Chinese stocks fell in Shanghai and in Hong Kong simultaneously, setting a somber tone for Chinese ADRs ahead the bell.
The Shanghai Composite Index <.SSEC> fell 5.0%, the most in 2009 on rumors that the government will curb money supply flooding the Shanghai Stock Exchange. The Hang Seng Index <.HSI> fell 489.04 points or 2.37% on concerns that the rally went too far too fast.
As the following indicator testifies eighteen Chinese stocks listed in America, called China ADR list, are overbought and the number is increasing. This concerns many investors wondering how long the rally can last. With index futures pointing to lower open, expect China stocks to under perform on Wednesday.