November 11, 2013 (Chinavestor) The first week of November ended on a high note for US stocks thanks to a robust jobs report last Friday. Yet most US listed Chinese stocks failed to benefit from a strong market sentiment. Chinese consumer non-cyclical stocks did best by far while technology stocks suffered the most.
The problem with Chinese consumer durables is that the sector is made up by only four small cap, low trading quality stocks like SYUT, GRO, SEED and CMFO. Prudent investors don't really touch any of these stocks.
The second best performing group, financials, is worth paying attention to. The sector hosts China Life Insurance (NYSE:LFC), the largest Chinese life insurer, among other stocks. And while China Life (NYSE:LFC) gained a mere 0.6%, smaller stocks from the sector did very well.
Transportation stocks were mixed last week. Airliners fell but Seaspan Corp. (NYSE:SSW) rose 7.5%, lifting the rest of the sector.
The services sector hosts large cap China Mobile (NYSE:CHL) and other large telecom stocks, making it very important. Another large bubble on the chart is the energy sector. Needless to say, large cap Petrochina (NYSE:PTR), Sinopec (NYSE:SNP) and the likes are here.
Technology stocks are well represented in the US thanks to a large number of good listings. Among them are internet darlings like Baidu.com (NASDAQ:BIDU) and Sina Corp. (NASDAQ:SINA) just to name a few. When it comes to performance, last week was a painful one tough. Nine out of the ten largest component of the sector fell.