December 30, 2010 (Chinavestor) Chinese stock indices advanced in Asia on Thursday albit the rally was misleading. The Shanghai Composite Index (SHA:000001) rose8.0 points or 0.3% thanks to a sound performance of the financial sector. But stocks that fell outnumbered those that advanced three to one in Shanghai. The Hang Seng Index (INDEXHANGSENG:.HSI) advanced 30.0 points or 0.1% as institutional investors stepped to the side, dying up liquidity ahead of the New Year.
Chinese airliners bounced back up from yesterdays' lows while oil companies surrendered most of the gains from a day before. The market lacked direction in Hong Kong while Shanghai saw a broad sell-off except for the financial sector.
With no direction for the markets, outlook for Chinese ETF is missing direction as well. Most components of the iShares FTSE/Xinhua 25 Index (NYSE:FXI) advanced in Hong Kong, suggesting large cap Chinese ADRs will open with a positive bias on Thursday.
Qiao Xing Universal Resources, Inc. (NASDAQ:XING) and Qiao Xing Mobile Communication Co., Ltd. (NYSE:QXM) advanced the most among small cap Chinese stocks on Wednesday but became overbought, according to the overbought/oversold report this morning. For more stock specific information, visit XING, CNTF and other stock extremes.