July 20, 2010 (Chinavestor) While investors in the U.S. remained cautiously optimistic, lifting the DJIA a mere 56.5 points or 0.6 percent on Monday, investors in Shanghai continued to snap up almost everything as earnings roll in. The Shanghai Composite Index (SHA:000001) advanced 2.1 percent on top of yesterday's 2.4 percent run. The rally was universal, only one out of the 50 member SSE-50 Index, measuring the performance of the fifty largest publicly traded Chinese companies in Shanghai, declined. Hong Kong enjoyed a lift as well, the Hang Seng Index (INDEXHANGSENG:.HSI) rose 173.6 points or 0.9 percent after a slight decline on Monday.
Zijin Mining (HKG:2899) (SHA:601899), the largest Chinese gold miner, was the best performing China stock both in Shanghai and Hong Kong, breaking a five day losing streak. Iron, steel and other resource companies outperformed the market in Hong Kong; Aluminum Corp. of China (HKG:2600), the third largest aluminum marker in the world, advanced 4.0 percent trailing Maashan Iron & Steel (HKG:0323)But it wasn't cake walk for China Unicom (HKG:0762), the second largest Chinese mobile carrier, after reporting dismal subscriber growth for June. The stock fell 0.4 percent for the day. and Angang Steel (HKG:0347). While oil companies stayed at bay, Yanzhou Coal Mining (HKG:1171), the third largest Chinese coal miner, rose 3.00 percent.
Investors in Shanghai snapped up resource stocks on valuation betting that the economic growth will keep demand high for metals and construction materials. Zijin Mining (SHA:601899) rose the maximum allowed 10 percent for the day followed by Jiangxi Copper (SHA:600362) and Jinduicheng Molybdenum (SHA:601958).
Ping An Insurance (SHA:601318) (HKG:2318), the second largest Chinese insurer, fell 0.2 percnet in Hong Kong and was the second worst perfroming stock on Tuesday in Shanghai as well.
Chinese ADRs are expected to follow Hong Kong listings - the Hang Seng Index (INDEXHANGSENG:.HSI) in particular - closely on Tuesday. That gives high hopes for Aluminum Corp. of China (NYSE:ACH) and Yanzhou Coal Mining (NYSE:YZC) while China Unicom (NYSE:CHU) is expected to give back some of the gains from yesterday.