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.
Looking at individual stocks, the picture is ugly. China's largest oil producer, PetroChina (PTR), lost $14.31 just in one day and is down 44.3% YTD - just as is CAI shown above. Petrochina is not just the largest oil producer but is the first company in history to boost market cap over $1 trillion following her maiden IPO in Shanghai last fall. Times has changed... Wednesday was a sad day for Chinese energy companies in particular. Sinopec (SNP), Asia's largest refiner, shed another $8.61 as investors fled energy to find refuge in bonds a T-bills. Oil actually gained some strength and was up $4.32 on the New York Mercantile Exchange following U.S. inventory reports. Stronger oil failed to help China's off-shore giant, CNOOC Ltd. (CEO) as investors saw the company to plunge $11.16.
Baidu.com (BIDU), China's supreme search engine company shed $12.03 but has been holding up relatively well so far. BIDU is closely associated with the performance of Google Inc's (GOOG), a stock that is down 38.63% YTD. Still, Baidu is solid when it comes to fundamentals and has been reporting better-than-expected earnings for the last six quarters.
Despite the fall of Chinese telecom giants of China Telecom (CHA) and China Netcom (CN), outlook for the sector is good for the short term. Shares of China Unicom (CHU) and China Netcom (CN) rallied 10.8% and 6.8% in Hong Kong following shareholder approval of their merger. News that China's giant telecom industry restructuring is going on as planned sent shares of China's largest mobile carrier, China Mobile (CHL), up 4.3% while China Telecom (CHA) gained 5.2% on Wednesday in Hong Kong trading. This is a good indication that Chinese telecom stocks are set to rally on the NYSE today.
China Life Insurance (LFC) was on the bottom ten falling $3.42 on Wednesday. The fall is likely to continue as Chinese banks reveal their exposure to Lehman and are dragging China's main indices down. LFC is particularly vulnerable to such event as fifteen percent of her income is derived right from the domestic stock market.
It will be difficult for Chinese airliners to recover as oil is gaining some ground under $100. Kerosene is the largest simple cost factor for airliners and strengthening oil hurts the bottom line. China Southern Airlines (ZNH) and Air China reported passenger traffic drop for the months of August after stringent security for the Olympics deterred domestic passengers to fly.
|
Top 10 - Bottom 10 - China ADR |
Sept 17, 2008 |
4:00pm |
|
Name |
Symbol |
Price |
Change |
Change% |
|
|
|
|
|
|
|
GUANGSHEN RAIL CO |
GSH |
$20.71 |
$0.12 |
0.58% |
|
ASIAINFO HLDGS IN |
ASIA |
$9.42 |
$0.11 |
1.18% |
|
LDK SOLAR CO ADR |
LDK |
$40.94 |
$0.05 |
0.12% |
|
TRINA SOLAR LTD A |
TSL |
$25.02 |
$0.04 |
0.16% |
|
LINKTONE LTD. |
LTON |
$1.51 |
$0.03 |
2.03% |
|
|
|
|
|
|
|
COGO GROUP |
COGO |
$5.21 |
$0.00 |
0.00% |
|
I-CABLE COMM LTD |
ICAB |
$25.55 |
$0.00 |
0.00% |
|
NINETOWNS INTER A |
NINE |
$1.86 |
$0.00 |
0.00% |
|
SOLARFUN POWER |
SOLF |
$12.97 |
-$0.02 |
-0.15% |
|
51JOB |
JOBS |
$11.00 |
-$0.05 |
-0.45% |
|
|
|
|
|
|
|
CHINA EASTERN AIR |
CEA |
$16.57 |
-$2.65 |
-13.79% |
|
CHINA NETCOM GRP |
CN |
$37.80 |
-$3.12 |
-7.62% |
|
CHINA LIFE INS CO |
LFC |
$48.79 |
-$3.42 |
-6.55% |
|
CHINA MOBILE LIMI |
CHL |
$44.11 |
-$3.51 |
-7.37% |
|
HSBC HLDGS PLC AD |
HBC |
$72.87 |
-$3.58 |
-4.68% |
|
|
|
|
|
|
|
CHINA TELECOM CP |
CHA |
$35.75 |
-$4.64 |
-11.49% |
|
CHINA PETRO & CHE |
SNP |
$76.52 |
-$8.61 |
-10.11% |
|
CNOOC LTD ADS |
CEO |
$104.91 |
-$11.16 |
-9.61% |
|
BAIDU.COM |
BIDU |
$254.46 |
-$12.03 |
-4.51% |
|
PETROCHINA CO ADS |
PTR |
$92.79 |
-$14.31 |
-13.36% |
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