July 16, 2012 (Chinavestor) Chinese stocks tumbled in Shanghai after profit warnings from ZTE Corp. (SHA:000063) and Suning Appliance (SHA:602024) hurt market sentiment. The Shanghai Composite Index (SHA:000001) fell 37.9 points or 1.8% to a record 3 year low.
Stocks went sideways in Hong Kong where investors monitor US earnings closely. The Hang Seng Index (INDEXHANGSENG:.HSI) rose 28.7 points or 0.2%. Chinese airliners extrended the rally from last Friday when they surged following news that Beijing will relax taxation and spur investment into the sector. China Eastern Airlines (HGK:0670) and China Southern Airlines (HGK:1055) rose 2.4% and 2.7%, respectively. But ZTE Corp. (HKG:0763) fell 16.3% on a profit warning, making it the worst performing component of the 42 member Hang Seng Index (INDEXHANGSENG:.HSI).