August 13, 2014 (Chinavestor) China's second largest airline by fleet size, is up 6.16% this week and half of that advance is happening today. China Eastern Airlines (NYSE:CEA) is trading at $17.23, a 6 months high for the stock. Good news is that the stock enjoys very strong money flows at her home market.
The first chart displays money flows for the hole transportation sector. The index for the sector is up for the last quarter but is not supported by strong money flows. This chart has two weaknesses. First, it encompasses all Us listed transportation stocks, from railways to shipping lanes and airliners. Stocks like China Southern Airlines (NYSE:ZNH), Guangshen Ril (NYSE:GSH) and so on. Second, true home market for Chinese airliners is in Asia. This is where stock prices are ultimately determined and CEA's NYSE listed price reflects what has happened in Hong Kong and Shanghai.
The second chart is a true money flow chart for China Eastern Airlines (HKG:0670) in Hong Kong. This is where serious trading volume is recorded. The index for China Eastern Airlines (HKG:0670) is up and so is money flows. One of the latest big bump up was on August 4, 2041 when over 28 million H-shares traded hands. This is almost ten times more than average volume.
All told, money is flowing into China Eastern Airlines (HKG:0670) in Asia. This is good news for those who expect more upside from the NYSE listed ADR, CEA.