March 10, 2010 (Chinavestor) The Hang Seng Index was virtually unchanged while the Shanghai Composite shed -.66% on Wednesday, highlighting the uncertain mood of investors in Asia on Wednesday. Chinese economic data was mixed with soaring property prices in one hand and 45.7% export growth in the other hand. Investors fear that a real estate bubble might be building, prompting the government to tighten fiscal policy. Strong export growth suggests China will start exiting stimulus, raising uncertainties on the same time.
The Hang Seng Index was trading sideways for most of the day advancing +0.74 points or +0.0% to 21,208.29. But airliners continued to soar - shares of China Southern Airlines (HKG:1055) and China Eastern Airline (HKG:0670) jumped +8.8% and +4.4%, respectively. Last week's favorite China Telecom (HKG:0728) continued to slide falling -1.4% on Wednesday. On the corporate front China Mobile (HKG:0941) announced a 20% purchase of Shanghai Pudong Development Bank (SHA:600000) for $5.8 billion. Shares of China Mobile rose slightly to the news.
Earnings announcements will keep American investors busy on Wednesday. Fushi Copperweld (NASDAQ:FSIN) and ReneSola (NYSE:SOL) are reporting before the bell on Wednesday. The earnings calendar has been busy for China stocks this week with E-House Holdings (NYSE:EJ) and Home Inns & Hotel Management (NASDAQ:HMIN) on the menu from yesterday and Yingli Green Energy (NYSE:YGE) from Monday. For a complete weekly earnings calendar read: China stocks earnings calendar March 8-12. Upcoming companies for the week include UTSartcom (NASDAQ:UTSI), China Sunergy (NASDAQ:CSUN), and Acorn International (NYSE:ATV).
Most Chinese indices are unchanged or have been trading in a narrow range lately, as evidenced by the following chart. But crude oil has moved above her trading range as OPEC expects demand to firm up. Price of the crude has moved above $80/barrel with more increase on the way. Shares of Chinese shipping companies have been underdogs in Hong Kong on Wednesday. China Shipping Development (HKG:1138) shed -2.4% while shares of the world's largest container liner China COSCO (HKG:1919) fell -1.7% on Wednesday. Softness in global shipping is evidenced by the lack of momentum in Claymore/AlphaShares Global Shipping ETF (NYSE:SEA) as well.