September 21, 2011 (Chinavestor) Chinese stocks surged in Shanghai but fell in Hong Kong on Wednesday. The Shanghai Composite Index (SHA:000001) surged 65.2 points or 2.6%, the most in four weeks, as bargain hunters snapped up stocks on valuation. But investors remained worried about the global economy in Hong Kong, sending the Hang Seng Index (INDEXHANGSENG:.HSI) 190.6 points or 1.0% lower for the day.
Most components of the index fell for the day. Stocks that declined outnumbered those that advanced three to one among 42 components of the Hang Seng Index (INDEXHANGSENG:.HSI). Resource and metals stocks led the decline in Hong Kong but China Eastern Airlines (HKG:0670) rose 4.2% breaking a five day loosing steak. Air China (HLG:0753) continued to slide. China Southern Airlines (HKG:1055), the largest Chinese carrier by fleet size, shed 1.48% as well.
Most Chinese stocks fell in Hong Kong as components of the Xinhua 25 China Index testify. All but four components of the index fell, a broader decline that that of the Hang Seng Index (INDXHANGSENG:.HSI). China Life Insurance (HKG:2628) and Huaneng Power Int. (HKG:0902) were among HKEx-NYSE cross listed blue chips that outperformed the market but CNOOC Ltd. (HKG:0883) (NYSE:CEO), China's offshore oil specialist fell 2.3%.
Chinese ADRs decline for the most part on U.S. soil a day before. Sina Corp. (NASDAQ:SINA), one of the most visited webportal in China, tumbled 15.2% after the company announced plans to abide by China's censorship laws. Some argue that this might spell the end of the Twitter like instant message board of Sina Corp. (NASDAQ:SINA), Weibo.com.