As the following table tracking top movers from the China ADR universe, Yanzhou Coal (YZC) - China's third largest and only U.S. listed coal miner - is taking the top spot. The stock is trading $2.30 higher vs. yesterday's close. Is it a technical rebound? Absolutely! How do we know? Check this out: Yanzhou Coal (YZC) : Is it oversold? - a post on this very same blog dated June 20, Friday. Here is the quote: "Going back ot Yanzhou Coal: a temporary freeze on coal prices means previous earnings calculations are off the window. So it's time to readjust YZC to new regulations.

As at the record date (i.e. 23 May 2008), there were totally 12,055,383,440 shares of the Company entitled to attend the EGM and to vote for or against the resolution tabled thereat. Shareholders and authorized proxies holding an aggregate of 9,906,082,864 shares of the Company, representing 82.17% of the total shares of the Company, were present at the EGM. Holders of 580,467,886 H shares of the Company, through HKSCC (Nominees) Limited, appointed the chairman of the Meeting as their proxy to attend and vote on their behalf. Holders of 998,372,440 H shares of the Company, through HSBC Nominees (Hong Kong) Limited, appointed the chairman of the Meeting as their proxy to attend and vote on their behalf.

Large cap Chinese ADRs helped lifting the China ADR index (CAI) by 3.96 points. Still, the index lost a quarter of her value since the beginning of 2008 and jittery market conditions in the U.S. keep pressure on Chinese stocks. Couple of stock of interest: Aluminum corp. of China (ACH). The stock lost another -2.54% today on weak outlook. Today's performance came as no surprise to us, because events just unfolded as we predicted it on last Saturday. Here is the actual posting on the blog from last week

Shares of Chinese companies listed in the U.S. opened mixed to day after steep losses in last week. oil compnies are in focus again. China's offshore specialist, CNOOC Ltd. (CEO), is enjoying a ride on the back of strong oil prices. The stock is up $4.25 or 2.68% at the open. High oil prices hurt refiners. Asia's largest refiner, Sinopec (SNP) opened -0.23 percent lower while Petrochina (PTR), China's largest oil produceer with a significant refining on its own, opened -0.65 percent lower. China's decision to increase gasoline and diesel retail prices last week sent prices of refiners out the roof just to see them tumbling the next day. Overall SNP and PTR are trading sideways signalling as if the markets haven't figured out what to make out of the price increae combined with record oil prices yet. SNP is red while PTR is blue on the following chart.

Unicom and Netcom have applied to the Executive for its consent to extend the date of despatch of the Scheme Document to a date no later than 16 September 2008. Unicom has also applied to the Hong Kong Stock Exchange for an extension of time for the despatch of the Circular, which is proposed to be despatched at the same time as the Scheme Document, to a date no later than 16 September 2008.

Shares of Chinese ADRs followed suit tracking Wall Street lower this week. As the following table sums it all up, Chinese ADRs fell -4.2% this week, on average. Losers outnumbered stocks that closed higher for the week by 35 to 11.

A temporary freeze on coal prices means previous earnings calculations are off the window. So it's time to readjust YZC to new regulations. Going back to the original question, if YZC is oversold - the answer is YES! With that in mind a technical correction could swing back YZC $5-$6 next trading day. However given current negative market sentiment, a sentiment that is most likely to spill over to Asia on Monday, investors may have to wait until Tuesday to short all YZC holdings.

We just argued yesterday that unless you acted on time, you missed out the opportunity. Shares of Chinese oil refining related companies have started to rise last week before the news of gasoline and diesel price increase broke out yesterday. As the following Google finance screenshot testifies, shares of Asia's largest refiner by capacity, Sinopec (SNP), rose 18.05% followed by the polyethylene and propylene producer Sinopec Shanghai Petrochemical (SHI). Petrochina, China's largest oil company with significant refining capacity rose 7.67% during the last five days.

Since early 2008, the frozen weather and snow storms in most of the Southern, Northwestern and Southwestern parts of China had resulted in power supply shortage, resulting in temporary complete stoppage of production of certain enterprises of the Company, thereby affecting our production operations. Price hikes of raw materials and fuels including energy also increased our production cost noticeably as compared with the same period last year which led to the decrease in profits.

Shares of Chinese oil companies are leading Chinese ADRs today on news that Beijing will increase price of refined oil and electricity. Shares of China's largest oil company by market value, Petrochina (PTR), jumped $9.78 or 7.27 percent by 11:00 followed closely by Sinopec (SNP) and China's largest independent electricity provider, Huaneng Power (HNP).

We took the risk to say a month ago that “we think Chinese equities are nearing the bottom. Looking at Asia and China in particular, we find both macro and micro economic data to fuel our optimism. “ Since then the China ADR Index (CAI) rallied 7.5% in line with the Hang Seng’s 7.0% comeback, outshining the Shanghai Composite’s modest 3.7% rally. Have Chinese equities bottomed out?

LFC tripled its net profits in 2007, gaining most from the rise of equity markets, however the capital market downturn in 2008 has significantly shrunk LFC’s net profits. This has made LFC’s generic growth a key determinant to its prospects. In 2008, LFC generated a considerably increased premium income as a result of promotion of participating products and increased demand for insurance protection. This can be due to increasing awareness of insurance protection after consecutive occurrence of the natural disasters. In addition to the limited negative impacts of the earthquake, combined with a concern about the uncertainly of equity market performance, and we recommend...(you have to subscribe for premium content)

Stock markets in the U.S. continued to slug: inflation concerns and high oil kept pressure on equity markets. Tuesday's economic data illustrated how the steep run-up in energy costs this year is affecting businesses. The Labor Department data showed that producer price index jumped 1.4 percent in May, the largest increase since last November. The DJIA shed 108.78 points. The S&P 500 index, a measure of the broader market, fell 9.21 points to 1,350.93, while the Nasdaq composite index fell 17.05, or 0.69 percent, to 2,457.73.

China's largest coal miner by output reported a 13.3% increase in commercial coal production in May 2008 from a year ago. Export of Chinese coal came to a standstill in 2007 as China is struggling to feed its growing electricity demand. Nearly two-thirds of Chinese electricity is generated by unsing coal fired power plans. The winter storm related coal supply shortages just highlightened the problems facing both the cola nad the power generating industry.

We published a list of chinese stocks last week. The criteria we used was very simple: if 10 DMA was above 30DMA, a stock qualified. The result is not too rosy: stocks on average lost -6.5% between 6/6 - 6/13. Well, it is also noteable that last week was a bloodbath for Chinese stocks not just in the U.S. but worldwide. The Hang Seng Index in hog Kong lost 1,810 points from 24,402.18 points to 22,592.30. This is a 7.4% drop just in one week!