June 8, 2011 (Chinavestor) Chinese shares continues to erode in Hong Kong but extended their advance on the mainland. The Hang Seng Index (INDEXHANGSENG:.HSI) fell 207.0 points or 0.9% as investors followed U.S. markets lower. Ben Bernanke's somber assessment of the U.S .economy hurts stocks globally. But investors in Shanghai found support for a slower U.S. growth will likely stop additional monetary tightening in China. The Shanghai Composite Index (SHA:000001) rose 6.0 points or 0.2% for the day.
Aluminum Corp. of China (HKG:2600) (SHA:601600), the largest aluminum maker of the country, advanced the max allowed 10% in Shanghai and was the best component of the Hang Seng Index (INDEXHANGSENG:.HSI) in Hong Kong.
Small cap Chinese stocks remained volatile on the NYSE and NASDAQ on Tuesday. Larger 51job Inc. (NASDAQ:JOBS) fell over 10% below its 200 DMA. The company is fundamentally solid and is oversold. Another oversold stock, Gushan Environmental Energy (NYSE:GU) popped on Tuesday but long term support is in question. For more about overbought and oversold Chinese stocks, visit today's report here.