July 31, 2012 (Chinavestor) Chinese stocks were looking for a reason to advance in Shanghai where investors are concerned about earnings. Baoshan Iron and Steel (SHA:600019), China's largest maker of the metal, reported a net income drop of 96%, pressuring the rest of the sector. China's economy is showing signs of cooling off, pressuring the Shanghai Composite Index (SHA:000001) in return. The index fell to just above 2,100 level not seen since May 2009.
Stocks advanced modestly in Hong Kong where investors are looking at the FED and the ECB. the Hang Seng Index (INDEXHANGSENG:.HSI) rose 211.4 points or 1.1% on Tuesday. China Unicom (HKG:0762) succumbed to profit taking after a 17.5% advance in the last two weeks. Most Chinese stocks advanced boding well for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI).