Stocks advanced in Hong Kong and Shanghai simultaneously on Thursday buoyed by a strong Wall Street. The Shanghai Composite contracted over 10% lately as investors locked in profits but the bulls returned on Thursday driving the index up 27.84 points to 3,140.56. Trading in Hong Kong was euphoric, number of stocks that rose outnumbered those that fell 38:6 out of the 4 member Hang Seng index. Transportation stocks, airliners, rail and express way stocks led the rally. resource and metal stocks did very well, too. Aluminum Corp. of China (HKG:2600)(NYSE:ACH) advanced 2.4% followed by Petrochina (HKG:0857)(NYSE:PTR) and China Life Insurance (2628.HK)(NYSE:LFC). But Chinese telecom players lagged behind.
Index futures point to a higher open for American stocks on jobs and retail data. Chinese stocks listed on American stocks exchanges, or ADRs, have pulled back lately and thus look good from a technical point of view. Expect airliners, resource players do well on Thursday.
Looking at Chinese indices and at the China ETF list, the Morgan Stanley China (NYSE:CAF) offers the most upside at the moment.