September 20, 2010 (Chinavestor) Trading in Hong Kong was cautious ahead of the U.S. open. The Hang Seng Index (INDEXHANGSENG:.HSI) eked out a small 6.5 points or 0.03 percent gain for the day. Chinese auto shares shined; Brilliance Auto China (HKG:1114) rose 5.8 percent while electric car maker BYD Company (HKG:1211) advanced 5.7 percent. Power companies fell on Monday after an extensive winning streak last week. Huaneng Power International (HKG:0902), the largest independent power producer, was the worst performing component of the Hang Seng Index (INDEXHANGSENG:.HSI) and fell 2.0 percent. Smaller Huadian Power (HKG:1071) tumbled 1.4 percent.
Chinese airliners rose in Hong Kong; shares of China Southern Airlines (HKG:1055), the largest carrier by fleet size, rose 1.5 percent followed by a similar move by smaller rival China Eastern Airlines (HKG:0670). China Petroleum & Chemical Corp. (HKG:0386), the largest refiner in Asia, rose 1.7 percent while Yanzhou Coal Mining (HKG:1171), the third largest Chinese coal miner, advanced 1.1 percent. China Mobile (HKG:0941), the largest mobile carrier in the world, rose 0.8 percent while China Unicom (HKG:0762), the second largest mobile carrier, advanced 1.2 percent.
Investors continued the sell-off in the mainland sending the Shanghai Composite Index (SHA:000001) to a five week low on Monday. Investor are worried about government crack down on property prices, sending construction and related stock lower. But consumer stocks rose in Shanghai. SAIC Motor (SHA:600104), the largest Chinese car manufacturer, rose 2.1 percent and Ping An Insurance (SHA:601318), the second largest Chinese insurer, rose 2.5 percent.
China stocks investors in the U.S. might have got what they have been looking for: a mjor bullish call from a major investment bank. UBS AG told a "bull rally" is near for the next three to six months, a mjor new on Bloomberg this morning. UBS Sees Economy-Led China Stock Rally Within Six Months.
Index futures point to a positive open for American indices ahead housing data and FED meeting later the week. If components of the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as a proxy for U.S. listed Chinese ADRs, outlook is dim for Huaneng Power International (NYSE:HNP) and CNOOC Ltd. (NYSE:CEO), but this is it. All other Hong Kong listed Chinese ADRs rose, led by Sinopec (NYSE:SNP) and airliners; China Southern Airlines (NYSE:ZNH) and China Eastern Airlines (NYSE:CEA). China Unicom (NYSE:CHU) was the best among telecoms followed by China Mobile (NYSE:CHL). Yanzhou Coal (NYSE:YZC) rose 1.1 percent in Hong Kong earlier today.