January 12, 2015 (Chinavestor) These are the perils of investing in US listed Chinese stocks. Extreme stock price volatility for short and long term. For the short run, we have one example right now. Bitauto Holding Ltd. (NYSE:BITA), a stock that flirted with $95 last Friday and is down to $75 today. Friday was a big uptick while Monday is a steep decline. It just doesn't make sense! BITA's performance is not just one extreme. How about another auto stock from China, Autohome Inc. (NYSE:ATHM). This Chinese consumer cyclical stock jumped just as big on Friday as BITA and stayed high all day. But the same thing happened to it today as to BITA. Giving up all the gains from Friday and more.
Can average investors find Chinese stocks for rational investors? Sure, it's possible. Take a look at Huaneng Power (NYSE:HNP), China's largest independent power generator.