Nov. 19, 2009 (Chinavestor) China stocks fell in Hong Kong for the third day in a row while Shanghai remained resilient. Shanghai Composite Index heavy weight Petrochina (SHA:601857) advanced 1.1% but railway companies were particularly strong: Guangshen Railway (SHA:601333) (NYSE:GSH) advanced 2.7% followed by a 2.3% and 1.9% advance of Daqin Railway (SHA:601006) and China Railway (SHA:601390), respectively.
Hong Kong took direction from the U.S. where housing and unemployment worries kept markets under water. Hang Seng index heavy weight China Mobile (HKG:0941) (NYSE:CHL) advanced 1.7% in Hong Kong but profit taking dragged down high flying airliners and Yanzhou Coal.
Index futures point to a lower open for China ADRs as well. But earnings will keep quality companies ahead, expect the solar sector to do well in the near term.
Chinese indices and ETFs are looking neutral with a positive bias from a technical point of view. The global shipping ETF, NYSE:SEA), is ahead of the curve, expect some weakness in the near term. But Chinese real estate ETf (NYSE:TAO) is weak, may have more room to go.