April 27, 2011 (Chinavestor) Chinese stocks fell in Asia on Wednesday as fear that monetary tightening may choke off corporate profit growth internsified. High oil prices are fueling inflation in China where additional governemnt measures may come. All told, the Shanghai Composite Index (SHA:000001) registered its fourth straight days of losses. The Hang Seng Index (INDEXHANGSENG:.HSI) fell below the 24,000 level as a sell-off spread from large caps to smaller names.
Components of key Chinese ETFs were mixed in Asia on Wednesday. While most large caps fell, small caps were looing for direction. Most components of the iShares FTSE/Xinhua 25 Chinha Index (NYSE:FXI) fell in Asia before the trading day.
Overbought China Unicom (NYSE:CHU) continued to fell on profit taking but with two days of correction on its back, downside looks limited from here. Chinese airliners feel a pinch from high oil prices while China Life Insurance (NYSE:LFC) is weak on 2010 Q1 slow profit growth.