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China Stock Weekly Roundup April 19 - 23

China Stock Weekly Roundup April 19 - 23

April 24, 2010 (Chinavestor) Chinese stocks went to a different direction then their U.S. counterparts. While the DJIA ended its eight week higher in row the Shanghai Composite Index (SHA:000001) fell the most this week in five months! Chinese regulators stepped on the breaks following a record 11.7% property price increase in March. Banks are banned from lending loans for third homes while regulations got tighter to get loans on the first place. New measures are in the drawing boards to tax third homes - in case the property market fails to cool down.

Investors started to shun real estate stocks but the sell-off became universal as the week dragged on. Investors fear that consumption might fall due to the curbing measures, hurting growth for consumer stocks.

The bright spot was earnings of a selected few. Chinese airliners reported a return to profitability - China Eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH) were on fire for the week advancing 16.7% and 9.8%, respectively. Stocks with over 10% increase for the week included ReneSola Ltd. (NYSE:SOL), China Technology Development Group (NASDAQ:CTDC), China TransInfo Technology Corp (NASDAQ:CTFO), China Automotive Systems (NASDAQ:CTFO) and Global Sources Ltd. (NASDAQ:GSOL).

The earnings calendar was full of NYSE listed China plays. Besides airliners, Aluminum Corp. of China (NYSE:ACH), Huaneng Power (NYSE:HNP), New Oriental Education (NYSE:EDU), China Life Insurance (NYSE:LFC), China Mobile (NYSE:CHL), Guangshen Rail (NYSE:GSH), Yanzhou Coal (NYSE:YZC) and Semiconductor Manufacturing Int'l. (NYSE:SMI) reported either operational statistics or quarterly earnings.

Aluminum Corp. of China (NYSE:ACH) swung back to profit but its shares traded water for the rest of the week. Huaneng Power (NYSE:HNP) electricity generation jumped 40% in the first quarter - yet the markets took little not of that. Huaneng Power 2010 Q1 surprises to the upside.

New Oriental Education (NYSE:EDU) reported better-than-expected quarterly report, sending its shares sharply higher on Tuesday. But outlook is not that bright as our analysis suggests. New Oriental enjoys a ride after quarterly earnings.

China Life Insurance (NYSE:LFC) reported March operational statistics - creating little excitement. While the outlook for the industry remains robust, latest numbers came a bit as a disappointment. China Life Insurance March 2010 growth slows.

China Mobile (NYSE:CHL), the largest mobile carrier in the world by subscriber numbers, reported in-line first quarter earnings. Investors were disappointed for the most part, seeing no explosive growth. China Mobile cruising along in 2010 Q1.

But CHL's numbers were not as bad given the softness of the whole sector. China Unicom (NYSE:CHU) reported March operational statistics that filed to impress investors.

Chinese airliners created buzz - blowing past expectations. Both airliners returned to profitability on strong passenger numbers and outlook is bright as disposable income in China is on the rise. The World Expo in Shanghai is expected to boost earnings for China Eastern Airlines (NYSE:CESA), the airliner with a hub in Shanghai controlling over 50% of the skies in the city. Update: China Southern Airlines remains explosive.

For more about the travel industry in China, read : Overview: China online travel industry.

Looking forward: earnings remain in focus. Internet advertisement giant (NASDAQ:SOHU) will report 2010 Q1, giving investors an idea what to expect from Sina Corp. (NASDAQ:SINA), (NASDAQ:NTES) and (NASDAQ:BIDU). For more upcoming events, read China stock earnings calendar April 26-30.


China Stock Earnings Calendar April 26-30

China Stock Earnings Calendar April 26-30

April 24, 2010 (Chinavestor) The following Chinese companies are scheduled to report financial results for the fourth quarter ended December 31, 2010 during the week or the first quarter ended 2010 March 31, starting April 26.


China stock market summary April 23, 2010

China stock market summary April 23, 2010

April 23, 2010 (Chinavestor) Shares of Chinese companies fell a record in Asia for the week - while the DJIA rose for the eight straight week in a row. Efforts by the Chinese government to cool-off the property market sent investors in the defense in Asia with real estate and construction material stocks suffering the most.

Large cap stocks fell on profit taking but smaller cap counterparts took merit from a strong U.S. market. Existing home sales jumped to a record from last month helping investors to believe that the recovery is on the way. Even Goldman's subpoena and Greece's ill couldn't derail U.S. indices.


China stocks on the move by noon, April 23, 2010

China stocks on the move by noon, April 23, 2010

April 23, 2010 (Chinavestor) Large cap China stocks suffered by noon but small caps shrugged off bad news and took merit from strong new home sales. Forgotten and/or oversold stocks took the lead in the morning on Friday. City Telecom (NASDAQ:CTEL) jumped +8.2% followed by China Integrated energy (NASDAQ:CBEH) by noon. Mindray Medical (NYSE:MR), a fundamentally solid yet oversold stock came off previous lows with a 6.1% advance in the morning.

Stocks with big reversal from yesterday include China Technology Development Group Corp. (NASDAQ:CTDC), Semiconductor Manufacturing (NYSE:SMI) and above mentioned CBEH.

China Eastern Airline (NYSE:CEA) fell -2.89% while bigger rival China Southern Airlines (NYSE:ZNH) advanced +0.80% the same time. Update: China Southern Airlines remains explosive.

Stocks with the biggest move today morning is listed in the following chart.

China stock market summary April 22, 2010

China stock market summary April 22, 2010

April 22, 2010 (Chinavestor) Chinese stocks made a strong comeback on the back of improving American market sentiment. Not only did the DJIA eke out a single digit gain for the second day in a row, but small and large cap Chinese ADRs as well.

Some small and large cap stocks remained explosive: Xinhua Sports & Entertainment Ltd (NASDAQ:XSEL) jumped 10.2% while China Technology Development Group Corp (NASDAQ:CTDC) ended the day 9.3% higher. (NASDAQ:BIDU) gained $10.04, the most among Chinese ADRs, and closed just below its all time high of $641.93 last Thursday. Superb earnings propelled Chinese airliners, ZNH and CEA, and Sinopec Shanghai Petrochemcial (NYSE:SHI) higher on Thursday.

Stocks deep in the red included 51job Inc. (NASDAQ:JOBS) and Gushan Environmental Energy (NYSE:GU). Semiconductor Manufacturing Int'l (NYSE:SMI) fell hard for the second day in a row and recovery for City Telecom (NASDAQ:CTEL) haven't arrived yet either. China Real Estate Information Corporation (NASDAQ:CRIC) and E-House Holdings (NYSE:EJ) fell just under 3% as China further tightened property market regulations earlier the day.

Details: Strong performance of  Xinhua Sports & Entertainment Ltd (NASDAQ:XSEL) is due to a bounce back following a disastrous tumble a week ago when the company announced a delay of 2009 Q4 results. The company is expected to report 2009 full-year and fourth quarter results on May 10, two weeks later than originally announced.

China Technology Development Group Corp (NASDAQ:CTDC) advanced 9.33% on Thursday on top of two straight days of gains. The stock was not overbought as of Thursday morning but may have become one by the end of the day. Come back to and check with the overbought indicator on Friday before the market opens.

Chinese airliners were on fire, again. Shares of China Eastern Airlines (NYSE:CEA) advanced $2.50 or 4.58% propelling the stock up 18% in the last four trading days. Larger domestic rival, China Southern Airlines (NYSE:ZNH), advanced even more for the day - again, strong earnings are behind the strong performance. China Southern Airlines remains explosive.

Sinopec Shanghai Petrochemical (NYSE:SHI) reported better-than-expected 2009 financial report earlier today, sending her shares up 6.1% in Hong Kong and 6.30% in New York. But don't expect the stock remain explosive due to her sensitivity to the price of oil. Sinopec Shanghai Petchem swings back to profit in 2009. (NASDAQ:BIDU) closed above $640 for the second time in history after a $10.07 advance for the day. Studies show that market share of the company increased after Google severed tis with China. Some argue that BIDU may reach $700 by the end of June.

51job Inc. (NASDAQ:JOBS) dropped the most in dollar terms and in percentage points as well on Thursday. There is not any stock specific news behind the weak market performance but increasing volume suggests the worst isn't over just yet.

Bio-diesel producer Gushan Environmental Energy Limited (NYSE:GU) fell -7.2% on Thursday following news that the company is going to shut down its Shanghai based unit due to the Expo 2010. Tightened regulations limit production and transportation of flammable chemicals until the exhibit is over in November.

City Telecom (NASDAQ:CTEL) had a spectacular 2009 and 2010 year so far until March 2010. But the stock has had to take a breather - current weakness is more a technical correction than fundamentally drive.

Chinese regulators work hard to coll-off the property market in China, hurting bottom lines of China Real Estate Information Corporation (NASDAQ:CRIC) and E-House Holdings (NYSE:EJ) among other related companies. Don't expect much improvement in the upcoming months  - though some argue that it is time to buy real estate stocks based on valuation.

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