Chinese ADRs have accumulated substantial momentum lately. We like to use different technical indicators to gauge the market and pick up stocks that offer trading opportunities. One of these indicators we use is daily moving averages or DMAs. A stock has to satisfy the following criteria to catch our attention: Current price has to be above 50 DMA - first column under Technical section Current price has to be above 200 DMA- second column under Technical section 10 DMA has to above 30 DMA- third column under Technical section Additionally we like when 50 DMA and 200 DMA curves are positive or show an increasing pattern.

As the following screenshot of the Chinese ADR universe testifies, stocks that are interesting from a technical point of view are BIDU, CHU and SNP on the upside and Sohu on the downside. Baidu.com (BIDU) is on fire since releasing 2008 Q2 earnings last week. The stock slowed down today, gaining only $2.12 or 0.61% today - just in line with Google's trading pattern today. (see chart here). Based on stock characteristic calculations, theoretical high of $394 is not too far for Baidu.

Chinese ADRs are trading mixed today with Baidu.com (BIDU) taking the lead and Sohu.com (SOHU) taking a beating. Easing oil prices helped spur the DJIA to 11,315.00 points by 1:00 P.M. Lowering demand for the black gold became obvious today when statistics showed that U.S. drivers drove 3.5% less miles than last year, the biggest ever drop for the measure during the busy summer holiday season. Customs data showed that demand for oil dropped by 891,000 barrels in June vs. May, a sign that high price of oil is unsustainable. Many expect crude to come back to the $100 level within reasonable time. The greenback strengthened against both the Euro and the yen, adding fuel for the slide in the oil price. Looking at the U.S. listed Chinese stock universe, Baidu.com is shining the brightest today so far. China's premium search engine company is up $4.06 or 1.21% by 1:00 P.M., continuing a rally that seems to have no end. The price of the stock is up 17.8% since June 23 (chart here) when the company announced better then expected second quarter results plus a positive guidance for the upcoming quarter.

Chinese ADRs are trading mixed today after the lunch with NASDAQ listed names shining more. Baidu.com, China's premium search engine company, is up $7.15 or 2.15% at $339.55, extending gains from last week following better-then-expected earnings. As the following table testifies, large cap NYSE listed Chinese ADRs are pulling down the China ADR Index (CAI). The index lost 24.4% year-to-date (YTD) with notable difference between NASDAQ and NYSE listed ADRs. While the market cap weighted overall index lost almost 15% YTD, NASDAQ listed Chinese ADR Index or CQI holds up much better by shedding -15.4% YTD. This performance is not much different then major U.S. indices themselves.

Fourth week of July was the week we've been long waiting for. Price of oil tumbled while Wall Street ended the week on a high note. Chinese companies listed on American exchanges performed well, too. As the following summary table of the Chinese ADRs listed on the NYSE and NASDAQ suggests, double digit gains were quite common - see column 5 market "change". In fact China's premium search engine company, Baidu.com (BIDU), rallied $40.86 since last Friday in just five trading days. The company announced 2008 Q2 earnings on July 23 after the close sending its shares remarkably higher the next day and breaking through the $300 resistance level.

China's largest independent power generator, Huaneng Power (HNP), announced the issuance of the first batch of a total of RMB10 billion ($1.46 billion) short-term debt. Bank of China acts as primary underwriter. Considering that all major publicly traded Chinese power generators- Huaneng Power, Datang Power and Huadian Power - are in the red due to high thermal coal prices, the announcement from Huaneng shouldn't come as a surprise. On the other hand considering that total current debt for the company is RMB 31 billion, the additional RMB 10 billion is a very substantial increase. On the other hand, as the following table suggests, the company is not over-leveraged and can take on some more debt. Quick and current ratios, measuring short-term liquidity - are just average but the company looks attractive from a liquidity perspective when it comes to a long-term examination.

Datang Power, one of the largest independent power generating companies in China, reveled today that due to high coal prices during the first six months of 2008 the company is expected to swing to a loss. Based on documents submitted to the Hong Kong Stock Exchange, management of the company expects profits to drop by 70% vs. same period last year. Datang Power is feeling the pinch from high thermal coal prices, just as other Chinese power companies do. Similar announcement was made by Huaneng Power (NYSE:HNP) last week and Huadian Power is expected to announce similar earning warning.

Datang Power, one of the largest publicly traded independent power producer in China, today announced on- and off-grid power tariff changes effective July 1, 2008. Chinese regulators let gasoline and diesel prices to increase on June 20th and announced plans tht power generators will be allowed to increase tariffs, also. Datang Power acted accordingly and increase the average on-grid tariff by 17.7 Yuan/MWh representing an increase of 5.23 percent.

China Eastern Airlines Co. Ltd (NYSE:CEA) is the stock of the day when it comes to Chinese ADRs. The stock is the biggest winner of the day by a heafty 8.76% gain or $2.79. In dollar terms only Sohu.com (SOHU) does better today by trading $3.87 higher than yesterday's close. One obvious reason for strenght within China's aviation industry is falling crude oil pirces. since kerosene makes up well over 50% of all costs for airliners, lower prices mean better margins and profitability. The stock got additional boost from rumors that China Eastern Airline (CEA), China's third largest after China Southern Airline (ZNH) and Air China (0753.HK), is considering a cooperation or a possible merger with her arch rival in Shanghai, Shanghai Airlines (上海航空).

Pursuant to Rule 13.43 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and as announced on 3 March 2008, a meeting of Directors of HSBC Holdings plc will be held on Monday, 4 August 2008 to consider the announcement of the interim results for the six months to 30 June 2008 and the declaration of the second interim dividend for 2008. In accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited the announcement will be released on Monday 4 August 2008 after the stock index futures and options market in Hong Kong closes for trading at 4.30pm (9.30am London time).