Green Stocks Stand Out in Flat China Market

Gene Linn |

solar stocks, are solar stocks a good buy, are solar stocks undervaluedGreen stocks continued to attract attention Wednesday as China stocks soldiered on through a low-key consolidation.

The Hang Seng Index in Hong Kong rebounded 0.7% to 23,307, but turnover was lackluster and the market failed to add to opening gains. The Hang Seng has surrendered 515 points since soaring to a 21-month high on January 30. The index of Chinese companies also bounced back from Tuesday’s losses, rising 1.4% to 11,683.

The market is going through a “healthy pullback” and will trade at 23,000 to 24,000 in the short term, according to Steven Leung, director of institutional sales at UOB Kay Hian.

The “short term” will probably last until China’s National People’s Congress provides details for new economic policies in March, he told Equities. The start of corporate results season in late February will also boost stocks, he said.

Some of the policy details are expected to focus on encouraging the renewable energy sector and shale oil and gas production, Leung said, with Huaneng Renewables (958, HK) possibly emerging as a major beneficiary. Leung’s favorite shale oil and gas play is HongHua Group (196, HK) followed by Anton Oilfield (ATONY). End

DAILY FIX

Hong Kong Blue Chips: +164, +0.7%, to 23,307, 2-20-13, Hang Seng Index

Chinese Stocks in Hong Kong: +157, +1.4%, to 11,683, 2-20-13, HSCE Index

Shanghai Stocks: +14, +0.6%, to 2,397, 2-20-13, Shanghai Composite Index.

Chinese Stocks in the U.S.: -2.6, 385.8, 2-19-13, Bank of New York Mellon, ADR Index-China

Insight: Rising stocks in the U.S. and Asia helped Hong kong open higher but the market failed to add to gains in sluggish trading. Environmentally friendly stocks starred in the dull market: water treatment company Tianjin Capital (TCEPY) jumped 15.2%. Chinese banks rebounded: ICBC (IDCBY) +1.3%.KGI Research

Quotable: "We remain bullish about the stock market in the medium term and recommend investors to overweight large cap H-shares if the Hang Seng Index dips below 23,000." Guoco Capital. 2-20-13

Chinese Company to Watch: Neo=Neon (1868, HK) "In 2010, LED luminaries penetration rate was only 0.2% in China. China government forecasts the lighting market to grow 30% annually, and plans to achieve an >20% of LED luminaries penetration rate and a 80% of LED chips localization rate by 2015." Tanrich Securities. 2-20-13

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
RSO Resource Capital Corp. 9.00 0.09 1.01 450,452

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Pinterest

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…

Spotify

Spotify is a online music service offering providing digital content from a range of record labels and artists. Users can browse through the interface by artist, album, genre, playlist, record…