Chinese stocks had a volatile week: UTS Starcom recorded an impressive 21.1% gain just this week followed by Guangshen Rail (GSH) with a 11.6% jump, China Life Insurance with 9.1% gain and Yanzhou Coal (YZC)'s 9.0% rally. On the negative side Comtech Group (COGO) crashed losing 45.5%. What next week is going to bring us? The following table comes handy while looking for momentum stock. One common measure is looking at daily moving averages or DMAs. Important is the direction of the DMA, it's value relative to the last closing price and finessed investors look for difference between 10-, 30-, 50-, and 200 DMAs. Our method is this: we like stocks that fulfill the following conditions:

Shanda is the largest online game company in China and currently manages more than 20 online games. Shanda's products range from massively multiplayer online role-playing games (MMORPGs) and casual games to the family entertainment platform and online game platform. In 2008 Q1 net revenue rose by 9.2% QoQ and operating income increased 11.9% QoQ. MMORPGs remained the most profitable line and generated approximately 81% of its quarterly revenue. In addition, revenue from casual games grew by 36.5% QoQ, partially due to the Chinese New Year and student holiday. Under the Come-Stay-Play (CSP) revenue model, Shanda’s active paying accounts (APA) have increased by 19.2% to 6.03 million, but at a low conversion rate of 8% (to paying customers). Meanwhile average monthly revenue per active paying account (ARPU) of MMORPGs decreased 10.10%. Also, Shanda has decided to delay the launch of Tianxia in consideration of the recent catastrophe in Sichuan. A further concern about the business model Shanda will apply to the launch of Tianxia brings more uncertainties about the game’s profitability. Looking at competition, there are nine major game operators in China at present with ever increasing competition. And just how strong competition remins, let's just take a look at operating and net margins of four large game operators: Shanda Internactive (SNDA), The9 Ltd (NCTY), NetEase Inc (NTES) and Giant Interactive (GA).

Chinese companies listed on U.S. exchanges opened mixed today, reflecting the uncertain direction of U.S. markets today. Notable companies are 51job Inc. (JOBS), Yanzhou Coal (YZC) on the positive side and Baidu.com (BIDU), CNOOC Ltd (CEO), Sinopec (SNP) and China southern Airlines (ZNH) on the negative side.

Shares of China's largest aluminum maker, Aluminum Corp. of China (NYSE:ACH) or simply CHALCO, jumped over 10% today thanks to news that China's top 20 aluminum smelters will cut production by 5-10 percent, eliminating an excess capacity of around 1,000,000 tonnes. The news sent price of aluminum up $130 a tonne to $3,350/tonne at the London Metal Exchange from Wednesday to Thursday.

China's largest coal miner, China Shenhua Co. (1088.HK), announced changes to on-grid tariffs its power plans will charge in the future. Shenhua is not only China's larget coal miner by output but operates a significant power generating capacity in various regions in China. Based on capacity and other factors, the above increase represents an average increase of 13.8/Mwh Yuan or an increase of 4.53%.

Rising tension in the Middle East send oil higher. Iran fired 9 long and medium range missiles in the Hormuz straight, increasing tensions in international oil markets. Result: oil is up again - Stocks pull back in early trading as oil rebounds As the following chart from Google finance clearly demonstrates, when oil goes up airliners tank. We have two large Chinese airliners listed in US exchanges - Chinese airliners had a great day in Hong Kong while we were sleeping. As the following short summary of most active stocks in Hong Kong testifies, shares of China Southern Airlines (1055.HK) gained 5.9%. Air China (0753.HK) went up 5.4% while China Eastern Airlines (0670.HK) gained 5.0%.

While NYSE listed Chinese ADRs are the large cap, former state owned conglomerates or industry leaders - blue chips - NASDAQ listed Chinese ADRs represent Chinese small to medium cap stocks with more entrepreneurial spirit. NYSE listed stocks are considered low risk/low return stocks when it is measured by average P/E. However NYSE listed china stocks had a surprisingly strong 2005-2006 and 2007 performance, well outshining NASDAQ listed ones.

You got to love this: based on the Overbought/Oversold indicator, three stocks are set to do well today: Chine Unicom (CHU), China Eastern Airelines (CHA) and Huaneng Power (HNP). Remember, this technical indicator is posted for Advanced level subscribers at Chinavestor.com each morning before the market opens. See how you could have made money today: by looking at the chart

Changes to the previous posting: "Beat Management's Guidance", the logic behind was not so clear hence chart is deleted. Some statistics table on the front are gone, while some charts in financial analysis section are added such as net income growth, EPS etc. The share repurchase part is also modified.

China's largest independent power generator, Huaneng Power International (HNP), disclosed tariff increases in a statement. (for document, click here) According to the document published by the Hong Kong Stock Exchange, Huaneng will increase on-grid tariffs of its coal powered power plans by RMB19.32/MWh or 5.16%, on average. The increase is effective as of July 1, 2008. The increase will add 5.16% to Huaneng's revenues on top of favorable coal price purchases. The same day, June 20th, Chinese regulators capped coal prices miners can charge power generators; making it a double whopper. Not only will revenues for Huaneng increase by tariffs hike, but costs of goods sold will be lower than previous quarter. This makes Huaneng a lucrative stock at current prices (trading $26.08 as we speak).

On 27 June 2008, the Company completed the Acquisition of SinoSing Power from Huaneng Group. Immediately following completion of the Acquisition of SinoSing Power, TPGS became an indirect non-wholly owned subsidiary of Company and is owned as to 75% by Tuas Power, an indirect wholly owned subsidiary of the Company, and 25% by GSPL which is a subsidiary of Temasek. Temasek therefore became a substantial shareholder of a subsidiary of the Company and a connected person of the Company under the Hong Kong Listing Rules. By virtue of being an associate of Temasek, each of Tuas Power Connected Persons became a connected person of the Company for purposes of the Hong Kong Listing Rules.

On 27 June 2008, the Company entered into the Sale and Purchase Agreements with the Buyer regarding the sale and purchase of the Aircraft in accordance with the terms and conditions thereof. To the best knowledge, information and belief of the Directors having made all reasonable enquiry, the Buyer and its ultimate beneficial owner(s) are third parties independent of the Company and connected persons (as defined in the Listing Rules) of the Company, and are not connected persons of the Company.

There has been a lot of action within the Chinese oil industry lately and I think this might be a good time to sum all important news into a reasonable summary. First of all, China has three publicly traded oil companies: Petrochina (PTR), Sinopec (SNP) and CNOOC Ltd. (CEO). These companies went public on the NYSE first, then in Hong Kong and recently in Shanghai. Since Chinavestor is a china stock analyst for the U.S. investors, we'll cover NYSE listed ADRs only. Note: Hong Kong listed H-shares correlate very closely to the NYSE listed ADRs, so basically there is not much difference there. The difference comes in from Shanghai, China's domestic stock market because it is closed for foreigners and thus price distortions occur.

Shares of chinese companies listed on the U.S. exchanges opened up mixed. China Mobile (CHL), the world's largest mobile phone company by subscriber number came back strong in Hong Kong, signalling a good start for the day in New York. The positive outlook of the industry leader had a positive effect on smaller players such as China Ntecom (CN) and China unicom (CHU). All three Chinese telecom companies are between 2.38% and 1.55%.