February 6, 2014 (Chinavestor) While American indexes were looking for direction Chinese stocks suffered another heavy blow on Wednesday. The China ADR Index, compiled by Chinvestor, fell 10.6 points or 1.5%, far more than any US benchmark.
The decline was attributed to heavy losses of some index heavy weight stocks like Baidu Inc. (NASDAQ:BIDU) or energy majors CNOOC Ltd. (NYSE:CEO) and Sinopec (NYSE:SNP). Smaller cap but great trading stock SouFun Holdings (NYSE:SFUN) fell over $7 dollars and is now trading in the lower $70 range. This is a far cry from a stock that was as high as $94 less than two weeks ago! And just how much SouFun's drop is unusual, take a look at the chart below. SouFun Holding (NYSE:SFUN) fell twice as much as Baidu Inc. (NYSE:BIDU), displaying real weakness going forward.
Volatility index for Baidu Inc. (NASDAQ:BIDU) has always been high but now that market volatility is increasing, investors need a real strong stomach to own BIDU. Chinese oil giants follow world markets and such decline of CNOOC Ltd. (NYSE:CEO) and Sinopec (NYSE:SNP) comes as no surprise.
Sohu.com Inc. (NYSE:SOHU), Sina Corp. (NASDAQ:SINA) and Ctrip.com Int. (NASDAQ:CTRP) followed industry leader Baidu Inc. (NASDAQ:BIDU) lower on Wednesday. These stocks have experienced a bumpy ride lately as well.
China Life Insurance (NYSE:LFC), China's largest life insurer, declined more than the market itself as outlook for China's economy worsened.
It is difficult to find Chinese stocks that shined on Wednesday. Take a look at the following chart to see why.