The biggest driver of Chinese economic development is export, and the U.S. is the second biggest trading partner with China. If the U.S. slows down, I think consumer products will definitely feel it seriously. Chinese officials have stated that the U.S. slow-down would have a negative effect on Chinese export. Of course, we can say, there are still other countries, but in my opinion, they do not have as strong consumption power as the U.S. has. The trading relationship between us and EU is not quite good. The EU committee has issued a number of policies against importing Chinese goods, such as, anti-products-dumping.

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.

Shares of Chinese companies listed on U.S. exchanges experienced one of the worst month in history. The China ADR Index (CAI), an overall barometer for the performance of all Chinese equitites listed on the NYSE and NASDAQ combined, lost -15.60% and the last trading day hasn't started yet.

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.

The problem is that this upswing is not likely to cause any effect on current NYSE and NASDAQ listed prices of Chinese shares, simply because this bounce back was caused by Wall Street and not the other way around. Basically Hong Kong listed prices just reacted to yesterday's trading in the U.S. and as such will have negligible effect on today trading.

9:30 A.M. reading: Chinese indices plunged with NYSE listed Chinese stocks most. NASDAQ listed Chinese stocks have been already beat up and finally, NYSE names came down, too. PetroChina (PTR), Sinopec Corp (SNP), China Telecom (CHA) and China Mobile (Hong Kong) Ltd., (CHL) dragged the NYSE listed China stock index (CYI) to historical lows since its inception. CYI lost -13.15 percent versus last Friday, posting its single biggest one day drop ever. Among NASDAQ names, Baidu.com Inc. (BIDU) , Focus Media Holding Ltd. (FMCN) , Ctrip.com (CTRP) and JA Solar Holdings Co. (JASO) were most severely hit.

With all these changes ahead, China stock investors want to know why China Mobile (CHL) is boosting a significantly higher subscriber grow rate than China Unicom. Is it because of China Mobile's wider coverage and superior network? Does CHL have better coverage in rural areas? How good/bad is CHU's CDMA network?

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.