August 30, 2010 (Chinavestor) Shares of Chinese companies advanced in Asia on Monday, following comments from Fed Chairman Ben Bernanke last Friday that sent the DJIA surging 165 points. The Shanghai Composite Index (SHA:000001) advanced 41.9 points or 1.6 percent, it's best gain since August 16, while the Hang Seng Index (INDEXHANGSENG:.HSI) broke a six day loosing streak and jumped 139.9 points or 0.7 percent.
Investors in Shanghai took merit from comments of the FED Chairman, hoping that a soft landing is a real possibility for China. Construction materials and consumer staples led the advance for the day. The rally was universal, stocks that advanced outnumbered those that fell twenty to one. Jiangxi Copper (SHA:600362), the largest Chinese producer of the metal, advanced 5.4 percent in Shanghai while her Hong Kong listed H-shares (HKG:0358) jumped 4.4 percent. The stock was the second best performer among the 42 member Hang Seng Index (INDEXHANGSENG:.HSI) components. The metal is considered by many as a barometer for the construction sector.
China Shenhua (HKG:1088), the largest Chinese coal miner, jumped 1.77 percent following better-than-expected quarterly results, lifting the rest of the sector. Yanzhou Coal (HKG:1171) (NYSE:YC), the third largest coal miner in China, rose 2.3 percent. Zijin Mining (SHA:601899), the largest gold miner in China, jumped 3.4 percent in Shanghai.
China Unicom (HKG:0762) (NYSE:CHU), the second largest Chinese mobile carrier, jumped 2.5 percent but her rival China Mobile (HKG:0941) (NYSE:CHL) fell 1.2 percent following news that Vodaphone (NYSE:VOD) may sell CHL shares after the lock up period expired. Vodaphone (NYSE:VOD) had a 3.2 percent stake in China Mobile (NYSE:CHL) according to the latest annual report.
If Hong Kong can serve as a proxy for NYSE listed Chinese ADRs, China Eastern Airlines (NYSE:CEA) is ahead of the game on Monday. China Southern Airlines (NYSE:ZNH), the largest carrier by fleet size, rose just 0.3 percent in Hong Kong on Monday. China Life Insurance (NYSE:LFC), the nation's largest life insurer, shed 1.2 percent in Hon Kong, as investors continue to digest the latest financial report of the company. China Life Insurance (NYSE:LFC) is oversold, technically speaking, suggesting value buyers might want to build up some positions now...