Aluminum Corp. of China (ACH) shed another $.30 today to close at $27.39, a 52 week low. What's wrong with the company when aluminum prices are hitting records at the London Metal Exchange? The problem is not aluminum but alumina. There is significant overcapacity and Chalco is partially to blame for it. So one of our analyst looked into supply and demend of aluminum and more importantly, alumina. here she comes.

1. Strong Advertising Business Growth In Q1 2008, SINA delivered a growth of 51% yoy in its advertising revenue to 47.8 million dollars. The Olympic Games is the main driver of the increases in the adverting revenue, especially in Q3 2008. In the post-Olympic Games period, it is likely that the growth rate will drop to a lower level. Sohu, the biggest Internet firm on the mainland expects core advertising revenue to grow up to 45 percent this year, but it warned the growth may taper off to about 20 to 30 percent in 2009. As the advertising revenue of SINA represented over 60% of total revenue in Q1 2008 and 69% for year 2007, the large drop will adversely affect the performance of SINA in 2009.

Oil came back $2.16 to settle at $131.04 at the New York Mercantile Exchange sending investors to cash in previous gains. Bank of America reported better-than-expected losses following similar announcements from Citigroup, JP Morgan & Chase and Wells Fargo. Some take this as if the worst is over however earnings prospects are soft for many industry leaders such as Merck and Schering-Plough Corp. Despite weakness in the U.S. markets shares of Chinese companies listed in the U.S. ended the day on a high note. The overall China ADR Index (CAI) gained 14.38 points today with NASDAQ listed Chinese ADRs outperforming their NYSE counterparts.

Business Overview The9 Limited, incorporated in December 1999, is a leading online game operator in China. As of March 31, 2008, The9 City had close to 38.1 million registered users. The Company’s business is primarily focused on operating massively multiplayer online role-playing games (MMORPGs). Its major products include: - Affiliates operating licensed games, e.g. World of Warcraft (WoW), MU, Soul of The Ultimate Nation (SUN) and Granado Espada (GE). - The proprietary MMORPG, e.g. Joyful Journey West and Warriors of Fate Online. - Other exclusive licensed MMORPGs and advanced casual games, e.g. Hellgate: London, Ragnarok Online 2, Emil Chronicle Online, Huxley, FIFA Online 2, Audition 2, Field of Honor, Audition and Atlantica. - Other Products and services, include game operating support, website solutions and advertisement services, short message service (SMS), sales of its Pass9 system, and licensing of its games to third parties.

Based on the success of previous post (China ADR momentum stocks using 10-DMA and 30-DMA) when we highlighted stocks with outstanding momentum, we take a look at the week from a technical point of view. Notable Chinese ADRs are:

CNOOC Ltd. is facing the following pressing issues:Weaker growing momentum, Deep ocean extensions continue, Hold conservative forecast,

Financials led rally yesterday caught Chinese ADRs on fire, too. This week has been rewarding for China stock investors so far. As the following table displays, 38 Chinese ADRs are on the black vs. 8 on the red since last Friday. We are here to find stocks with outstanding momentum, a momentum that can carry on for the rest of the week. To accomplish this ambitious goal, we'll use simple technical indicators, 10-day, 30-day, 50-day , and 200-day moving averages or DMAs.

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.