Jan. 27, 2010 (Chinavestor) With markets on a backtrack, most of the action has been taking place on the oversold end of the Chinese stock universe. UTI Starcom (NASDAQ:UTSI) and AirMedia Group (NASDAQ:AMCN) have shown technical strength besides SPRD. Given that Chinese and American equity markets became oversold, chances are that a big bounce back in on the way. If that's the case stocks of interest include those that did well on Tuesday; including Baidu.com (NASDAQ:BIDU), Trina Solar (NYSE:TSL), Suntech Power (NYSE:STP), and E-House Holdings (NYSE:EJ).
The oversold end of the Chinese stock universe is a full house - as the following chart testifies. But there are some nuances between certain stocks that investors have to pay attention to. It looks that those Chinese stocks are going to recover first that have been punished the most. Looking at the list below the following stocks have the highest chance to bounce back: China Fire & security Group (NASDAQ:CFSG), Wonder Auto Technology (NASDAQ:WATG), China Information Security (NASDAQ:CPBY), China Petroleum & Chemical Corp. (NYSE:SNP), and Sinopec Shanghai Petrochemical (NYSE:SHI).
Solar stocks have started to come off current lows - industry leaders leading the way. Expect solar stocks to take part in a wider recovery.
Most oversold Chinese stocks
Spreadtrum Communication (NASDAQ:SPRD) is leading the overbought China stock list and is expected to do well on Wednesday. The stock have shown strong resilience in the last few days and can return to go higher if market conditions improve. UTI Startcom (NASDAQ:UTSI) has been on fire since last Friday but effect of the latest news to outsource manufacturing operation is uncertain. AirMedia Group (NASDAQ:AMCN) is another stock with upside potential for the upcoming days.
Most overbought Chinese stocks