April 1, 2010 (Chinavestor) Stronger than expected manufacturing data sent the Hang Seng Index (INDEXHANGSENG:.HSI) to a ten week high while stocks in Shanghai experienced a broad rally on Thursday. Stocks that advanced outnumbered those that fell 25:1 in Shanghai and 7:1 in Hong Kong.
Chinese economic growth accelerated to 10.7% in the first quarter, the best reading since 2007. The Purchasing Managers' Index rose to 55.1 from 52 a month ago, another sign of economic growth. PMI reading of over 50 means expansion.
Shipping companies led the rally in Hong Kong, China Cosco (HKG:1919), the largest container shipping company in the world advanced +5.3% followed closely by China Shipping Development (HKG:1138). Lower shipping rates have kept these companies at bay but now that the global economy is on the recovery, under appreciated stocks made a comeback.
SAIC Motor (SHA:600104), the largest Chinese car maker and GM partner, announced that 2009 net income grew tenfold! 48 out of the 50 largest Chinese listed companies in Shanghai advanced on Thursday.
American listed Chinese companies have been lagging behind Asian counterparts. With little momentum to show for, today is a potentially big day for China ADRs before the long weekend.
Earnings: Rino International (NASDAQRINO) is trading -4.5% lower on 2010 revenue guidance. SkyPeople Fruit (AMEX:SPU) reported after the close yesterday. For more coverage visit Chinavestor.com later the day.
Chinese indices are on fire in Asia. The global shipping ETF (NYSE:SEA) is going to catch up with the rest of the sector today - indicated by the strong showing of shipping lanes in Hong Kong. Oil is above $84/barrel and is moving up as the global economic recovery continues.