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

Telecom Sector in China Under Pressure

E-mail Print PDF

decline3(Aug. 27, 2009 - Chinavestor) China Mobile (NYSE:CHL) and China Telecom (NYSE:CHA) have reported 2009 first six months interim results already, putting additional pressure on the sector. Shares of Chinese carriers have been under-performing in 2009 so far following the industry shake up at the end of 2008. The handout of the 3G licences and network protocols created havoc in the sector with uncertain growth path for China Mobile (NYSE:CHL), China Telecom (NYSE:CHA) and China Unicom (NYSE:CHU).

Sluggish growth pushed shares of China Mobile (NYSE:CHL) lower following first half interim results. China Telecom (NYSE:CHA) just reported net income drop of 27.5% in the first six months of 2009, a bad omen before the trading day on Thursday.

 

As the following oversold China stock list testifies, all three Chinese telecommunication companies are on the most oversold Chinese stock list. China Mobile (NYSE:CHL) and China Unicom (NYSE:CHU) are the ones with the most significant loss of momentum. Weak China Telecom (NYSE:CHA) numbers will add more pressure on the rest of the sector.

Most oversold China stock list

OS-827

Looking at the other end of the China stock universe, the most overbought spectrum, there is not a single China stock that is technically overbought at the moment. This in turn reflects mediocre market interest and sentiment towards Chinese stocks. China stocks with some momentum include UTStarcom (NASDAQ:UTSI), WuXi Pharma (WX) and China Life Insurance (NYSE:LFC).

Most overbought China stock list

OB-827

expl-obos

Overbought A technical condition that occurs when prices are considered too high and susceptible to a decline. Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp advance from $15 to $30 in 2 weeks might lead a technician to believe that a security is overbought. Or, a security is sometimes considered overbought when the stock is trading out of its trading envelope and is approaching the theoretical high. It is important to keep in mind that overbought is not necessarily the same as being bearish. It merely infers that the stock has risen too far too fast and might be due for a pullback.

Oversold A technical condition that occurs when prices are considered too low and ripe for a rally. Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp decline from $30 to $15 in 2 weeks might lead a technician to believe that a security is oversold. Or, a security is sometimes considered oversold when the stock is trading below its trading envelope and is approaching theoretical lows. It is important to keep in mind that oversold is not necessarily the same as being bullish. It merely infers that the security has fallen too far too fast and may be due for a reaction rally.



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!

Free weekly newsletter

Get hot China stock news every Monday