China stocks look to catch their breath this week after a huge drop followed by a respectable rally last week.
Hong Kong’s Hang Seng Index on Monday had an up-and-down day in very thin turnover, finishing 0.2% higher at 21,134. The index of Chinese companies slumped 0.3% to 11,226.
The Hang Seng plunged 4.3 % in the first three days last week and then rebounded 2.2 %.
“After (a) wild ride last week, a lot of investors will try to reposition or reassess the situation,” said Jackson Wong, vice president for sales at Tanrich Securities. He told Equities in an email that the Hang Seng will probably consolidate between 20,500 and 21,500.
The focus of the market will continue to be heavyweight China Mobile (CHL). he said. It led the Hang Seng last week and stands to keep rising this week ahead of its earnings announcement on Thursday
Chinese economic figures for February that came out late last week will move some sectors. The weak export number might weigh on shipping stocks, Wong said. He added that the lower-than-expected inflation number could prompt China to further stimulate domestic production, helping in consumer-related companies. End
DAILY FIX
Hong Kong Blue Chips: +48, +0.2%, to 21,134, 03-12-12, Hang Seng Index
Chinese Stocks in Hong Kong: -30, -0.3%, to 11,226, 03-12-12, HSCE Index
Shanghai Stocks: -0.2% to 2,433, 03-12-12, Shanghai Composite Index.
Chinese Stocks in the U.S.: +5.3, 413.3, 03-09-12, Bank of New York Mellon, ADR Index-China
Insight: Hong Kong blue chips once fell 180 points but ended with a small gain in weak turnover. Heavyweight China Mobile (CHL) rose 3.9% ahead of its results announcement Thursday, helping to wipe out blue chips’ early losses. KGI Research
Quotable: “For the coming week, market direction may rely on the money supply growth in China and company results that will be released in next week, as well as any positive news or stimulus from the National People’s Congress and Greek debt restructuring. The HSI is likely to maintain its growth momentum and may test 21,600 points.” BEA Securities. 3-9-12
Chinese Company to watch: “PARKSON GROUP (PKSGY) Major department store in China while share price underperformed. China government launched measures to boost consumption, could speculative buy.” KGI Asia. 3-12-12
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
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