Top China ADR Portal

China ADR stock research


Warning: strtotime(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 56

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 198

Money flows reveal HNP in trouble, CEA, ZNH not

E-mail Print PDF

money8 June 26, 2014 (Chinavestor) Money flows reveal two different stories for Chinese utilities and transportation stocks. This latter offers entry position given low valuation and stable money flows, while utilities advanced too much without fundamental support. This is good news for China Eastern Airlines (NYSE:CEA) and China Southern Airlines (NYSE:ZNH), among others, but not so good news for Huaneng Power International (NYSE:HNP).

The first chart displays how much the Chinese transportation sector index fell in the last nine months. The index is down as much as 15% yet money flows remained constant with a slight improvement. The disparity between the two suggests there is a real chance for airliners, shipping lanes and railway stocks to pop up.

China's aviation industry is booming yet stock prices are under water. According to the latest statistics, China's airlines carried 350 million passengers in 2013, an increase of 11% YoY.Chinese airliners are on a shopping binge to fulfill demand. China Eastern Airlines (NYSE:CEA), the second largest by fleet size, just announced a purchase of 80 Boeing (NYSE:BA) 737 jets for $8 billion. China's largest airline, China Southern Air (NYSE:ZNH), placed a similar size order from Airbus a month before.

Based on money flow analysis, there is significant upside potential for CEA, ZNH, according to the following chart.

MF_transport_june2014

 

To demonstrate how good transportation stocks look compared to other sectors, one has to take a look at Chinese utilities. Huaneng Power International (NYSE:HNP), by far the most dominant Chinese utility listed in the US, advanced 35% after the March dip yet money flows were virtually flat. This suggests HNP is overvalued and is vulnerable to downside risk. See yawning gap between money flows and index.

 

MF_Util_june2014



If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

!!! CHINAVESTOR.COM is for SALE !!!

BUY this domain with all its credentials. Chinavestor.com has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked. Contact Seller Here

sale1
G_news
Check out The Benefits of Getting into Google News!