February 11, 2011 (Chinavestor) Chinese shares stabilized over Friday after days of heavy losses earlier the week. The Shanghai Composite Index (SHA:000001) advanced 9.6 points or 0.3% on Friday despite news that Beijing increased reserve ratio for certain banks. The Hang Seng Index (INDEXHANGSENG:.HSI) edged 120.3 points or 0.5% higher on Friday but is sill off over 1,000 points or 4.5% for the week.
Airliners and energy companies led the index higher while resource and telecoms sectors remained mixed. H-shares of China Southern Airlines (HKG:1055) (NYSE:ZNH) and China Eastern Airlines (HKG:0670) (NYSE:CEA) were among the best performing components of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI). Oversold CNOOC Ltd. (HKG:0883) (NYSE:CEO), China's offshore oil specialist, broke a 5 day loosing streak and advanced 1.9%.
NetEase.com Inc. (NASDAQ:NTES) and Shanda Interactive (NASDAQ:SNDA) are stocks to watch from Thursday for these companies advanced the most among Chinese ADRs yesterday.
Most laarge cap Chinese stocks advanced in Hong Kong on Friday, boding well for the iShares FTSE/Xinhua China 25 Index ETF (NYSE:FXI). The rally was less universal among small cap stocks in Asia this morning, as the 162 members of the Guggenheim Small Cap China Index (NYSE:HAO) testify.
Online game developer and operator NetEase.com Inc. (NASDAQ:NTES) and Shanda Interactive (NASDAQ:SNDA) advanced the most among Chinese ADRs on Thursday as investors await financial reports later the month. NetEase.com Inc. (NASDAQ:NTES) is scheduled to report on February 23 after the close while Shanda Interactive (NASDAQ:SNDA) is scheduled to early March. China Green Agriculture (NYSE:CGA) fell 6.1%, some of the most among NYSE listed Chinese stocks, after a mixed outlook and lackluster growth in the latest quarter.
If components of the Hang Seng Index (INDEXHANGSENG:.HSI) can serve as proxy ahead of ADR trading, outlook is great for Chinese airliners such as China Eastern Airlines (NYSE:ZNH) and China Southern Airlines (NYSE:CEA). Oversold CNOOC Ltd. (NYSE:CEO) is expected to bounce back up along with Sinopec (NYSE:SNP), Asia's largest refiner.