Price of Aluminium Corp. of China (NYSE:ACH) is down 18% year-to-date. This should not surprise many as the company reported weak 2007 Q4 and an even worse 2008 Q1 financial results. The company had to tap into short term borrowings of RMB 4.7bln in order to keep cash flow position stable. However this took a hit on liquidity measures. Underlying reason is overcapacity of alumina. For additional info, read the following story.

The underlying reason for the drop is very simple. The company announced in a statement that the provincial government of Shandong, where Yanzhou Coal is headquartered, had introduced a temporary price cut for thermal coal in the next three months. The argument goes that the provincial government wants to secure electricity production for the upcoming summer months when demand peaks. We saw Huaneng Power (NYSE:HNP), China's largest independent power generator, to report an 80% drop in first quarter profits due to high coal prices. The problem is that state-set power prices have not been increased since June 2006. Some fear that high coal prices prevent local power generators to stock up coal before the peak summer season, endangering smooth power supply.

We have noted the recent decrease in the price of the H shares of the Company today and wish to state that we are not aware of any reasons for such decrease. We also confirm that there are no other negotiations or agreements relating to intended acquisitions or realizations which are discloseable under Rule 13.23 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the “Listing Rules”), neither is the board of

The Company estimates that the 2008 Coal Export Contract will result in an increase in the Company’s revenue by RMB224.93 million for the year ending 31 December 2008, representing 1.4% of the revenue of the Company for the year ended 31 December 2007. This announcement is made pursuant to Rule 13.09(1) and 13.09(2) of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited.

The boards of directors of Unicom and Netcom refer to (1) the Announcement on Deepening the Reform of the Structure of the Telecommunications Sector dated 24 May 2008 jointly issued by the Ministry of Industry and Information, the National Development and Reform Commission and the Ministry of Finance of the PRC which states, among other things, that the PRC government will deepen the reform of the structure of the telecommunications sector, and encourage the formation of three market competitors where each has nationwide network resources, relatively comparable strength and scale, as well as full service operation capabilities, that the allocation of telecommunications resources will be further optimized and the competition structure will be improved, and that three 3G licences will be granted once the contemplated restructuring is completed, and (2) the announcements issued by Unicom and Netcom on 25 May 2008.

Chalco did not perform well in sales in the first quarter 2008. Its gross margin only reached 19% compared to yearly gross margin of 25% as of 31 December 2007. The declining trend had begun in the second-half of 2007 from which aluminum price in China declined and raw material costs increased. Company had been boosting output for the purpose of taking advantage of lower product price, but objectively suffered pressure on increased raw material price, power and transportation cost. By March 2008, quarterly net profit dropped to 1.3 billion yuan which is only 58% of the third quarterly net profit in 2007. Total cost of revenue, however, increased by 5% accompanied declining sales in the same period.

On 26 May 2008, pursuant to the mediation arrangement of the Supreme Court of the People’s Republic of China as implemented by the Higher People’s Court of Shandong Province, Yanzhou Coal has released the 200 million shares in Huaxia Bank Company Limited that were transferred to Run Hua Group Limited (“Run Hua Group”) to enable Run Hua Group to finance the settlement of the principal and interest of the entrusted loan owed by Lianda Group Limited to Yanzhou Coal. Yanzhou Coal announces that it recovered the principal and interest of the entrusted loan in the amount of RMB780 million on 30 May 2008.

Despite surging commodity prices and a weak dollar shares of China's largest aluminum and alumina maker, Aluminium Corp. of China or CHALCO, are down 16.57% year-to-date (YTD). The question is: what's wrong with Chalco? Chinavestor reached out to different analysts to find some clues. Here is Chalco's first quarter performance from a fundamental analyst's point of view.

Stock markets have been keeping a close eye on oil prices as a proxy for near term momentum. For today, as oil fell close to the $130 range before news on US oil inventories, the markets may take a breather. But for China, oil is a different story. Fears of rationing of diesel have been around as the summer season nears. The latest reports suggest that diesel rationing spread from coastal areas to big cities such as Shanghai, Ningbo, Beijing and Guangzhou. The question remains: are China's oil triumvirate capable of securing China's oil needs. On the investor corner, we give you tips how to benefirt from the current situtaion.

Shanda is the leading online game company in China. Its 4th Qtr earning in 2007 has surpassed analysts’ estimation. Its diversified online game lines, robust profitability of each line, and Come-Stay-Pay (CSP) revenue model contribute to its robust profit. Also, its “online game platform” strategy enables its game pipelines to be fulfilled in a timely manner. It is expected to remain such strong earning in the next period.

China's telecom industry restructuring got the green light on Saturday, May 24, 2008. This is the Chinese telecom landscape before and after. While the general idea of leveling the battleground for telecom players may sound well, the end result will be three seemingly similar, yet different companies. As an investor, you should look into details to get ahead of the game.