August 19, 2010 (Chinavestor) Shares of Chinese companies advanced in Asia on Thursday buoyed by strong earnings and advances in gold and coal producers. The Shanghai Composite Index (SHA:000001) advanced 21.7 points or 0.7 percent followed by the Hang Seng Index (INDEXHANGSENG:.HSI) with a 49.7 points or 0.2 percent rise.
China Mobile (NYSE:CHL), the largest mobile carrier in the world, reported a first half profit increase of 4.2 percent, while CNOOC LTd. (NYSE:CEO), China's offshore oil specialist, delivered a record $3.82 billion first half profit, beating majors such as Exxon Mobile (NYSE:XOM) or Shell.
The rally was universal in Shanghai, stocks that advanced outnumbered those that fell five to one. China Shenhua Energy (SHA:601088), the largest Chinese coal miner, rose on anticipation that the company will receive funds from its parent company to strengthen its balance sheet. The company is looking for acquisitions abroad. China Petroleum & Chemical Corp. (SHA:600028) (NYSE:SNP), known as Sinopec, advanced 3.9 percent with heavy underlying volume. Asia's largest refiner has been under performing the broad market and such a spike might indicate the return of investors' interest for the stock.
China Shenua (HKG:1088) was the best performing Hang Seng Index (INDEXHANGSENG:.HSI) component on Thursday as well. Shares of the company rose 4.9 percent in Hong Kong. China Petroleum & Chemical Corp. (SHA:600028) (NYSE:SNP) advanced 3.9 percent in Hong Kong, mirroring the rise from Shanghai. Zijin Mining Co. (HKG:2899), China's largest gold miner, rose 3.6 percent while Aluminum Corp. of China (NYSE:ACH) (HKG:2600) advanced 3.4 percent. But shares of China Mobile (HKG:0941) fell 3.0 percent along with telecommunications equipment maker ZTE Corp. (HKG:0763).
Index futures have been trading in a wide range, swinging from the positive to a negative territory as the opening nears. If Hong Kong trading can be a guide before the NYSE open, expect Aluminum Corp. of China (NYSE:ACH) and China Petroleum & Chemical Corp. (NYSE:SNP) to outperform the broad market, but outlook is dim for China Mobile (NYSE:CHL). China's largest off-shore oil driller, CNOOC Ltd. (NYSE:CEO) is expected to rock the boat on Thursday.