April 9, 2010 (Chinavestor) Shares of Chinese companies advanced in Asia on Friday as rumors about a possible Yuan revaluation spread. Chinese telecoms outperformed just as did insurers and resource players. The rally was stronger in Hong Kong, Hang Seng Index (INDEXHANGSENG:.HSI) advanced +1.6% while the Shanghai Composite Index (SHA:000001) rose +0.9% on Friday. The rally was universal in both markets, stocks that advanced outnumbered those that fell ten-to-one in Shanghai and seven-to-one in Hong Kong. Index heavy weight Petrochina Co. Ltd. (HKG:0857) rose +2.2%.
Carriers outperformed in Hong Kong after a Shanghai Securities News report that Chinese mobile operators will increase 3G related investment to RMB 400 billion in 2010. H-shares of China Unicom (HKG:0762) (NYSE:CHU) jumped +3.6% followed closely by China Telecom (HKG:0728) (NYSE:CHA) and China Mobile (HKG:0941) (NYSE:CHL).
Insurers pulled the Shanghai Composite higher for the day. Ping An Insurance (SHA:601318) rose +2.1% follwed by China Pacific Insurance (SHA:601601). Shares of China Life Insurance (SHA:601628) (NYSE:LFC) advanced +1.1% in Shanghai. But ICBC (SHA:601398), the largest financial institution in the world, shed -0.4% as credit tightening fears kept financials at bay.
China stocks listed in U.S. equity markets are expected to outperform on Friday as index futures point to a higher open. The relative large number of Chinese ADRs trading above 50-DMA is a positive sign, suggesting the rally isn't over just yet. The number of overbought Chinese ADRs is relatively low, suggesting more advance is within the card for Friday.
Chinese indices and ETFs have been trading in a narrow range - though with a positive bias.