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).

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.

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.

You got to love this: based on the Overbought/Oversold indicator, three stocks are set to do well today: Chine Unicom (CHU), China Eastern Airelines (CHA) and Huaneng Power (HNP). Remember, this technical indicator is posted for Advanced level subscribers at Chinavestor.com each morning before the market opens. See how you could have made money today: by looking at the chart

Changes to the previous posting: "Beat Management's Guidance", the logic behind was not so clear hence chart is deleted. Some statistics table on the front are gone, while some charts in financial analysis section are added such as net income growth, EPS etc. The share repurchase part is also modified.

China's largest independent power generator, Huaneng Power International (HNP), disclosed tariff increases in a statement. (for document, click here) According to the document published by the Hong Kong Stock Exchange, Huaneng will increase on-grid tariffs of its coal powered power plans by RMB19.32/MWh or 5.16%, on average. The increase is effective as of July 1, 2008. The increase will add 5.16% to Huaneng's revenues on top of favorable coal price purchases. The same day, June 20th, Chinese regulators capped coal prices miners can charge power generators; making it a double whopper. Not only will revenues for Huaneng increase by tariffs hike, but costs of goods sold will be lower than previous quarter. This makes Huaneng a lucrative stock at current prices (trading $26.08 as we speak).

On 27 June 2008, the Company completed the Acquisition of SinoSing Power from Huaneng Group. Immediately following completion of the Acquisition of SinoSing Power, TPGS became an indirect non-wholly owned subsidiary of Company and is owned as to 75% by Tuas Power, an indirect wholly owned subsidiary of the Company, and 25% by GSPL which is a subsidiary of Temasek. Temasek therefore became a substantial shareholder of a subsidiary of the Company and a connected person of the Company under the Hong Kong Listing Rules. By virtue of being an associate of Temasek, each of Tuas Power Connected Persons became a connected person of the Company for purposes of the Hong Kong Listing Rules.

On 27 June 2008, the Company entered into the Sale and Purchase Agreements with the Buyer regarding the sale and purchase of the Aircraft in accordance with the terms and conditions thereof. To the best knowledge, information and belief of the Directors having made all reasonable enquiry, the Buyer and its ultimate beneficial owner(s) are third parties independent of the Company and connected persons (as defined in the Listing Rules) of the Company, and are not connected persons of the Company.

There has been a lot of action within the Chinese oil industry lately and I think this might be a good time to sum all important news into a reasonable summary. First of all, China has three publicly traded oil companies: Petrochina (PTR), Sinopec (SNP) and CNOOC Ltd. (CEO). These companies went public on the NYSE first, then in Hong Kong and recently in Shanghai. Since Chinavestor is a china stock analyst for the U.S. investors, we'll cover NYSE listed ADRs only. Note: Hong Kong listed H-shares correlate very closely to the NYSE listed ADRs, so basically there is not much difference there. The difference comes in from Shanghai, China's domestic stock market because it is closed for foreigners and thus price distortions occur.

Shares of chinese companies listed on the U.S. exchanges opened up mixed. China Mobile (CHL), the world's largest mobile phone company by subscriber number came back strong in Hong Kong, signalling a good start for the day in New York. The positive outlook of the industry leader had a positive effect on smaller players such as China Ntecom (CN) and China unicom (CHU). All three Chinese telecom companies are between 2.38% and 1.55%.

High oil sent Wall Street lower today, the DJIA sinking 166.75 points to a two year low of 11,215.51 points. Shares of Chinese companies followed suit, the China ADR Index (CAI) losing 38.28 points to close at 701.88. The index is down 29.81% year-to-date (YTD), following negative Wall Street sentiment.

The Acquisition has already been approved by China Huaneng Group in accordance with its internal procedures, as well as by the board of directors and shareholders of the Company and the relevant governmental authorities. All conditions precedent in the Transfer Agreement have been satisfied. In accordance with the Transfer Agreement, the Company has made an one-off payment of the consideration in full to China Huaneng Group.

The AGM was held at Meeting Centre, Shanghai Homeyo Hotel (上海航友賓館), 2550 Hongqiao Road, Shanghai, the PRC on Monday, 30 June 2008. Shareholders representing 3,251,040,427 shares of the Company were present, in person or by proxy, at the AGM. The AGM was validly convened in compliance with the relevant requirements under the Company Law of the PRC and the articles of association of the Company.

On 6 May 2008, the Directors of HSBC Holdings plc declared a first interim dividend for 2008 of US$0.18 per ordinary share. The dividend is payable on 9 July 2008 to shareholders on the Principal Register, the Hong Kong Overseas Branch Register or the Bermuda Overseas Branch Register at close of business on 23 May 2008 in cash in United States dollars, sterling or Hong Kong dollars, or a combination of these currencies and with a scrip dividend alternative.

Stocks in Asia and Europe rose at the end of the month as fears of a deep U.S. recession receded. Despite favorable global economic climate change, Chinese stocks haven’t regained their shine yet. As the chart on the page testifies Chinese domestic shares in Shanghai are off 35% year-to-date (YTD) a far cry for U.S. China stock investors whose benchmark, the China ADR Index is down by 16.7% YTD.