Trading in Hong Kong is not always a good indicator to find direction for Chinese stocks listed in the U.S. It goes the other way around: should Chinese ADRs have a great day in New York be sure they'll extend gains in Hong Kong. However we think it is different today: keep a close eye on events in Hong Kong last night.

As we know we had a volatile trading in the U.S. - especially when it came to oil. Eventually oil dropped over $6 a barrel, a drop not seen in 17 years. Prospects of a slowing U.S. economy and lowering oil prices stirred up markets and especially some notable sectors. So let's see what we expect from today's trading.

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.

Another large cap Chinese company, China Life Insurance (LFC), will have an interesting day today. LFC reported net premiums to rise 47% in the first half of 2008 vs. corresponding period in 2007. Total assets the company manages reached RMB1.2 trillion ($176,5 billion), making it the largest domestic institutional investor in China. Assuming that the Shanghai Composite Index will head north after losing over 50% YTD, China Life insurance has a huge upside potential.

We think companies that look attractive for today's trading include Baidu.com (BIDU), NetEase (NTES) and Sohu.com (SOHU) from the NASDAQ. These companies showed up in our internal Oversold/Overbought report (available for Premium members only) suggesting they present potential upside.

LDK Solar (LDK) had a great day yesterday on news that it secured wafer supply for another ten years. Given LDK's superior technology and logistics network, we believe LDK will extend gains throughout today's trading session.

By looking at yesterday's top movers from the Chinese stock universe, it seems as if yesterday's losers will become today's winners. We will see. Wish you successful trading.