May 4, 2010 (Chinavestor) Shares of Chinese companies listed in American soil tumbled sharply on Tuesday as U.S. markets got spooked by Greece's ills, slowing Chinese manufacturing data, a strong dollar and falling commodity and energy prices. Chinese indices in Asia fell earlier the day as the government increased reserve ratios for banks in an effort to cool-off the property market.
The proxy for large cap Chinese stocks, iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI), fell the most among Chinese ETFs followed by the Claymore/AlphaShares China Small Cap ETF (NYSE:HAO). Stocks with the steepest decline include China Yunchai International Limited (NYSE:CYD), E-House Holdings (NYSE:EJ), Harbin Electric (NASDAQ:HRBN) and JA Solar (NASDAQ:JASO).
Chinese indices fell in Asia on Tuesday, the Shanghai Composite fell to a seven months low on Tuesday. Bank reserve ratios were lifted by 50 basis points, depleting the lending pool by $44 billion, according to estimates. China's purchasing managers' index fell to a six months low of 55.4 in April from 57 a month before. Any reading above 50 means expansion. And while the manufacturing sector is less overheated, a good sign, inflation is on the rise in China and in greater Asia. Besides Chinese data, Greece's debt concerns sent world markets lower on Tuesday. But U.S. economic indicators have been strong - pending homes sales were up 5.3% from a month earlier and March factory orders were up +1.3%, another surprise to the upside. Strong earnings from Pfizer (NYSE:PFE) and Merck Co. (NYSE:MRK) were unable to lift U.S. investors from the bearish mood.
The broad sell-off sent Chinese ADRs tumbling in he morning. Real estate related stocks continue to suffer. E-House Holdings (NYSE:EJ) fell -8.6% while China Infrastructure Investment Corp. (NASDAQ:CIIC) lost -5.3% by 11:00 A.M.
China Yunchai International Limited (NYSE:CYD) fell -8.2% in the morning - giving up most of the gains from the last five trading sessions. Power producer Harbin Electric (NASDAQ:HRBN) fell -7.9%, four times as much as larger Huaneng Power (NYSE:HNP). Huaneng's H-shares (HKG:0902) advanced +0.7% earlier the day in Hong Kong.
Chinese solar stocks got hammered on Tuesday. Strong dollar sent oil prices lower and increased foreign currency related losses. Solar stocks and the dollar. JA Solar Holdings (NASDAQ:JASO) fell -7.1%, the most among solar plays, but the rest of the sector is in the red as well.
UTStarcom (NASDAQ:UTSI) fell -6.44% ahead of earnings after the close today. China stock earnings calendar May 3-7, 2010.
There is only a limited number of stocks on the bright side. Fushi Copperweld (NASDAQ:FSIN) rose +3.3% on in-line earnings and sweetened 2010 second quarter revenue outlook. Fushi Copper gaps up on 2010 Q2 outlook.
AsiaInfo Holdings (NASDAQ:ASIA) gave up most of the pre-market and early morning gains by 11:00. The stock got a boost from 2010 Q1 numbers. AsiaInfo proves pessimists wrong.
Shares of Yanzhou Coal (NYSE:YZC) fell for the second day in a row as Australia is mulling the toughest tax regime for resource companies like YZC. Yanzhou bought Felix Resources, a large Chinese coal miner, in 2009 making up 25% of all coal production of the company. Yanzhou Coal 2010 Q1 profit doubles.
Besides Yanzhou Coal (NYSE:YZC), energy stocks, airliners, and telecoms contributed the most of the tumble of the iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI).