December 10, 2010 (Chinavestor) The increase of bank reserve ratio for the third time in five weeks in China kept major Chinese indices at bay on Friday. The Shanghai Composite Index (SHA:000001) rose 30.1 points or 1.1% but the Hang Seng Index (INDEXHANGSENG:.HSI) fell 8.9 points or 0.0%.
Most large cap stocks advanced on Friday, as components of the iShares FTSE/Xinhuna 25 China Index (NYSE:FXI) testify. But airliners fell; China Southern Airlines (HKG:1055) tumbled 4.7%, the most among 42 members of the Hang Sang Index (INDEXHANGSENG:.HSI). Air China (HKG:0753), China's flagship carrier, dived 6.1%.
Index futures point to a higher open for U.S .stocks and Chinese ADRs alike. If components of the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as proxy for ADR trading, outlook is dim for airliners but Guangshen Rail (NYSE:GSH) and Sinopec Corp. (NYSE:SNP) is looking good.