April 15, 2010 (Chinavestor) China stocks slipped despite the DJIA extending its rally. Large cap stocks suffered the most evidenced by the weakness of the iShares FTSE/Xinhua 25 Index (NYSE:FXI). While Google's earnings grew over 30% the stock got beat up - expect some softness for Baidu.com (NASDAQ:BIDU) ahead. Selected oversold stocks turned around - A-Power Energy Generating Systems (NASDAQ:APWR) and Jinpan International (NASDAQ:JST) while some continued to fall sharply - like Melco Crown Entertainment (NASDAQ:MPEL), City Telecom (NASDAQ:CTEL) or Perfect World (NASDAQ:PWRD).
The oversold monitor suggested that some stocks are ready to make a move. We wrote this morning that "Stocks that have bottomed out and are ready for a turn around include China Infrastructure Investment Corp. (NASDAQ:CIIC), Jinpan International (NASDAQ:JST), China Grentech (NASDAQ:GRRF) and A-Power Energy Generation Systems (NASDAQ:APRW)." China stocks to watch on Thursday, April 15.
Given that A-Power Energy Generating Systems (NASDAQ:APWR) and Jinpan International (NASDAQ:JST) made it to the best five stocks of the day, measured in percentage change, it was an excellent call.
Stocks with the biggest move include Baidu.com (NASDAQ:BIDU) a stock that advanced +$11.30 or 1.77% and has been approaching $650. But there has been a correlation between Google (NASDAQ:GOOG) and Baiduc.om (NASDAQ:BIDU) in the past, so today's big Google loss will impact BIDU tomorrow.
CNOOC ltd. (NYSE:CEO), a pure oil producer, advanced $1.15 as the global economic recovery keeps energy prices high. Yanzhou Coal (NYSE:YZC), the third largest coal miner in China, advanced +2.02% as coal prices correlate with oil very closely. China Shenhua Energy (HKG:1088) just announced first quarter and March operational numbers- with not much of change from alst year. The company is running at full capacity ... China's largest coal producer reports 2010 March and Q1 operational data.
Investors bet that high energy prices are here to stay- so solar stock continued to show resilience. Industry leaders all did well on Thursday: LDK Solar (NYSE:LDK), Suntech Power (NYSE:STP) and Trina Solar (NYSE:TSL) gained 3%-6% , each.
Sinopec (NYSE:SNP), China's largest refiner, fell -$1.14 as high oil price dents into margins. The company reported excellent 2009 numbers but is expected to be underdog when price of oil creeps higher. Sinopec 2009 net jumps on lower oil price.
E-House Holdings (NYSE:EJ) is hurt on possible asset price bubbles - or fears. Strong first quarter GDP growth of 11.7% in China raised fears that the government will have to raise rates to keep the economy from overheating. Higher rates will discourage investment into the real estate sector, a phenomena that keeps E-House Holdings (NYSE:EJ) under water.