Shares of chinese companies listed on the U.S. exchanges opened up mixed. China Mobile (CHL), the world's largest mobile phone company by subscriber number came back strong in Hong Kong, signalling a good start for the day in New York. The positive outlook of the industry leader had a positive effect on smaller players such as China Ntecom (CN) and China unicom (CHU). All three Chinese telecom companies are between 2.38% and 1.55%.

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.

Stocks in Asia and Europe rose at the end of the month as fears of a deep U.S. recession receded. Despite favorable global economic climate change, Chinese stocks haven’t regained their shine yet. As the chart on the page testifies Chinese domestic shares in Shanghai are off 35% year-to-date (YTD) a far cry for U.S. China stock investors whose benchmark, the China ADR Index is down by 16.7% YTD.

The ADS ratio of the Company has been changed from one ADS representing 50 H Shares to one ADS representing 10 H Shares. This ratio change was taken effect on 27 June 2008 (Eastern Standard Time). No additional H Shares will be issued by reason of this ratio change.

The Company’s proposed profit distribution plan for the year 2007 was approved with a distribution of a cash dividend of RMB0.170 per share (including tax) to all of the Shareholders, totalling RMB836,100,000 (including tax) for the year 2007. To authorize the Board to issue additional H shares of the Company, during the relevant period, in an amount not exceeding 20% of the total issued H shares of the Company as at the date of this resolution and to make appropriate amendments to the Articles of Association accordingly, if necessary. 12. To authorize the Board to repurchase the H shares of the Company, during the relevant period, in an amount not exceeding 10% of the total issued H shares of the Company as at the date of this resolution and to make appropriate amendments to the Articles of Association accordingly, if necessary.

There is not much to be happy for as far as Chinese stock trading goes today. Most of Chinese ADRs are giving up gains of previous days, such as Baidu.com after yesterday's $25 rally. As the following summary table shows, the China ADR index (CAI), a broad measure of the performance of Chinese ADRs, lost 23.48 points today and is down 25.8% year-to-date (YTD).

In this volatile environment looking for momentum stocks is important. here is a list of stocks that portray such momentum measured by their 10- and 30-day moving averages or DMAs. the following five stock have their 10-DMA surpass of their 30-DMA. On the flip side all their current price is BELOW 10-DMA, a sign that their current rally may have some to a temporary halt. Still, I think this table is good to look at and check on the stocks that might be of your interest.

As the following table tracking top movers from the China ADR universe, Yanzhou Coal (YZC) - China's third largest and only U.S. listed coal miner - is taking the top spot. The stock is trading $2.30 higher vs. yesterday's close. Is it a technical rebound? Absolutely! How do we know? Check this out: Yanzhou Coal (YZC) : Is it oversold? - a post on this very same blog dated June 20, Friday. Here is the quote: "Going back ot Yanzhou Coal: a temporary freeze on coal prices means previous earnings calculations are off the window. So it's time to readjust YZC to new regulations.

A temporary freeze on coal prices means previous earnings calculations are off the window. So it's time to readjust YZC to new regulations. Going back to the original question, if YZC is oversold - the answer is YES! With that in mind a technical correction could swing back YZC $5-$6 next trading day. However given current negative market sentiment, a sentiment that is most likely to spill over to Asia on Monday, investors may have to wait until Tuesday to short all YZC holdings.

We just argued yesterday that unless you acted on time, you missed out the opportunity. Shares of Chinese oil refining related companies have started to rise last week before the news of gasoline and diesel price increase broke out yesterday. As the following Google finance screenshot testifies, shares of Asia's largest refiner by capacity, Sinopec (SNP), rose 18.05% followed by the polyethylene and propylene producer Sinopec Shanghai Petrochemical (SHI). Petrochina, China's largest oil company with significant refining capacity rose 7.67% during the last five days.

Shares of Chinese oil companies are leading Chinese ADRs today on news that Beijing will increase price of refined oil and electricity. Shares of China's largest oil company by market value, Petrochina (PTR), jumped $9.78 or 7.27 percent by 11:00 followed closely by Sinopec (SNP) and China's largest independent electricity provider, Huaneng Power (HNP).

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?

China's largest coal miner by output reported a 13.3% increase in commercial coal production in May 2008 from a year ago. Export of Chinese coal came to a standstill in 2007 as China is struggling to feed its growing electricity demand. Nearly two-thirds of Chinese electricity is generated by unsing coal fired power plans. The winter storm related coal supply shortages just highlightened the problems facing both the cola nad the power generating industry.

Last week we published a study that looked at 10- and 30-day moving averages and their crossing patterns to find momentum stocks. We continue with some technical analysis today by introducing the Overbought/Oversold techincal indicator. The one we use gives investors a gauge of the market in a snapshot by laying down all Chinese ADRs on a single paper. This method makes it very easy to find stocks that are out of their normal trading characteristics; thus offering trading opportunities.

The underlying reason for the drop is very simple. The company announced in a statement that the provincial government of Shandong, where Yanzhou Coal is headquartered, had introduced a temporary price cut for thermal coal in the next three months. The argument goes that the provincial government wants to secure electricity production for the upcoming summer months when demand peaks. We saw Huaneng Power (NYSE:HNP), China's largest independent power generator, to report an 80% drop in first quarter profits due to high coal prices. The problem is that state-set power prices have not been increased since June 2006. Some fear that high coal prices prevent local power generators to stock up coal before the peak summer season, endangering smooth power supply.

We have noted the recent decrease in the price of the H shares of the Company today and wish to state that we are not aware of any reasons for such decrease. We also confirm that there are no other negotiations or agreements relating to intended acquisitions or realizations which are discloseable under Rule 13.23 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), neither is the board of

The Company estimates that the 2008 Coal Export Contract will result in an increase in the Company’s revenue by RMB224.93 million for the year ending 31 December 2008, representing 1.4% of the revenue of the Company for the year ended 31 December 2007. This announcement is made pursuant to Rule 13.09(1) and 13.09(2) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

On 26 May 2008, pursuant to the mediation arrangement of the Supreme Court of the People’s Republic of China as implemented by the Higher People’s Court of Shandong Province, Yanzhou Coal has released the 200 million shares in Huaxia Bank Company Limited that were transferred to Run Hua Group Limited (“Run Hua Group”) to enable Run Hua Group to finance the settlement of the principal and interest of the entrusted loan owed by Lianda Group Limited to Yanzhou Coal. Yanzhou Coal announces that it recovered the principal and interest of the entrusted loan in the amount of RMB780 million on 30 May 2008.

Yanzhou Coal, China's third largest coal miner, is the best performing Chinese stock today. The stock is up excatly 15.0% year-to-date or even better, up 75% since March 26, 2008 as the following screenshot from Google finance testifies. You may say: "Wish I had known this stock just two months ago."

Yanzhou Coal Mining Company Limited (hereafter the “Company”) has entered into a sale and purchase agreement of coal with Huadian Power International Corporation Limited (hereafter “Huadian International”) for year 2008 (hereafter the “Agreement”). Pursuant to the Agreement, the quantity of coal sales by the Company to Huadian International for year 2008 amounts to a total of 7.3 million tonnes, representing an increase of 2.5 million tonnes or 52.1% as compared with the amount sold in year 2007. Such increase in the quantity of coal sales to Huadian International is mainly due to the increased coal consumption by Huadian International resulted from its increase in the number of power generators. The net price of coal under the Agreement is RMB470.15 per tonne, representing an increase of RMB129.12 per tonne or 37.9% as compared with the price per tonne supplied in 2007, given such change in quantity of coal sales under the Agreement.

The details set out as resolution numbered 11 in the notice convening the AGM (the “AGM Notice”) will be proposed at the AGM for the granting of a general mandate to the Directors to allot, issue and deal with new H Shares of up to a maximum of 20% of the H Shares of the Company in issue at the date of passing the resolution.

During the reporting period, the operating income of the Group was RMB5,552.258 million, representing an increase of RMB1,774.371 million, or 47.0%, as compared with the corresponding period last year. Net profit attributable to the Shareholders was RMB1,490.528 million, representing an increase of RMB789.861 million, or 112.7%, as compared with the corresponding period last year.

The Group’s net sales for the year ended 31st December, 2007 was RMB14,560.6 million (approximately US$2,080.6 million, or HK$16,234.4 million), representing an increase of RMB2,553.3 million (approximately US$364.9 million, or HK$2,846.8 million), or 21.3% as compared with the 2006 net sales of RMB12,007.3 million (approximately US$1,537.7 million, or HK$11,951.1 million).

There is not much direction to find in market sentiment lately. While February turned to be a comeback for Chinese shares listed in the Hong Kong Stock Exchange, the same stocks nosedived in the U.S. the last trading day of the month tracking major U.S. indices lower. As the chart on the page demonstrates, February was somewhat an improvement over January for stocks in Hong Kong measured by the blue chip Hang Seng Index. Stocks posted their best monthly gain since October in Hong Kong. At the same time, the selloff on February 29 in the U.S., a day the DJIA fell 315.79 points, left the stock market stuck in a rut with no clear indication to get any better. As the saying goes, it will get worse before it gets better… The U.S. listed stock universe, measured by the China ADR Index (CAI) has not been able to recover January losses and fell heavily on Friday along overall market sentiment.

Shares of Chinese equities listed on U.S. exchanges, referred to as ADRs, are trading sideways after the open. Large cap stocks seem to be consolidating after yesterday's huge rally with Baidu.com as exception. China's search engine giant, Baidu, is up another $5.27 at $265.66 passing the $260 resistance level easily. Baidu reported strong 2007 Q4 and full year earnings yet was on the low side, following weak market sentiment. But this time when sentiment is undecided, fundamentals came back on play, propelling Baidu back to the $260+ range.

Major U.S. indices welcomed the news seding the DJIA up 272 points to12,012. Chinese ADRs followed suit with top ten movers on the table below. Momentum kept rolling and Chinese ADRs had the best day in modern history: all major Chinese ADR indices rallied over 6 percent. The China ADR Index (CAI) rose 7.79% or 77.88 points today to close at 860.68. Index heavy-weights pulled the index with energy companies leading. All of China's oil triumvirate advanced, PetroChina (PTR), CNOOC (CEO) and Sinopec (SNP). China's third largest cola miner Yanzhou Coal (YZC) was on fire just as China's leading search engine giant, Baidu.com (BIDU).

A near 20 percent correction in the Chinese stock universe in January marked the worst month for Hong Kong equities since Oct. 1997 as rising risks of a U.S. recession prompted a global equities sell-off. As the following chart suggests, the Hang Seng Index of Hong Kong lost 15 percent in January alone. U.S. listed Chinese stocks did not make it any better as the broad China ADR Index or CAI lost 14.7 percent, too. U.S. stocks held up better, sending the DJIA down 4.9 percent for the month to 12,650. To make matters worse, ratings agency Standard & Poor's said it cut or may cut its rating on up to $534 billion of subprime bonds. Where is the bottom? Where do Chinese ADRs go from here?

National Development and Reform Commission Claimed Further Price Increases for Part of Production Materials Possible Intervention in Coal Price NDRC claimed yesterday (28th Jan) that in 2008, the prices of some production materials would keep increasing, which would further push up prices of related downstream product prices.

Despite sluggish domestic stock performance in 2007 China stock investors have a good reason to cheer. The Shanghai Composite Index climbed 96.7 percent on the year, making it the world’s best performing major bourse in 2007. Chinese companies listed in Hong Kong were just as strong, shooting up 59 percent followed closely by the broader Hang Seng Index. Hong Kong blue chips rose 39 percent in 2007, representing its best annual rise since 1999. All major Chinese indices ended 2007 on a high note, prompting questions how long the China bull will run.

Chinese stocks pulled back on jittery U.S. market sentiment after a Federal Reserve official suggested rising inflation could prevent the central bank from making further interest rate cuts. The measure for the performance of Chinese stocks on U.S. exchanges, the China ADR Index (CAI), lost -29.34 points today to close at 838.4.

National Development and Reform Commission (NDRC) admitted yesterday (on the 28th) in the “Year 2007 economic news conference” that in 2008, prices will continue to rise. This will have effect on the consumer market prices as they will continue to increase.

This article is just too funny. I just turned bearish on Yanzhou Coal for the short-term, telling investors in my Newsletter that power outages in China is partially blamed on coal mines and Beijing is considering to interviene in coal prices to keep supply abundant for power generators.

Chinese stocks listed on American exchanges are down for the year 2008, tracking Wall Street sentiment relatively closely. CAI, CYI and CQI are market cap weighted indices and as such are tracking large cap companies very closely. China telecom sector got caught on fire in the afternoon on news of a possible industry revamp and its implications. CHU, China's smaller mobile carrier is expected to benefir from the industry reshuffle. China Unicom rose 2.2% to $22.78.

The China ADR Index (CAI) lost -9.57 points to read 863.61 by noon on Monday. NYSE listed Chinese equities held up better, the China NYSE Index (CYI) lost only -9.38 points while the China NASDAQ Index (CQI) is down by -14.21 points. Oil stocks are weighting on the index heavily. Index heavyweight PetroChina (PTR) lost $2.63 or -1.78% to $145.20 dragging down the index. Asia's largest refiner SNP lost $2.48 or -2.12% while offshore specialist CEO lost $2.48 or -1.70% to trade at $143.02.

Chinese stocks made a modest comeback by noon on Friday. The China ADR index, measuring cap weighted performance of 67 Chinese stocks, is up 0.35 percent. NASDAQ names are up almost one percent. NYSE names are laggards.

Current market conditions give us a great deal of concern, especially for shorter term investors. We don’t know all the answers but will reflect on current situation and formulate a defensive strategy. All three major U.S. stock indexes plunged more than 2 percent on Tuesday after a record loss at Citigroup and the worst showing for retailers in five years fuelled fears that the economy was heading into recession. JP Morgan missed earnings estimates, just as Intel did. No wonder, Chinese ADR tanked alongside. One may ask: where is the bottom? Honestly, we don’t know. But this is what we know:

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 want to share with you a screenshot from Chinavestor's Pre-Market report. It shows a very significant accumulation of Yanzhou Coal by institutional investors. Look for the third section called "Significant Corporate Actions". It shows institutional investor's action in Hong Kong - the home market for most NYSE listed Chinese ADRs. I don't remember seeing such a strong momentum build up for any stock lately. With that said, ifthe big bulls are there, I think we should folow. YZC is at $79.31 today. I say STONG BUY.

Stocks that are oversold big time and thus are ready for comeack today are ACH, HNP, CEA and YZC. Plus shares of Chinese fixed-line operators China Telecom Corp. and China Netcom Group Corp. gained for a second session in Hong Kong Tuesday on expectations they could soon receive third-generation cellular licenses. So that rally is not technical but fundamental in nature so don't try to find it on this screen. Still, CHA and CN are about to cheer investors to day, too.