China Stocks Make Up Early Loss in Quiet Trading

Gene Linn |

China Stocks Make Up Early Loss in Quiet TradingLast week’s quiet trading got almost inaudible Monday as investors await moves from major central banks on monetary easing.

The Hong Kong market dropped 200 points in early trading after being spooked when the Shanghai Composite index sank below 2,100. But Shanghai rebounded above that level and Hong Kong’s Hang Seng Index ended nearly unchanged, down 0.06% to 21,104. Last week the Hang Seng inched 0.3% lower. Turnover on Monday slumped from last week’s low levels. The index of Chinese stocks fell 0.4% to 9,795.

Big Chinese banks start reporting this week amid positive expectations, said Jackson Wong, vice president of sales at Tanrich Securities. Investors are encouraged that last week smaller banks like China Merchants (CIHKY) posted nice gains, he told Equities in an email.

But for the most part, investors a watching to see if the Federal Reserve Board, the European Central Bank and the People’s Bank of China launch new measures to stimulate the economy.

“With no major developments on the horizon, the market will still likely stay between 19700-20300 for another week before the summer ends,” said Wong. “In general, the market is waiting for the decisions from all the major central banks before it can make major moves.” End

DAILY FIX

Hong Kong Blue Chips: -12, -0.06%, to 20,107, 08-20-12, Hang Seng Index

Chinese Stocks in Hong Kong: -36, -0.4%, to 9,795, 08-20-12, HSCE Index

Shanghai Stocks: -8, -0.4% to 2,107, 08-20-12, Shanghai Composite Index.

Chinese Stocks in the U.S.: +1.8, 383.4, 08-17-12, Bank of New York Mellon, ADR Index-China

Insight: Hong Kong blue chips fell 200 points in early trading after the Shanghai Composite Index tumbled below 2,100 but ended with a marginal loss as Shanghai regained its critical support level. Food and beverage maker Tingyi (TCYMY) jumped 5.0% after reporting strong profits. KGI Research

Quotable: "Looking ahead, unless there will be positive news flow about quantitative easing in the US and/ or Europe, sentiment will likely stay weak as corporate results should mostly see no positive surprise. Furthermore, investors may keep an eye on the HSBC Flash Manufacturing PMI (Purchasing Managers Index) in China, which is expected to be released on next Thursday. The benchmark index may see support level at 19,700 points." BEA Securities. 08-17-12

Chinese Company to Watch: Giordano (GRDZF) "Dividend yields in 2012 and 2013 stand at 7%, adding further appeal." UOB Kay Hian Group. 8-17-12

Brokerages and analysts cited here have disclaimers on their websites emphasizing their statements are for information only. They do not endorse my blog, and I don’t endorse them.

For a list of Chinese companies sold in the U.S. and information on each company go to http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
GGP General Growth Properties Inc. 25.46 0.62 2.50 3,864,543

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