Chinese ADR trading was not much fun this week. While the S&P 500 dropped 3.4% for the week and is down -18.0% year-to-date (YTD), Chinese shares in Hong Kong are worse; The Hang Seng Index lost 3.3% the week but is down -31.7% YTD. No wonder, Chinese shares lifted in American exchanges suffered, too. The problem is not so much with Asia and with China in particular but with global capital flows. Investors are moving into safe havens abandoning positions in foreign markets- crumbling the value of those shares. China is no exception. And just to illustrate how bad things are, WaMu just went under while rumors that Wachovia is next makes my stomach sick.

What a week we had! We woke up on Monday to see Lehman go under along Merrill - though this latter was better off by selling herself to Bank of America. Then we learned that AIG may be next unless it can raise significant amount of capital ASAP. So Monday was a disaster.

The following table sums up weekly performance ranking of U.S.-Listed Chinese Stocks (9/5/2008-9/12/2008). Huaneng Power (HNP), China's largest independent power producer, tops the list by a 9.9 percent showing. 51job Inc. (JOBS) is next, a technical rebounce following a 25% dive after reporting worse than expected 2008 Q2 results on Aug 7. On the bottom of the list we have four small cap NASDAQ listed Chinese ADRs. As fundamentals come back to play in a bear market, low quality earnings and slow growth prospect hurt small cap Chinese ADRs even more.

Chinese ADRS crashed along the DJIA for the week. But there are some notable exceptions like E House (EJ), Comtech (COGO) or The9 Ltd (NCTY). We like Shanda (SNDA), another player from the Chinese online game landscape, and industry leader. Baidu.com (BIDU), China's search engine giant disappointed and solar companies were on a losing streak following strong showing in August. For detailed breakdown of the last week, please find table below.

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.

Based on the success of previous post (China ADR momentum stocks using 10-DMA and 30-DMA) when we highlighted stocks with outstanding momentum, we take a look at the week from a technical point of view. Notable Chinese ADRs are:

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:

Shares of Chinese ADRs followed suit tracking Wall Street lower this week. As the following table sums it all up, Chinese ADRs fell -4.2% this week, on average. Losers outnumbered stocks that closed higher for the week by 35 to 11.

We published a list of chinese stocks last week. The criteria we used was very simple: if 10 DMA was above 30DMA, a stock qualified. The result is not too rosy: stocks on average lost -6.5% between 6/6 - 6/13. Well, it is also noteable that last week was a bloodbath for Chinese stocks not just in the U.S. but worldwide. The Hang Seng Index in hog Kong lost 1,810 points from 24,402.18 points to 22,592.30. This is a 7.4% drop just in one week!

For the week, Chinese stocks sufered heavy losses. The "BEST" five stocks for the week were: LONG, TSL, UTSI, SNP and HTX. ELong Inc. said it will announce fourth quarter financial results on February 26, 2008. There is a strong chance that the company will beat analysts expectations, estimates that the company will return to the black. Elong has long been conceived as underdog when it came to industry rival Ctrip.com (CTRP). Ctrip.com has been delivering strong earnings with impressive earnings growth and came under fire lately after heavy snowstorms created havoc right before the Chinese New Year. Bad weather halted trains, mass transportation all over China, denting into CTRP's profit.

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.

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.

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!

Strong market sentiment is expected to propel China ADRs even higher on Monday. Reasons and trading ideas.

Technical analysis of China ADRs. Stocks mentioned: NTES, BIDU, CHL, SOHU, ACH, CEA, YZC, SINA