April 13, 2012 (Chinavestor) Chinese stocks ended the second week in April on a high note after both key indexes advanced on Friday. The Hang Seg Index (INDEXHANGSENG:.HSI) surged 373.7 points or 1.8% thanks to a strong showing of mainland Chinese shares. All but one stock, China COSCO (HKG:1919), rose among the largest 25 Chinese stocks measured by the Xinhua 25 Index. This bodes well for the iShares FTSE/Xinhua 25 China Index (NYSE:FXI), the most liquid Chinese ETF trading on the NYSE. Most of the advance is attributed to a resurgent performance of the Dow and strong corporate earnings from Google Inc. (NASDAQ:GOOG) last night. Advances were not limited to Chinese stocks alone, stocks that advanced outnumbered those that fell eight to one among components of the broad Hang Seng Index (INDEXHANGSENG:.HSI) as well.
Investors took some profits on the Mainland after days of record advances, limiting upside for the Shanghai Composite Index (SHA:000001) on Friday. The index rose 8.3 points or 0.4% after a 1.8% surge on Thursday. Economic news moved stock in China on Friday. Chinese GDP growth for the first quarter fell to 8.1% from 8.9% three months ago but sound retail sales and money supply growth suggests the economy may be bottoming out.
Looking at components of key Chinese ETFs trading on the NYSE, the PowerShares Golden Dragon Halter USX China ETF (NYSE:PGJ) is the first to look at. The performance of the EFT mirrored that of the Dow Jones industrial Average (INDEXDJX:.DJI) for the most part. Oversold Synutra International (NASDAQ:SYUT) did best among Chinese ADRs followed by China Automotive Systems (NASDAQ:CAAS) and Tudou Holdings (NASDAQ:TUDO). But it's going to be the tech sector that will shine following strong earnings from Google inc. (NASDAQ:GOOG). China's Google, Baidu.com (NASDAQ:BIDU) is expected to benefit from Google's record earnings, as it did in the past.
Large cap Chinese stocks did very well in Hong Kong overnight, as components of the iShares FTSE/Xinhua China 25 Index below testify. Ffinancial institutions and insurance companies continued to outperform the broad market. Citic Bank (HKG:0998) surged 6.1% while China's second largest insurer Ping An Insurance (HKG:2318) rose 4.3%. ICBC (HKG:1398), the largest financial institution in the world, surged 3.2%, the most over two months.