September 16, 2011 (Chinavestor) The broad rally of the DJIA on Thursday set a positive tone for the Hang Seng Index (INDEXHANGSENG:.HSI) for the next day. The index opened 400 points up on Friday ending the day 273.8 points or 1.4% higher for the day. China Shipping Development (HKG:1138) surged 8.1% as fears of a global slowdown eased. The stock lost 40% YTD but have made some ground back lately. Profit taking hurt China Unicom (HKG:0762) and China Mobile (HKG:0941), the best Hong Kong listed Chinese stocks for the week.
Optimism evaporated by the end of the trading day among mainland investors. The Shanghai Composite Index (SHA:000001) gave up most early morning gains ending the day a mere 3.3 points or 0.1% higher. Investors remain cautious about possible monetary tightening in China, keeping stocks and indexes at bay. China Shenhua Energy (SHA:601088), the largest Chinese coal miner, rose 1.3% after releasing operational data for August.
Chinese stocks pulled the Hang Seng Index (INDEXHANGSENG:.HSI) on Friday. All but three components of the Xinhua 25 China Index advanced, boding well for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI). Easing European debt concerns helped financials stocks in Hong Kong. Four out of the best performing Chinese stocks came from the sector besides China Cosco (HKG:1919). The advance was less universal among smaller China stock on Friday, as components of the Guggenheim China Small Cap EETF (NYSE:HAO) testify.
Perfect World (NASDAQ:PWRD) tumbled 19.4% on Thiursday after lowering revenue guidance. News sent the rest of the sector falling as well, NetEas.ecom Inc. (NASDAQ:NTES) fell 4.75%.