Shares of China Eastern Airlines (NYSE:CEA) are trading +6.1% higher while China Southern Airlines (NYSE:ZNH) is up +5.2%. The rally was foretold - both airliners advanced strongly in Hong Kong - see best five components of the Hang Seng Index below. Shares of Air China (HKG:0753) advanced +2.0%, making it the best stock among the Xinhua 25 Index components.

Shares of China Sky One Medical (NASDAQ:CSKI) bounced back off after an over twenty percent drop yesterday. The sell-off was overdone in our opinion - most if the disappointment was a result of overly optimistic expectations. CSKI falls on earnings. But wait a minute!

Shares of Focus Media Holdings (NASDAQ:FMCN) experienced a highly volatile two days trading session after fourth quarter numbers. The excitement is understandable, Focus Media rattles nerves with Q4 numbers.

Stocks on the negative include solar plays such as Trina Solar (NYSE:TSL). There is no company specific news out there to justify the weakness but when oil falls, so is demand for solar. Conventional wisdom holds that solar makers make money when price of oil is above $60/barrel. If that's the case current sell-off of TSL looks irrational. To gauge how does TSL measure up to the rest of the sector, including industry leader Suntech Power (NYSE:STP), read Complete 2009 Q4 China solar stocks guide.

Shares of HQ Sustainable Maritime (AMEX:HQS) continue to show weakness. Shares of the company are considered oversold - but when a small cap AMEX stock gives way, no one knows where the bottom is. Read Oversold China stocks ready to bounce back.

Shares of KongZhong Corp. (NASDAQ:KONG) made a complete reversal from yesterday. The stock was the best performing China ADR on Wednesday but failed to hold on to gains and is now among the worst five China stocks of the day. Shares of the company are trading -4.8% lower at noon. We were of a view that the 20% surge was too optimistic - read KongZhong up 17%. Will it last?

And finally, a stock that's not as volatile but is certainly a great value stock, China Mobile (NYSE:CHL).  The company reported 2009 full year number today passing by analysts estimates. We have liked this company for a long time and our assessment proved to be true. China Mobile is on the Conservative and Growth portfolios, a stock pick that was a great choice for March. Read: China Mobile 2009 beats expectations.

March 17, 2010 (Chinavestor) Small cap U.S. listed Chinese stocks softened up by the end of the day as earnings fell short of expectations. Fuqi International (NASDAQ:FUQI) fell -37.2% following investigations into the earnings of the company. Worse than expected earnings hurt China Sky One Media (NASDAQ:CSKI), HQ Sustainable Maritime (AMEX:HQS), and Global Sources Inc. (NASDAQ:GSOL) the most on Wednesday. Volatile Rino International (NASDAQ:RINO) took a breather and fell -6.1% for the day. Focus Media Holdings (NASDAQ:FMCN) won the title of "the biggest reversal story" of the day. After an over eight percent jump at the open shares of the company eroded steadily to end the day in the red.

KongZhong Corp. (NASDAQ:KONG) was the best China stock of the day, measured by percent change. With a +20.8% advance in one day, investors were spinning their heads. But we're of a view that future stock price remains uncertain and today's bulls might disappear should market sentiment sour. KongZhong up 17%. Will it last?

Rally of China Digital TV Holdings (NYSE:STV) have been caught by the overbought monitor several times. We will have to run the overbought monitor this time to see if shares of the company became overbought.

Suntech Power (NYSE:STP) is propelled by strong fundamentals. The company reported one of the best quarterly report among its peers with revenue and earnings growth accelerating in 2009. Expect additional gains down the road. Complete 2009 Q4 China solar stock guide.

Shares of China GrenTech Corporation (NASDAQ:GRRF) advanced +4.2% with low volume. Given that the company is going to report four quarter earnings later in March, current strength is just a run up before actual numbers. Investor, exercise caution!

Shares of China Fire & Security Group (NASDAQ:CFSG) advanced +2.52% today bouncing back off from the big drop the day before. We're of a view that current numbers are not as horrible as it might have looked for the first sight. Risk increases for CFSG as earnings disappoint but outlook sweetens.

Another earnings related reversal took place with Focus Media Holdings (NASDAQ:FMCN) today. Shares of the company jumped 8.7% at the open just to see all of the gains evaporate by the end of the day. Shares of the company ended the day -2.21% lower... Focus Media rattles nerves with Q4 numbers.

The biggest decliner of the day by far was Fuqi International (NASDAQ:FUQI). The company announced that it will restate the last three quarter and delay the announcement o f the current quarter. Investigations have started to find any wrongdoings on top of the bad news... But a -37.2% drop if way excessive in our opinion and it just may be a unique opportunity to pick up FUQI shares in the cheap. Don't panic FUQI investor!

Disappointing earnings hurt China Sky One Media (NASDAQ:CSKI)and HQ Sustainable Maritime (AMEX:HQS). Today's weakness of Global Sources (NASDAQ:GSOL) is a technical correction following two days of strong advanced following record earnings. Global Sources 2009 Q4 rocks!