June 3, 2010 (Chinavestor) The DJIA made a V-shaped recovery on Thursday lifting smaller cap Chinese stocks the most. The Claymore/AlphaShares China Small Cap ETF (NYSE:HAO), tracking small cap China shares advanced +0.1%, in-line with the DJIA, while the iShares FTSE/Xinhua China 25 Index (NYSE:FXI) fell -0.6%.
Financials weighted down the large cap proxy but industry leader Huaneng Power (NYSE:HNP), Home Inns & Hotels Management (NASDAQ:HMIN), Ctrip.com (NASDAQ:CTRP) and China Life Insurance (NYSE:LFC) all retreated. Yanzhou Coal (NYSE:YZC), the third largest Chinese coal miner, felt a pinch, too. But selected NASDAQ listed China blue chips advanced; Sohu.com (NASDAQ:SOHU), NetEase.com (NASDAQ:NTES), Baidu.com (NASDAQ:BIDU) rose just as did oil companies, Sinopec (NYSE:SNP) and Petrochina (NYSE:PTR).
Solarfun Power Holdings (NASDAQ:SOLF) rose the most in percentage points and China Finance Online (NASDAQ:JRJC) advanced 6% before earnings release after the close. But WSP Holdings (NYSE:WH) fell hard, just as was predicted in the overbought/oversold report this morning.
The DJIA opened higher, fell to session lows but recovered most of the losses by the close as investors digested a weaker euro and a slew of economic news. Chinese shares rose in Hong Kong earlier the day but profit taking took a toll on investors' mood in Shanghai.
Looking at Chinese ETFs, large cap proxy iShares FTSE/Xinhua 25 Index (NYSE:FXI) fell -0.6% but smaller stocks outperformed. It was an opposite of what was happening in Asia earlier the day, where most large cap stocks advanced while smaller ones lagged.
Solarfun Power Holdings (NASDAQ:SOLF) advanced +7.6% while Train Solar (NYSE:TSL) rose 2.82%. Suntech Power (NYSE:STP) reported earnings before the bell, reassuring investors that the solar sector is fundamentally healthy.
WSP Holdings (NYSE:WH) fell 9%, the most among Chinese ADRs, as investors sold-off the stock after a technical rebounce on Wednesday.
Internet stocks surged; Sohu.com (NASDAQ:SOHU) rose 4.77% followed by NetEase.com Inc. (NASDAQ:NTES) and Baidu.com (NASDAQ:BIDU). Internet spending remained strong as investors gauge Shanda's earnings from Wednesday.
Oil stocks advanced on the back of firm crude prices; Petrochina (NYSE:PTR), the largest oil producer in China, rose .56% while Sinopec (NYSE:SNP), Asia's largest refiner by volume, advanced $.70.
Ctrip.com (NASDAQ:CTRP) succumbed to profit taking after a 3% surge the day before while China Life Insurance (NYSE:LFC) and Yanzhou Coal (NYSE:YZC) continued to trade sideways for the third day in a row. Home Inns & Hotels Management (NASDAQ:HMIN) became overbought by this morning, as we posited it out in the overbought/oversold report, suggesting today's correction was timely and well taken. Expect the company to show strength in the upcoming days.