Based on the Company’s preliminary statistics, as of 30 June 2008, the Company’s total power generation based on a consolidated basis amounted to 91.448 billion kWh, an increase of 13.43% over the same period last year. The power generation of Yingkou Power Plant, Yuhuan Power Plant, Qinbei Power Plant, Weihai Power Plant, Luohuang Power Plant and Nantong Power Plant increased significantly as compared to the same period last year.

After two hours of trading it seems as if we got it right: oil refiners Sinopec (SNP) and Petrochina (PTR) are up $2.73 and $2.72, respectively while CNOOC Ltd. (CEO) is on the bottom of the list by giving up $2.17. You might call it an easy shot after softening oil prices it was no brainer how the Chinese oil triumvirate will trade.

Lowering oil prices will help Chinese refiners to trim losses - so it should give a sizeable boost to Asia's largest refiner Sinopec (SNP) and also to Petrochina (PTR), China's largest integrated oil company. CNOOC Ltd. (CEO), China's offshore specialist with no refining capacity will feel a pinch - a 2%-5% drop in a few days is likely.

The China ADR Index (CAI), measuring market cap weighted performance of Chinese ADRs listed in the NYSE, NASDAQ, and AMEX, lost 28.30 points after two hours of trading today and is down by 28.94% year-to-date (YTD). Large cap, mostly state enterprises listed on the NYSE lost -29.02% YTD while small cap Chinese stocks fueled by entrepreneurial spirit are holding back a little better by losing 26.84% YTD.

Huaneng Power, China's largest independent power generator, announced 2008 first half interim results. The document reveals that power generation grew by 13.43% on average - similar to that of Datang Power - however the company swung from profit to loss. While the company reported net profit of RMB2.936 million ($370 million) in the first six months of 2007, this all diminished during 2008 Q1. The underlying problem is high coal price. Beijing introduced a price cap for thermal coal as of June 20th and increased wholesale price of electricity by 5.45% but these measures came too late and are doing too little. As a result, all major Chinese power generators are in the red with no clear indication when they would return to profitability.

Datang Power (0991.HK), the second largest power generator in China, announced that power generation for the first 6 months of 2008 increased by 11.08% to 62.3 billion kWh. This growth is attributed to additional installed capacity during the first half of 2008. Total installed capacity during the period amounted to 3,812 GWh. For detailed breakdown of power generation to generating plants please read the following press release.

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.