April 14, 2010 (Chinavestor) Chinese stock investors remain upbeat thanks to strong U.S. earnings and FED Chairman Bernanke's remarks about economic recovery. The Chinese ADR rally is universal, large and small cap stocks have risen just about 0.6% by noon on Wednesday.
Stocks extending their strong rally from yesterday include Xinhua Sports & Entertainment (NAADAQ:XSEL), eLong Inc. (NASDAQ:LONG) and a mid cap Chinese medical equipment maker, Mindray Medical (NYSE:MR). China Eastern Airlines (NYSE:CEA) fell after a similar dive in Hong Kong earlier today while City Telecom (NASDAQ:CTEL) have fallen for five days in a row.
Small cap China plays jumped the most measured in percentage change. Spreadtrum Communications (NASDAQ:SPRD) took the lead with a 8.65% jump today. The surge of China Yuchai International Limited (NYSE:CYD) is accompanied by heavy volume, a very positive sign. But it's been Baidu.com (NASDAQ:BIDU) that rose the most in dollar terms thanks to a $11.54 advance by noon on Wednesday. Stocks with over a dollar price increase include CNOOC Ltd. (NYSE:CEO) and Ctrip.com (NASDAQ:CTRP).
Details: Spreadtrum Communication (NASDAQ:SPRD) was the most oversold China stock at the end of March - as the oversold chart testifies in the "The number of overbought China stocks is on the rise." Current resurgence part of a broader technical correction, the rally may extend well over to Thursday.
China Yuchai International Limited (NYSE:CYD) is trading +6.7% higher by noon. The overbought screen spotted the sudden advance of the stock back in March 29 - however today's surge was not foretold by technical indicators. Watch out for the overbought monitor tomorrow morning to assess the stock from an overbought point of view.
Xinhua Sports & Entertainment Ltd (NASDAQ:XSEL) has been accelerating today - but is getting overbought. The stock has been on the rise for three days in a row. It might be wise taking profits now...
eLong Inc. (NASDAQ:LONG) has been very sporadic in the past, so a four day winning streak is highly unusual from this low volume China play.
Mindray Medical (NYSE:MR) is a fundamentally solid company that showed up on the oversold screen four days ago. We argued before the opening bell on April 9, Friday that "the unusual drop in the price of Mindray Medical International (NYSE:MR) is spotted by the monitor. Chinese exporters are expected to be hurt should the Yuan appreciate, a likely scenario that might dent into sales of this Chinese medical equipment maker. But the drop in share price looks excessive as the stock is approaching theoretical lows." This proved to be a prudent call, shares of the company have risen over 7%. China stocks to watch on Friday.
China Eastern Airlines (NYSE:CEA) is down along with the rest of the sector. Chinese airliners have risen earlier the month following allegations that the Yuan revaluation is approaching. But higher oil price coupled with strong Chinese remarks that the Yuan peg is to stay for now send the sector tumbling.
Strong oil price lifted shares of CNOOC Ltd. (NYSE:CEO) higher by noon today. This company is the only pure oil producer among China's oil triumvirate. Petrochina (NYSE:PTR) is the largest oil producer with a significant refining capacity of its own while Sinopec (NYSE:SNP), is Asia's largest refiner with a significant oil production. When price of oil is on the rise top and bottom line of CNOOC improves!
Baidu.com (NASDAQ:BIDU) has just cleared the $600 mark earlier the month yet is approaching new highs again. The stock is not overbought despite a 220% rally in the last 52 weeks.
Ctrip.com (NASDAQ:CTRP) is a very solid, relatively large cap NASDAQ listed China stock. The company reported much better than investors' first reaction would suggest - so we wrote Ctrip.com 2009 Q4 disappoints. How bad is it? where we argued that there is no reason to shun shares of this company. Hope you listened to us...