Oct. 29, 2009 (Chinavestor) Despite strong earnings from the banking sector, Chinese indices fell in Hong Kong and Shanghai on Wednesday. Property developers weighted down the market as investors fear government tightening of the sector will cut into the bottom line. China Vanke (SHE:200002), the largest Chinese developer, fell 4.73% spreading weakness over the sector. But corporate earnings are strong, especially in the financial industry. ICBC (HKG:1398) reported Q3 net growth of 19%, exceeding rival Bank of China's and Bank of Comunications'.
Looking ahead, index futures point to a higher open for the DJIA but investor sentiment is depend upon the latest GDP reading, released later today.
Chinese ETFs are falling along with underlying indices. The China real estate ETF, NYSE:TAO, is extremely vulnerable today but might be a good time to buy into weakness.
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