May 27, 2011 (Chinavestor) Chinese stocks went into opposite direction on Friday in Asia. The Shanghai Composite Index (SHA:000001), the most widely used gauge of Mainland stocks, fell 26.9 points or 1.0% while the Hang Seng Index (INDEXHANGSENG:.HSI) continued to advance. Hong Kong's premier barometer rose 253 points or 1.1% for the week as commodity and energy stocks recovered.
Petrochina Co. Ltd. (HKG:0857), the largest Chinese oil producer, surged 3.8% while Yanzhou Coal Mining (HKG:1171) rose 2.5%. China Shenhua Energy (HKG:1088), the largest Chinese coal miner, rose 2.05%.
Chinese ETFs had a sound day on Thursday, small and large cap ETFs all advanced. Outlook remains bright for large caps before the NYSE open, for all components of the iShares FTSE/Xinhua 25 China Index (NYSE:FXI) advanced in Asia on Friday. Small caps enjoyed a less broad advance; stocks that advanced outnumbered those that fell two to one among components of the Guggenheim Small Cap China ETF (NYSE:HAO).
Volatility is back for Chinese ADRs. Three stocks surged over 10% on Thursday and two fell over the same mark. Gushan Environmental Energy (NYSE:GU) gave back all of previous day's gains as investors digested earnings.