According to documents submitted to the Hong Kong Stocks Exchange, institutional investor continue to snap up shares of China's third largest coal miner, Yanzhou Coal(NYSE:YZC). JP Morgan Chase & Co. (NYSE:JPM) just purchased 3.6 million H shares in Hong Kong. Yanzhou is listed in Hong Kong as well as on the NYSE and thus offers direct excess to American investors.
The reason we follow actions of institutional investors is that when institutions buy, share price tend to rise steadily. This is explained by money flows, an indicator that investors tend to neglect yet we find it extremely useful.
Based on HKEx documents, Morgan Stanley, UBS AG and JP Morgan& Chase are all involved in a massive share purchase in Hong Kong Exchanges and Clearing Ltd.(HKG:0388), the most liquid and accessible market for Yanzhou (388.HK)(YZC).
Based on experience, Yanzhou Coal (HKG:1171) (NYSE:YZC) stock price is expected to rise when institutions buy. Since Yanzhou H-shares and ADRs correlate very closely, expect YZC prices to increase. Yanzhou closed HK$10.18 on Thursday, up 4.73%.
| Investor | Shares [million] | Date | Details |
| JP Morgan | 3.6 | 6/22/2009 | Link |
| UBS AG | 15.9 | 6/16/2009 | Link |
| UBS AG | 19.7 | 6/16/2009 | Link |
| Morgan Stanley | 1.7 | 6/15/2009 | Link |
| Morgan Stanley | 1.1 | 6/15/2009 | Link |
| JP Morgan | 8.5 | 6/15/2009 | Link |
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