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 Dow Jones industrial average fell 44.55, or 0.36 percent, to 12,220.58, after rising more than 100 points in earlier trading. On Tuesday, the blue-chip index fell 370 points, or 2.93 percent.
Broader stock indicators also gave up gains. The Standard & Poor's 500 index fell 7.55, or 0.56 percent, to 1,329.09, and the Nasdaq composite index fell 21.00, or 0.91 percent, to 2,288.57.
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.
|
Index |
Date |
Value |
Today |
|
CAI |
2/6/2008 |
838.38 |
-29.04 |
|
CYI |
2/6/2008 |
841.46 |
-28.63 |
|
CQI |
2/6/2008 |
754.71 |
-40.18 |
NASDAQ listed Chinese ADRs suffered a heavy blow. Baidu.com Inc. (BIDU: Quote Profile Research) was hit on news that Music companies sue China's Baidu, Sohu and that Google is preparing to set up a joint venture with a Chinese online music company that would permit it to provide free -- licensed -- music downloads in China. Related story from the WSJ is here. Baidu.com lost $-23.49 or -9.3% to finish the day at $230.00.
JA Solar Holdings Co. (JASO : Quote, Profile, Research) extended its slide from all time high of $76.50 to close down -$3.80 at $46.45. Chinese solar companies are on a serious retreat after spectacular gains in 2007. Once international markets turned sour, small cap once hot sectors suffered heavy blows.
Chinese internet portal Sohu.com Inc. (SOHU: Quote Profile Research) reported strong game revenue growth on February 4 but disappointed investors altogether, sending its shares down 12 percent since then. (Sohu.com Reports Fourth Quarter and Fiscal Year 2007 Unaudited Financial Results) A downgrade following the earnings call did not help the company either.
Ctrip.com (CTRP: Quote, Profile , Research) , China's premier online travel agency gave up $-1.26 or -2.65 percent to close down at $46.23. Despite recent upgrade to buy from neutral at Goldman Sachs, the company lost steam since Monday on rising concerns if unusually cold winter in China will dent into profits. Goldman said secular consolidation trends among travel-related resources will more than offset the cyclical slowdown risk. Goldman Sachs also raised its 12-month price target on the stock to $67 from $50.
Venturing into NYSE listed Chinese stocks, PetroChina (0857.HK: Quote, Profile , Research)(PTR: Quote, Profile, Research)(601857.SS: Quote, Profile , Research), top oil and gas producer, continued to weigh on the China NYSE Index (CYI). The problem for PetroChina is twofold: for one, the Company announced on its website last Friday that its one billion A-shares will be available for public trading on the Shanghai Stock Exchange on Feb. 5. PetroChina locked up the one billion A-shares public trading on Nov. 5, 2007. The other problem is weather related as the unusually cold weather is expected to cause production disruptions, this lowering profit estimates for the first quarter. PetroChina lost -$7.78 or -5.24% to end the day at $140.57.
China Mobile (Hong Kong) Ltd. , (0941.HK: Quote, Profile , Research) (CHL: Quote, Profile , Research) , the largest mobile carrier, continued to slide on speculations that the planned industry revamp will hurt the company. Shares of China Mobile lost -$1.81 to close at $72.39.
Yanzhou Coal (1171.HK: Quote, Profile , Research) (YZC: Quote, Profile , Research) , China's third largest independent coal producer lost -$4.07 or 4.70% to end the day at $82.48 on no specific news. The stock is down -8.13% or -$7.30 since Monday when Motley Fool analyst Will Frankenhof became bullish on the stock. Related Chinavestor analysis is here.