(Oct. 27, 2009 - Chinavestor) Chinese share fell hard in Asia on Tuesday following American markets lower. The Shanghai Composite fell -88.11 points or 2.83% to 3,021.46 while the Hang Seng index of Hong Kong declined -420.14 points or 1.86% to 22,169.59 points at the close.
The Hang Seng Index was squeezed by property developer stocks on fears that new rules, requiring more down payment and stricter financials for luxury condominiums, will damp demand. But the weakness in America didn't help either. The decline was universal, stock that fell outnumbered those that advanced 4:1 out of the forty four member index. CNOOC ltd. (NYSE:CEO) (HKG:0883), Huaneng Power (NYSE:HNP) (HKG:0902), Petrochina (NYSE:PTR) (HKG:0857) and China Mobile (NYSE:CHL) (HKG:0941) were mong notable NYSE-HKEx cross listed stocks that fell hard in Hong Kong this morning.
But shares of China Life Insurance (HKG:2628) (NYSE:LFC), Yanzhou Coal (HKG:1171) (NYSE:YZC), and China Eastern Airlines (HKG:0670) (NYSE:CEA) rose in Hong Kong on Tuesday.
Yanzhou Coal (NYSE:YZC) was helped by strong earnings by rival China Shenhua (HKG:1088), China's largest coal producer. China Life (HKG:2628) reported strong earning on Monday, while China Eastern Air (HKG:0670) was up on lower oil price.
Looking forward, expect oversold China NASDAQ names to do well ,besides LFC, CEA and YZC. Baidu.com (NASDAQ:BIDU) and Sohu.com (NASDAQ:SOHU) fell over 10% and a technical bounce back is highly likely.
Chinese ETFs and indices are expected to follow overall market sentiment. Expect the China Real Estate ETF (NYSE:TAO) to come off previous highs today.