December 6, 2010 (Chinavestor) Chinese stocks traded mixed in Asia; Mainland investors bought energy and financial stocks sending the Shanghai Composite Index (SHA:00001) 14.7 points or 0.5% higher for he day. But investors in Hong Kong reacted with a stark sell-off as the European debt crisis continued to unfold. The Hang Seng Index (INDEXHANGSENG:.HSI) fell over 100 points in the last hour of trading to shed 82.8 points or 0.4% for the day.
Most large cap stocks fell in Hong Kong putting pressure on the iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI) and related ETFs.
Looking at components of key U.S. listed Chinese ETFs, outlook is dimmest for iShares FTSE/Xinhua China 25 Index (ETF) (NYSE:FXI). Stocks that fell outnumbered those that advanced five to one among its 25 components. Outlook is not that good for Guggenheim China Small Cap ETF (NYSE:HAO) either, its is unlikely that small caps will be able to fight the market.
Petrochina Co. Ltd. (NYSE:PTR), CNOOC Ltd. (NYSE:CEO) and China Mobile (NYSE:CHL) did well ahead the bell in different Chinese markets. But Chinese airliners fell hard in both markets suggesting China Southern Airlines (NYSE:ZNH) and China Eastern Airlines (NYSE:CEA) are up to a tumble on the NYSE today.