With no action in China in due to the Chinese New Year kicking in, U.S. listed Chinese stocks or adrs tracked U.S. market sentiment very closely. Regarding the home market, Wall Street finished a dismal week with a mixed performance Friday as investors grappled with fears about insurers of distressed mortgage-backed bonds and anxiety about the broader economy. The DJIA dropped over 60 points while the NASDAQ composite gained.

Chinese New Year celebrations closed down the Hong Kong and Shanghai Stock exchanges. This has no effect on the trading of Chinese stocks listed on U.S. exchanges. The China ADR Index (CAI) gained 21.14 points on Thursday, fueled by strong gains in the telecom sector, particularly CHL.

1:00 pm : The major indices are trading near their best levels of the session after a broad-based rebound. Baidu.com Inc. (BIDU) came back especially strong lifing the China NASDAQ ADR Index or CQI. China's solar companies are showing some strength, JA Solar Holdings Co. (JASO) and China Sunergy Co. (CSUN) in particular.

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 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.

National Development and Reform Commission (NDRC) admitted yesterday (on the 28th) in the “Year 2007 economic news conference” that in 2008, prices will continue to rise. This will have effect on the consumer market prices as they will continue to increase.

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.