August 7, 2010 (Chinavestor) – Bolstered by strong earnings reports and easing concerns about Chinese bank stress tests, emerging markets stocks headed higher for a third straight week as the Hang Seng Index (INDEXHANGSENG:.HSI) and Shanghai Composite Index (SHA:000001) built on July's gains. U.S. stocks were lower in three of the week's five trading days, but overall the Dow Jones Industrial Average and S&P 500 were higher on the week, despite Friday's disappointing labor report.
Selected Chinese stocks of the week: Trina Solar (NYSE:TSL), Shanda Games (NASDAQ:SNDA), China Sunergy (NASDAQ:CSUN) and Sina Corp. (NASDAQ:SINA).
Taking a look at Chinese large-caps, after enduring a sound thrashing last week, the solar sector was back in the green this week, led by LDK Solar (NYSE:LDK), which popped by almost 14%. The company delivers its next earnings report on Tuesday. Trina Solar (NYSE: TSL) and JA Solar (Nasdaq:JASO) took part in the solar rally as each gained more than 9% on the week. Suntech Power (NYSE:STP) was the laggard of the group, shedding more than 4%.
It was another week of inconsistencies for online gaming companies. Perfect World (Nasdaq:PWRD) surged more than 10%, Shanda Games (Nasdaq:GAME) gained almost 10% and Shanda Interactive (Nasdaq:SNDA) added almost 7%, but Giant Interactive (NYSE:GA) could only muster a gain of less than 1%.
Technology names were strong with VanceInfo Technologies (NYSE:VIT) adding more than 8%. Baidu (Nasdaq:BIDU), China's largest provider of Web search services, gained over 6%. 51job (Nasdaq:JOBS) rounds out the large-cap winners with a weekly gain of 5.73%.
By comparison, the losers were fairly tame this week. E-House (NYSE:EJ) shed almost 3.7% on news of China's planned stress tests on banks. Commodities names were just average as Aluminum Corp. of China (NYSEE:ACH) dropped almost 2.7%. China Telecom (NYSE:CHA), China Life Insurance (NYSE:LFC) and Guangshen Railway (NYSE:GSH) all booked small losses on the week.
Small-caps worked through a volatile week, as winners outpaced losers by a small margin on a percentage basis. Agria (NYSE:GRO) surged almost 19% on no news. The Agria (NYSE:GRO) helped boost Origin Agritech (Nasdaq:SEED) by 9.6%. Nam Tai Electronics (NYSE:NTE) put in an impressive run of 12%. Some decent action in oil futures helped WSP Holdings (NYSE:WH) to a gain of almost 11%.
China Medical Technologies (Nasdaq:CMED) also performed admirably, adding nearly 11% as well. Investors cheered earnings news from China Integrated Energy (Nasdaq:CBEH), which rallied by almost 10% on the week. China-Biotics (Nasdaq:CHBT) popped by almost 9%. China Housing & Land Development (Nasdaq:CHLN) shrugged off the stress test news to pack on 8.77% on the week. General Steel (NYSE:GSH) and Rino International (Nasdaq:RINO) both gained more than 8%.
Among small-cap losers, China Architectural Engineering (Nasdaq:CAEI) was hammered to the tune of 13.46% on no news. China Infrastructure Investigation (Nasdaq:CIIC) and Global Sources (Nasdaq:GSOL) each lost around 12.6%. Xinhua Sports & Entertainment (Nasdaq:XSEL) continued to be home to some bearish trade, shedding 8% on the week.
Qia Xing Mobile (NYSE:QXM) was rocked by almost 8% on no news while VisionChina Media (Nasdaq:VISN) extended its bearish ways, losing nearly 7%. Jinpan International (NYSE:JST), China Natural Resources (NYSE:CHNR) and BMP Sunstone (Nasdaq:BJGP) all declined by more than 6%. China Information Technology (Nasdaq:CPBY) rounds out the losers, with a drop of almost 6%.
