June 13, 2011 (Chinavestor) The Hang Seng Index (INDEXHANGSENG:.HSI) broke a six day losing streak thanks to an afternoon rally on Monday. The index eked out a small, 0.4 percent gain by the end of the day after value investors stepped up to the plate. But even a late rally was not enough to save the Shanghai Composite Index (SHA:000001) from closing lower for the day. Chinese stocks tumbled in early morning trade after latest money supply data suggested lending took a hit in China. With low money supply and loan numbers for May, evidence is on the rise that the world's second largest economy is cooling off.
Large and small cap Chinese stocks took a hit, alike. Most components of the iShares FTSE/Xinhua 25 China Index (NYSE:FXI) fell in Asia Monday morning just like components of the Guggenheim China Small Cap ETF (NYSE:HAO) did.