May 6, 2010 (Chinavestor) Chinese stocks fell hard on Thursday trailing Asian indices lower. Large cap stocks hold on better than smaller counterparts; the Claymore/AlphaShares Small Cap China ETF (NYSE:HAO) lost three times as much as the large cap proxy, FXI.
Energy, solar stocks weight down indices on stronger dollar and falling oil. Solar stocks dominate the worst performing China ADR universe by noon on Thursday. Suntech Power (NYSE:STP), Solarfun Power (NYSE:SOLF), Canadian Solar (NASDAQ:CSIQ), Yaingli Green Energy (NYSE:YGE) and Trina Solar (NYSE:TSL) make up the worst stocks measured in percentage change on the following screen.
Chinese solar stocks suffer when the price of oil declines, making solar less affordable. With oil below $80/barrel and bleak economic outlook in China, solar stocks took a heavy blow this morning. When the dollar gets stronger, as is the case today, Chinese solar makers make less from Europe, their major export market. Today solar stocks suffer a double whammy: falling oil prices and a strong dollar. For more about this phenomena, read: Solar stocks and the dollar.
On a stock level, Trina Solar (NYSE:TSL) lost -10.73% by noon followed by Yingli Green Energy (NYSE:YGE). Yingli was oversold this morning, suggesting this stock will pop when the markets turn around! Canadian Solar (NASDAQ:CSIQ) is almost as oversold as YGE. Solarfun Power (NYSE:SOLF) and industry leader Suntech Power (NYSE:STP) look attractive at current prices as well.
Stocks on the upside include China Automotive Systems (NASDAQ:CAAS). The company reported a record first quarter revenue and earnings, thanks to an improvement in gross margin. CAAS looks attractive at current stock price of $20.4. CAAS 2010 Q1 beats expectations, forecasts flat.
Silvercorp Metals (NYSE:SVM) rose 3.2% on Thursday by noon, a significant improvement after the big fall just the day before. Chinavestor trend analysts picked up this stock last week - the stocks has additional upside in our opinion.
Hutchison Telecom (NYSE:HTX) was oversold this morning, and the day before: Oversold China plays offer quick profit.
Chinavestor is going to dedicate resources to examine the Chinese real estate sector real close. One company on the list is China Housing & Land Development. See our independent review of the company with some industry outlook. Company overview: China Housing & Land Development (CHWM). Another China real estate stock, China Infrastructure Investment (NASDAQ:CIIC) is up 2.3% by noon on Thursday.