May 5, 2010 (Chinavestor) Value investors started to pick up undervalued shares of Chinese companies in Shanghai but Hong Kong trailed U.S. market lower on Wednesday. The Shanghai Composite Index (SHA:000001) ended the day in the black thanks to a last hour rally. The gauge of the Mainland rose +21.9 points or +0.8% to 2,857.15 at the end of the day. Resource stocks fell on soft commodity prices; Jiangxi Copper (SHA:600362), the largest Chinese producer of the metal, fell -3.3% while Aluminum Corp. of China (SHA:601600), the third largest aluminum maker of the world, tumbled -2.0%.
Trading in Hong Kong was remarkably different. The Hang Seng Index (INDEXHANGSENG:.HSI) dived -435.5 points or -2.1% to 20,327.54. Stocks that fell outnumbered those that advanced five to one out of the 42 member index components. Chinese airliners outperformed on lower oil; Air China (HKG:0753) advanced +2.0%, China Southern Airlines (HKG:1055) rose +1.2% and China Eastern Airlines (HKG:0670) shed only -0.5%. China Mobile (HKG:0941) fell only -1.2% compared to wide losses all over the board. CNOOC Ltd. (NYSE:CEO), China's offshore oil producer, tumbled -4.6% while Aluminum Corp. of China (HKG:2600) fell -3.2%.