China Stocks Set to Rise Early This Week

Gene Linn |

“In general China stocks should be strong early this week because … there’s less risk of credit tightening,” said Peter So, managing director and co-head of research at CCB International.

Improved news about Europe’s debt crisis and the U.S. economy will also boost stocks prices, be told Equities. “Investors will reduce cash holdings and move into stocks with growth potential.”

Among the potential winners are some manufacturers and consumer products plays. Two companies that So likes are computer firm Lenovo (LNVGY) and Brilliance China (BCAHY), which makes BMWs in China.

Gains will probably evaporate later in the week after a steep rise in stock prices since October 4, according to So. End

DAILY FIX -- Chinese Resources Stocks Post Good Gains

Hong Kong Blue Chips: +372, +2.0%, to 18,874, 10-17-11, Hang Seng Index

Chinese Stocks in Hong Kong: +269, +2.8% to 9,853, 10-17-11, HSCE Index

Shanghai Stocks: +0.4%, 2,440, 10-17-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: +5.9, to 375.7, 10-14-11, Bank of New York Mellon, ADR Index-China

Insight: Hong Kong gained as increased optimism that Europe will solve its debt crisis boosted Asian markets. However, turnover fell, reflecting a lack of momentum. Speculation that the European Central Bank would pump money into the economy helped Chinese resources stocks. Coal producers posted strong gains: China Shenhua (CSUAY) rose 5.7%. KGI Research

Quotable: "China is going to release its GDP data on Tuesday, which is expected to grow 9.2% in Q3 after a 9.5% rise in Q2. Meanwhile, major PRC stocks will also reveal their third-quarter results in the next couple of weeks. The results are seen unexciting, as only a few of them have issued positive earnings alerts so far. Investors will also keep close eyes on Europe to see if there is any bailout measures from the EU Summit scheduled on Sunday to help contain market volatility." BEA Securities. 10-14-11

Chinese Company to Watch: Cosco International (0517.HK), shipping service provider "An attractive accumulation opportunity for long-term investors. Cosco Int’l (CSB.BE) fell by 26.4% and underperformed the HSI by 12.0% over past three months. We believe the correction is overdone as the counter is trading below net cash of $5.4bn or $3.6 per share." Guoco Capital. 10-14-11

Brokerages and analysts cited 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

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of 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:


Symbol Name Price Change % Volume
CI Cigna Corporation 123.63 0.00 0.00 1,352


Emerging Growth

Enertopia Corp

Enertopia Corp is engaged in the exploration of lithium in Nevada, USA. The Company's project includes Central Nevada Lithium Brine Projects.

Private Markets


Pinterest is a visual discovery and planning tool. Users ("Pinners") use the site and apps to get ideas for their future, such as recipes, places to travel, and products to…


Cloudera offers enterprises a new data platform built on the Apache Hadoop open-source software package. Hadoop is a data-management platform that can consolidate data in a single repository for comprehensive…