Chinese ADRS crashed along the DJIA for the week. But there are some notable exceptions like E House (EJ), Comtech (COGO) or The9 Ltd (NCTY). We like Shanda (SNDA), another player from the Chinese online game landscape, and industry leader. Baidu.com (BIDU), China's search engine giant disappointed and solar companies were on a losing streak following strong showing in August. For detailed breakdown of the last week, please find table below.

DJIA lost 344.65 points yesterday, a plunge Chinese ADRs could not escape. Results of weak U.S. performance proved to be disastrous for Chinese equities listed on the NYSE and the NASDAQ. As the following picture demonstrates, the China NASDAQ Index (CQI) lost 46.5 points and is down 20.46% YTD.

The travel industry in China has experienced tremendous change during the recent years with traditional travel companies fading, losing appeals and market shares. Profits decreased sharply as competition became fierce so that companies had to cut their price dramatically to attract customers. On the contrary, new companies like Ctrip.com, eLong and Mangocity have drawn customers’ attention and thrived, representing a relative new industry was born. These companies brought internet and other high technology to their traditional call centers, integrated airline ticketing, hotel reservation and packaged tour together to attract a significant number of “middle class” and young people who do not want to join traditional tourist group but want to customize their tour and still benefit from the low costs. With the number of internet users and “white collar” workers increasing exponentially in China recent years, the potential of such travelling business is becoming remarkable. Despite China shows signs of slowing down, its economy is expected to increase at a considerable rate for the foreseeable future. The demand of such service is going to increase as people’s imposable income keeps rolling over and paid-holiday system keeps improving.

Solarfun published a sound Q2 report on Wednesday. By June 2008, Solarfun reported revenues reach US$ 197.1 million, which increase by 12.7% on quarter-over-quarter (QoQ) basis and 192.2% on year-over-year (YoY) basis. Although current stock market does not perform well due to the high inflation global economics, we still recommend investors holding this stock. As green energy supplier, Solarfun owns its born advantage in current unfavorable energy market. Besides, through objective and rational analysis at current capital market, we believe that behind systematic risk on global market, values for individual stock needs to be emphasized and analyzed from specific angles and be considered within long term time horizon.

Shares of Chinese companies listed in U.S. exchanges performed relatively well in July, spurring investor optimism. By term “relatively well” I mean compared to the DJIA or compared to previous months of the year. As the following chart tracking Chinese equities in Shanghai, Hong Kong and New York testifies, July was a comeback month for Chinese and American shares alike. The DJIA eked out a modest 2.1% gain for the month but the true beneficiaries were the U.S. listed Chinese equities. Looking at the performance of the China ADR Index in dark orange, the index gained an impressive 8.0% just in one month, closing in on the Hang Seng and the DJIA.

Most Chinese investors are increasingly turning bitter realizing that Olympics related hopes of a fast recovery of the stock market is fading away. But remember, we pointed out in our last Newsletter that Olympics related investment activity is tiny compared to the overall size of the economy and thus we don’t expect the Games to have a significant impact on equity markets. This projection turned to be true as the month of August passed away without any significant change in the direction of the Shanghai Composite Index or the China ADR Index. But solar companies rallied all over the board in August thanks to robust earnings. As the following table of Chinese ADRs sums it up, the best three stocks for aug 2008 were from the solar sector: Suntech (STP), Trina Solar (TSL) and Solar Fun (SOLF).

Huaneng Power (NYSE:HNP), China's largest independent electricity provider announced 2008 first half interim results today. The bottom line is this: total operating revenue were 30,737 million yuan ($4,493 million) vs. 23,144 million yuan ($3,383 million) in 2007 H1 total loss was 544 million yuan ($70.53 million) vs. profit of 2,875 million yuan ($420.3 million) same period last year

While the DJIA rallied on oil, GDP and jobs data, index for Chinese companies listed on American exchanges fell, fell hard. The China ADR Index (CAI) is a market cap weighted index and as such large cap Chinese stocks listed on the NYSE have a substantial impact on it. The index fell 16.54 points today and is down 28.92% year-to-date (YTD). This is in sharp contrast to NASDAQ listed Chinese ADRs measured by the China Nasdaq Index (CQI). The index is up today thanks to the larger Chinese ADRs of Ctrip.com (CTRP) and Baidu.com (BIDU).

Major Terms of the Investment Agreement Pursuant to the Investment Agreement, the Company and Tangshan Investment Company agreed to contribute by way of cash to the establishment of Fengrun Thermal Power Company in the proportion of 84% and 16%, respectively, for the purposes of constructing and operating Fengrun Thermal Power Project.