Chinese stocks continue to lag as investors remain pensive regarding China's worrisome property market and further tightening measures Beijing may implement to prevent a potential real estate bubble from forming.
Concerns regarding China's real estate bubble can be spotted in select Chinese ADRs. In particular, Xinyuan Real Estate (NYSE:XIN) tumbled almost 6% on the week despite a rally of nearly 2% on Friday. More editorial in this area: Food for Thought - China's Alleged Property Bubble
Another sector to perhaps avoid, or at least approach with caution, is the online gaming sector. Perfect World (Nasdaq:PWRD) lost more than 6% on the week and Shanda Interactive (Nasdaq:SNDA) continued to be a popular target for the bears, tumbling nearly 7%. Earnings From Online Gaming Firms A Mixed Bag
Dairy products maker Synutra International (Nasdaq:SYUT) road a wild coaster this week, soaring more than 5% on Friday, but that wasn't enough to prevent a loss of almost 7% on the week. As we mentioned in Friday's wrap, China Fire & Security Group (Nasdaq:CSFG) was a suspicious decliner, plunging nearly 8% on the day and that led to a loss of over 6% for the week.
The pharmaceuticals space was a tricky place to play this week with WuXi PharmaTech falling 5.4% as investors questioned that company's looming sale to Charles River Laboratories (NYSE:CRL). China Nepstar Chain Drugstore (NYSE:NPD), China's largest chain drugstore operator, fell 3% for the week. Rounding out the week's biggest losers, The9 Ltd. (Nasdaq:NCTY), A-Power Energy (Nasdaq:APWR) and GigaMedia (Nasdaq:GIGM) all lost more than 4%.
Internet and tech names showed some signs of strength with online travel reservations firm Ctrip.com (Nasdaq:CTRP) gaining 13%, but that bullish performance was outdone by CDC Corp. (Nasdaq:CHINA) and AsiaInfo Holdings (Nasdaq:ASIA) both gaining more than 19%. All were left in the dust by VisionChina Media (Nasdaq:VISN), which surged almost 24%, good for the biggest gain among Chinese ADRs.
Gushan Environmental (NYSE:GU), the biodiesel products maker, popped almost 13%, but the real winner in the diesel-related sector was China Yuchai International (NYSE: CYD), which rallied almost 16%, despite a light volume day on Friday. Another name related to powering automobiles, China Automotive Systems (Nasdaq:CAAS), jumped more than 14%.
Despite the dark cloud hanging over China's real estate sector, construction services provider China Architectural Engineering (Nasdaq:CAEI) surged 17.5%. RINO International (Nasdaq:RINO) enjoyed a wild, but excellent week, gaining more than 16%. 51Job (Nasdaq:JOBS) and Gushan Environmental Energy (NYSE:GU) round out the winners with gains of 14% and 13%, respectively.
The earnings calendar for next week is extremely light, with no Chinese ADR on the menu. China Ground Source Energy Limited (HKG:8128) is the only China company to report FY 2010 financials on Friday, June 25, 2010.
The Asian economic calendar is light as well. Investors will watch Japanese CPI closely and reaction of Bank of Japan to it. On the corporate front, Toyota and Panasonic will hold annual corporate meetings.