The following table sums up weekly performance ranking of U.S.-Listed Chinese Stocks (9/5/2008-9/12/2008). Huaneng Power (HNP), China's largest independent power producer, tops the list by a 9.9 percent showing. 51job Inc. (JOBS) is next, a technical rebounce following a 25% dive after reporting worse than expected 2008 Q2 results on Aug 7. On the bottom of the list we have four small cap NASDAQ listed Chinese ADRs. As fundamentals come back to play in a bear market, low quality earnings and slow growth prospect hurt small cap Chinese ADRs even more.

The paper introduces the situation of Chinese enterprises listed overseas from 2003 to 2005. A comparison of the characteristics of three major listing places - HK, US and Singapore - is made at beginning, in terms of the number of equities listed, the amount of capital raised, P/E ratio, the character of the enterprises, refinancing, liquidity, cost, etc.. For the US market, the thing is there was 8 IPO in 2005 and $1.144 billion was raised. Most of the equities were in the industry of communication and IT. It took a relatively shorter time for enterprises to be listed, but with a higher cost. And the refinancing and liquidity of the equities was just okay.

Following our fundamental analysis two questions require additional insight: stock based compensation and cash vs. credit card use in air ticket bookings. Stock based compensation is important to asses because the company reported impressive net income growth without stock based compensation but we need to know how much this particular cost is to get a clear picture of the company's ongoing operations. We remember Sinovac (SVA), a small biotech firm, using U.S. equity markets to enrich employees by distributing raised capital via stock based compensation. In this extreme case cost of stock based compensation surpasses that of all SG&A if my memory serves me well. Long story short; we need to know the dynamics of this cost item because according to GAAP stock based compensation is just another cost item and should be incorporated into SG&A.

Quick outlook for Chinese ADR trading today. What we knew before, that Lehman's drag on the DJIA will have significant impact on Hong Kong and Asian trading, came as no surprise. As the saying goes " if the U.S. sneezes the world catches a cold" proved to hold true again. Hong Kong listed Chinese shares, H-shares, were on retreat as a result. The good news is that Shanghai listed Chinese shares, a market that is largely closed for global equity funds, was less effected by U.S. sentiment but rather took refuge in lower oil and high trade surplus news. Sinopec (SNP), Asia's largest refiner gained 1.34% in Shanghai (SHA:600028) while it fell 3.58% in Hong Kong (HKG:0386).

Concerns over Lehman sent the Dow nose-diving, erasing almost all of the gains from the previous session. Chinese ADRs couldn't escape the bloodbath tracking Wall Street all the way. Shares of Baidu.com (BIDU), China's premium search engine company, got hit the hardest shedding $20.25 followed by CNOOC Ltd.'s (CEO) $10.41 fall. China's oil sector fell along weakening oil prices, a surprise for Sinopec (SNP) and Petrochina (PTR). Shares of PTR and SNP used to move in opposite direction from oil. High price of crude sent these large refiners into the red so easing oil should help them and not hurt. However market sentiment overrode conventional wisdom and all Chinese oil majors got hurt, as a result.

Big market days are good for the use of technical indicators. This is when technical indicators come into play by visually representing where a stock is trading relative to her peers. So from this respect yesterday was a good day - lot of action on the NYSE and NASDAQ. Chinese ADRs got caught in the wind and traded actively. But just to see where they are relative to their trading characteristics, the following picture is worth a thousand words. They are all beaten and oversold. Take a look at China Eastern Airlines (CEA). The stock has come down a long way with no clear indication where the bottom is.

News that Freddie Mae and Freddie Mac will be taken over sent American indices soaring for the day. Strong market sentiment spilled over to Chinese companies listed on U.S. exchanges. But just how much they rallied - or which ones made investors cheer or cry - is summed up by the following table. This table is designed to sort Chinese ADRs based on their performance measured by change in dollars. The best stock was Baidu.com (BIDU), China's search engine giant, adding $3.72 to Friday's close. The stock is way oversold and is seen by many as a possible come back kid. Stronger dollar pushed Asian refiners higher as oil fell. Sinopec (SNP), China's largest refiner gained $.74 followed closely by Petrochina's (PTR) $.36 gain.

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.