August 20, 2011 (Chinavestor) Now that the Dow Jones Industrial Average (INDEXDJX:.DJI) is off 450 points or 4.0% for the week, China stock investors want to know which stocks fell apart and which ones remained resilient. Besides a wide ride of the markets, Chinese companies had a very busy earnings week with more than 35 companies reporting. That said, investors have to keep in mind that big moves were a result of corporate news more than reaction to market swings.
China XD Plastics (NASDAQ:CXDC), China Information Technology (NASDAQ:CNIT) and General Steel (NYSE:GSI) all reported blockbuster numbers. But disappointing earnings report hurt China Housing & Land Development (NASDAQ:CHLN), Vanceinfo Technologies (NYSE:VIT) and China TechFaith Wireless (NASDAQ:CNTF) the most.
LDK Solar (NYSE:LDK) lowered guidance and got slammed on Friday. But losses were not limited to just one stock, Suntech Power (NYSE:STP) fell before earnings next week along with ReneSola Ltd. (NYSE:SOL).
Baidu.com Inc. (NASDAQ:BIDU) fell along the market despite a record earnings report earlier the month, just like Changyou.com Inc. (NASDAQ:CYOU). NetEase.com Inc. (NASDAQ:NTES) reported record revenues and earnings but fell over 9% on Thursday just as the DJIA collapsed that day.
Here is a quick recoup of the week. Markets were calm for the most part up until Thursday when global recession fears hit the nerves of investors. GDP growth for the engine of the euro zone, Germany, came to a halt data suggested, sending chills through the spine of investors globally. Investors sent gold prices to astronomical highs while equities experienced a broad sell-off. Thursday's German GDP growth numbers came at a wrong time, just one day ahead of key U.S. economic data.
All told, investors are stuck with high unemplyment rate, weak housing stats, record defitisits and cracking in the Euro zone. Stocks became extremely vulnerable to the slightest negative corpoate news under such circumstances. And even for those that reported blockbuster numbers, unpside was limited with a few exception.
Chinese stocks with the BEST return, August 15-19, 2011
China XD Plastics (NASDAQ:CXDC) reported record revenues and earnings, a significant improvement from last year's numbers. On top of it, Morgan Stanley invested $100 million into convertible bonds. This was good news for Chinese reverse merger stocks, lowering fears that all of such stocks were garbage. CXDC Jumps 38%. What's next?
Revenues grew 100% YoY for General Steel (NYSE:GSI), a Chinese rebar producer. This company targets second and third tier cities, leaving a lot of room for future growth. Investors liked what they saw and sent the stock 18% higher for the week. GSI jumps 14% in last hour. What's next?
Qihoo 360 Technology (NYSE:QIHU) surprised investors to the upside, the day Tudou (NASDAQ:TUDO) started trading on the NASDAQ. And while TUDO's debut was disappointing, the stock lost over 25% for the week, Qihoo 360 Technology (NYSE:QIHU) advanced 13% on the same time.
But the week wasn't a cake walk for most Chines estocks.
Chinese stocks with the WORST return, August 15-19, 2011
Investors had high hopes about China Housing & Land Development (NASDAQ:CHLN) before earnings release. The stock surged 70% a week before thanks to a robust earnings from another real estate play, Xinyuan Real Estate (NYSE:XIN). XIN earnings from a distance. But things turned ugly for CHLN for both top and bottom line fell, a sharp opposite of what investors expected. No wonder, the stock is off 36% for the week. CHLN doomed to plummet
Vancinfo Technologies (NYSE:VIT) followed suit, e.g. fell hard after disappointing investors. Earnings related weakness sank China Techfaith Wireless (NASDAQ:CNTF), Asiainfo-Linkage (NASDAQ:ASIA) as well.
The weakness of the Chinese solar sector is due to one disappointing report from China Sunergy (NASDAQ:CSUN) plus a lowered guidance from LDK Solar (NYSE:LDK). Revenues fell QoQ and China Sunergy (NASDAQ:CSUN) slipped to a loss, highlighting the vulnerability of some solar players. But Yingli Green Energy (NYSE:YGE) reported record PV shipments, record revenues and solid earnings. One darling, one dog - YGE vs CSUN. LDK's press release came at a wrong time, raising fears of a similar melt down to CSUN. Will LDK pull a CSUN?
Internet darling Baidu.com Inc. (NASDAQ:BIDU) is among the top losers for the week. The stock gave up 15% as investors sold off the sector. But fundamentals are right for China's search engine giant for both top and bottom line continued to grow plus the company issued a bullish outlook. BIDU blew past estimates, again
Changyou.com Inc. (NASDAQ:CYOU) fell just a little over BIDU along industry lines. The company reported solid earnings and revenue growth but was unable to fight the market. Its former parent, Sohu.com Inc. (NASDAQ:SOHU), experienced a heavy sell-off despite solid fundamentals. Sohu sinks despite triple play!
Sina Corp. (NASDAQ:SINA) was able to fight the market tough for investor liked what they saw. Most bad news, cost associated with Weibo.com's development, were already incorporated into its stock price. Revenues grew 20% for the liking of investors. Sina vs SOHU in 2011 Q2
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