April 21, 2010 (Chinavestor) China stocks advanced in Shanghai while ended the day in the red in Hong Kong on Wednesday. The advance was universal in Shanghai, each and every component of the SSE-50, the index tracking the performance of the fifty largest listed companies, advanced or were unchanged. Insurers outperformed after comments from Du WIngfu, Chairman of the China Insurance Regulatory Commission, who said that combined profit of the three largest insurers are expected to rise over 110% from last year. China Pacific Insurance (SHA:601601) advanced +3.5% followed by Ping An Insurance (SHA:601318). SAIC Auto (SHA:600104), the largest Chinese auto maker rose +2.8% breaking a four day losing streak.
Trading in Hong Kong was different, the Hang Seng Index fell apart in the afternoon session on profit taking. The index advanced over 2% just a day before and with uncertainties looming around China's efforts to cool off the economy and the property sector in particular, investors took profits off the table. Chinese airliners and power producers outperformed following earnings releases. China Eastern Airlines (HKG:0670) (NYSE:CEA) rose 11.5% while China Southern Airlines (HKG:1055) (NYSE:ZNH) advanced +3.4%. Both airliners have reported better-than-expected traffic and financial data. Datang Power (HKG:0991) rose +2.1%, Huaneng Power (HKG:0902) (NYSE:HNP) advanced +2.0% and Huadian Power (HKG:1071) advanced +1.5% following strong earnings from the first two companies. Huaneng Power 2010 Q1 surprises to the upside.
But shares of China Mobile (HKG:0941) (NYSE:CHL) fell -1.5% as the company reported sluggish 2010 first quarter revenue and earnings growth. China Mobile cruising along in 2010 Q1.
China Life Insurance (HKG:2628) fell -0.7% just as Yanzhou Coal (HKG:1171) (NYSE:YZC) did. Energy stocks came under pressure from softening oil prices hurting coal and oil companies alike.