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China stocks await Italian bond sale

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risk_2 January 27, 2012 (Chinavestor) China stocks kicked off a strong start after the Chinese New Year Celebrations in Hong Kong. The Hang Seng Index (INDEXHANGSENG:.HSI) rose 62.5 points or 0.3% after a 328.8 points advance a day before. ZTE Corp. (HKG:0763) bounced back up 2.6% after a 5.6% dive a day before. But most stocks traded in a narrow range before Monday's 10-year Italian bond sale, a barometer for investor's appetite for risk. Trading will resume in Shanghai on Monday. Under appreciated Chinese telecoms were outperforming among components of the Xinhua 25 Index. Given their large market cap, the move bodes well for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI), the most liquid Chinese ETF.

 

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