June 2, 2010 (Chinavestor) A late afternoon rally helped the Shanghai Composite Index (SHA:000001) to end the day in the black while a late afternoon sell-off pushed the Hang Seng Index (INDEXHANGSENG:.HSI) into the red. Bargain hunters snapped up oversold real estate and auto stocks while financials weighted on the markets. China Vanke (SHA:200002), the largest Chinese listed developer, rose 0.92% while Poly Real Estate (SHA:600048), the second largest property developer, advanced +3.0%.
Bank of China (SHA:601988) tumbled -5.1% in Shanghai after the bank has started to issue convertible bonds to replenish capital. Industrial Bank Co. (SHA:601166) tumbled -5.8% as it nears the required adequate capital ratio of 11.5% as well.
Chinese ADRs are expected to follow overall market sentiment on Wednesday. Shanda Interactive (NASDAQ:SNDA) and its online game unit, Shanda Games (NASDAQ:GAME) reported 2010 first quarter results late last night. While revenues increase YoY, most measures fell from last quarter, putting pressure on Shanda's stock. Canadian Solar (NASDAQ:CSIQ) tumbled over 20% in pre-market trading as the company announced a delay in reporting 2010 Q1. The delay is due to investigations by the audit committee.
Chinese ADRs continue to remain under pressure as the "Technical measures of China ADRs" testify.
There isn't much direction to find in major U.S. and Chinese indices and ETFs. Most indicators have been trading in a narrow range as investors grapple with fears stemming from geopolitical risks to BP's tumble on Golf oil spill.