May 26, 2010 (Chinavestor) Chinese stocks are on the rise on the heel of positive U.S. market sentiment. Strong home stales and factory orders reassured investors that the recovery is for real, helping them focus on the good news instead of Europe's troubles. Energy stocks pulled the iShares FTSE/Xinhua China 25 Index (NYSE:FXI) up 1.2% for the day and small cap China ADR proxy Claymore/AlphaShares China Small Cap ETF (NYSE:HAO) advanced half of that.
Earnings helped, too: Solarfun Power Holdings (NASDAQ:SOLF) beat estimates before the bell, setting a stage for the rest of the market. Yingli Green Enrgy (NYSE:YGE) and Trina Solar (NYSE:TSL) reported earlier the week, all three companies surprising to the upside.
Besides volatile small cap stocks, such as China GrenTech (NASDAQ:GRRF) or Qiao Xing Mobile Comm. (NYSE:QXM), large cap China plays have steadily advanced. Twenty three components of the twenty five member Xinhua 25 Index rose earlier earlier the day in Asia. No wonder the iShares FTSE/Xinhua China 25 Index (NYSE:FXI) is showing strength on Wednesday. Shares of China Telecom (NYSE:CHA), the largest Chinese fixed line carrier, rose 3.8% by noon while Petrochina (NYSE:PTR), the largest Chinese oil producer, advanced 1.6%. Sinopec (NYSE:SNP), Asia's largest refiner, advanced 1.7% by noon on Wednesday.
Solarfun Power (NASDAQ:SOLF) jumped 13.7% on sound 2010 Q1 report. Solarfun beats 2010 Q1 estimates.
Yingli Green Energy (NYSE:YGE) rose over 2% on the news, making up for some of the losses it suffered earlier the week. The company surprised to the upside earlier the week, too. Yingli back to profit, trading at discount.
Higher oil prices helped bio-diesel producer China Integrated Energy (NASDAQ:CBEH) to jump 9.7%.
Liquid, NASDAQ listed China plays advanced, as predicted in the pre-market report, by saying "Volatile stocks may offer the best turnaround opportunities like Baidu.com (NASDAQ:BIDU), Sohu.com (NASDAQ:SOHU), Sina Corp. (NASDAQ:SINA) or Ctrip.com (NASDAQ:CTRP) from the liquid NASDAQ names." Oversold China plays to watch on Wednesday.
Ctrip.com Int. (NASDAQ:CTRP) is up 3.2% followed by Shanda Interactive (NASDAQ:SNDA) with a 2.6% advance. Baidu.com (NASDAQ:BIDU) gave up all its early morning gains by noon - yet remains an explosive stock to pay attention to.