Aug. 3, 2010 (Chinavestor) Early morning gains turned to steep losses for China stocks in Shanghai while most of the gains evaporated in Hong Kong as investors turned cautious about the depth of government easing policies and prospects of rising inflation. The Shanghai Composite Index (SHA:000001) fell 45.5 points or 1.7 percent, the most in two weeks, while the Hang Seng Index (INDEXHANGSENG:.HSI) gave up 100 points of early gains to end the day 44.9 points higher at 21,457.66.
The decline was universal in Shanghai, a complete opposite of Monday's widely supported gains. Stocks that fell outnumbered those that advanced fifty to one. The picture was less dramatic in Hong Kong; nevertheless China Eastern Airlines (HKG:0670) (NYSE:CEA) fell -5.4 percent followed closely by Aluminum Corp. of China (HKG:2600) (NYSE:ACH). CNOOC Ltd. (HKG:0883) (NYSE:CEO) and Yanzhou Coal (HKG:1171) (NYSE:YZC) rose the most among NYSE-HKEx cross-slited China stocks.
If Hong Kong can serve as a proxy for China ADR trading, expect China Eastern Airlines (NYSE:CEA) and Aluminum Corp. of China (NYSE:ACH) feeling a pinch on the NYSE but CNOOC Ltd. (NYSE:CEO) and Yanzhou Coal (NYSE:YZC) might creep higher throughout the trading day.
Solarfun Power Holdings (NASDAQ:SOLF) is going to report second quarter earnings before the opening bell today, shedding light to the rest of the solar sector.