(Sept. 3, 2009 - Chinavestor) Call it a technical correction, but Chinese stocks bounced back off previous lows in Shanghai and Hong Kong on Thursday, setting a positive tone for stock exchanges around the world. The Shanghai Composite index jumped 130.05 points or 4.79% to 2,802.45. Aluminum Corp. of China (SHA:601600), an oversold China stock in Shanghai, jumped 9.60% while her H-shares in Hong Kong jumped 4.41%.
Hong Kong trading was upbeat as well. The Hang Seng Index advanced 239.68 points or 1.23% but remained under 20,000 points. This is turn suggests more upside potential for the index. An indication of the strength of the rally is that only one stock out of the forty four member Hang Seng Index component declined. Aluminum Corp. of China (HKG:2600) advanced just as did Jiangxi Copper and all metal makers. China Life Insurance H-shares did well, a prelude for a good NYSE showing for the stock (NYSE:LFC).
Looking at Chinese ADRs or American listed Chinese companies, their loss of momentum suggests a huge market day ahead. Expect quality Chinese ADRs do well, just as will oversold China stocks shine. Look up our oversold/overbought stick list for today to find trading opportunities for today. (The9 Limited Slips)