXI), closed at $180.00 marking an exact 20% run over the month. What makes this rally even more remarkable is the strong underlying volume. We know that Hong Kong is the home market for the most prominent FXI components. So we found comfort in the news that Hong Kong blue chips rose 0.3 percent amid unprecedented volume on Friday, September 28th, closing out the quarter with their best gain since the end of 1999. The Hang Seng Index gained 13.6 percent for the month and 24.7 percent for the three months ended in September.

Chinese companies have gone a long way. Table of top ten companies by market capitalization has a surprise: five of them are from China! Exxon Mobile is followed by PetroChina... Impact of Chinese companies on the Hong Kong and Shanghai Stock Exchanges.

Mr. Yuzhu Shi's Giant is coming to the NYSE. Short update on Mr. Shi's previous business developments, successes and failures.

What did I predict? If U.S. falls Chinese small caps will tumble. Here it is. Next week Monday and Tuesday will be even worse. Recovery on Wed-Friday. Watch!

What a day we had on Thursday! Who would have thought things will look brilliant on Friday? Well, I did. Here is why: despite all major U.S. indices crumbling before the close, it became clear that it is due to extensive profit taking. What's wrong with that?

I expect China ADRs to beat expectations and cheer investors all over the board. Stocks that I expect to fly today are: YZC, PTR, CEO, BIDU, SNP, LFC, CHL, CHA, CHU plus quality NASDAQ listed Chinese stocks.

Strong Wall Street momentum is likely to carry over to Asia tonight. If the Hang Seng hits another peak tomorrow, China ADRs will be on FIRE on Tuesday!

Hope you had steel nerves in August. Referring back to the main article in our previous Newsletter, “Strong stomach needed”, we could not have timed that article better. August turned out to be a heck of a month. U.S. subprime problems put pressure on equity markets globally, sinking our favorite proxy for U.S. listed Chinese stocks, the FXI, 15 percent by Aug 16th. Then the FED’s decision to lower inter-bank lending rates by a half point sent our benchmark up 20 percent by Aug 27th, just to see those gains evaporate the next day. Still, investor optimism fuelled the index to a 7.43 percent gain for the month, attributed to further rate-cut hopes and news that the U.S. governments would help tackle the subprime mortgage problem.

Liquidity, or the ability to buy and sell large blocks without effecting the share price, is perhaps the most important factor for institutional investors in choosing where to execute their trades. Looking at the Chinese stock universe from an American investor’s point of view, there are three markets that investors would consider: the NYSE, the NASDAQ and the Hong Kong Stock Exchange. Investing in Shanghai and Shenzen is still limited for foreigners and is further complicated by corporate accounting differences and information asymmetry.

Chinavestor “Stock of the month” ends up 5.2% in 2005 and is up 55.6% since inception, despite the fact that China’s booming economy failed to translate into stock-market gains. Defying rises in oil prices and interest rates, Asia stocks rose as domestic economies picked up and foreign funds sought cheap valuations. But the country level performances were far from uniform with indices in the greater China region at the bottom of the list.

On a quiet Wednesday, August 31st, China Telecom (CHA) Corp. Ltd., China’s last major NYSE listed player reported earnings. The market hardly noticed as investors worried about high oil prices and news of a hefty share sale by PetroChina (PTR). For us, however, this quiet day was much more. We can now kick back and get a sense of what is going on in China, in micro level. Because we all know that economic growth doesn’t necessarily translate into steady stock-market gains, and the Chinese market faces numerous challenges, ranging from company scandals and limited corporate disclosure to efforts by the government to sell its large stake in Chinese companies without hurting the share prices.

On a quiet Thursday, July 21st, China scrapped the Yuan's decade-old peg to the U.S. dollar and shifted to an undisclosed basket of currencies to manage the currency. As part of the move, the central bank revalued the Yuan to 8.11 to the dollar, effectively a 2.1% in crease in the Yuan's value.

Mixed Chinese IPOs on the Hong Kong Stock Exchange set tone for new offerings. Let’s wrap up June IPOs by using headlines of major publications. 6/30: COSCO holdings makes weak debut on Hong Kong Market

Most Chinese companies, that are listed in the U.S. stock markets as American Depositary Receipts (ADR), reported 2004 fourth quarter and yearly results so far. To be actual, out of those thirty ADR that are listed either on the NYSE or NASDAQ at present, twenty three reported earnings with mixed results.