Saturday, 28 March 2015 00:00

Week in review – Mar 27, 2015

Chinese companies traded in the US rose higher for a second week in a row, and pushed higher to levels not seen since early December 2014. The PowerShares Golden Dragon China ETF added about +1.2% during the week, extending YTD gains to over +6%. Stocks in Hong Kong were up about +0.5%, and stocks traded in Mainland China rose +2% as Chinese markets continued pricing in expected government stimulus efforts following weak eco data. This week’s eco data included both the HSBC/Markit Flash Manufacturing PMI (49.2 vs. 50.6 expected) and industrial profit for the first two months of the year…
Wednesday, 25 March 2015 00:00

HK up, Mainland down on Wednesday

Stocks in Mainland China finally proved that they weren’t impervious to gravity and traded lower on Wednesday, ending the 11-day streak of gains. Hong Kong stocks again followed the beat of their own drum, and ended the day higher instead of following the Shanghai Composite lower. By the end of the day’s session, the HSI was up +0.53%, and the Shanghai Composite down about -0.83%. Despite the day’s gain, Hong Kong saw lower volumes, trading almost 84 billion HKD (in line with the trailing monthly average). In Shanghai, total turnover reached about 645 billion RMB, lower than Tuesday but still…
Defying the odds yet another day, Mainland stocks posted a broad advance despite the HSBC Flash China Manufacturing PMI missing expectations and signaling a contraction in China’s economy. The Shanghai Composite traded up after the news, a repeat of the “it’s so bad it’s good” trade that has accompanied recent weak eco data out of China. A few bulls in China got cold feet near mid-day and sent the index tumbling in spectacular fashion, dropping about 3% from the morning peak to session lows. Buyers quickly stepped back in and pushed the Shanghai Composite to close with a whisker-thin gain…
Tuesday, 24 March 2015 00:00

Eco data - HSBC March 2015 Flash PMI 49.2

The HSBC/Markit Flash China Manufacturing PMI for March 2015 was 49.2, lower than the 50.6 expected and the 50.1 reading in February. (Official release here) The reading for March was an 11-month low, and marked the fifth month in the last year that the gauge has signaled contracting conditions for China’s manufacturers which contribute about one-third of the nation’s GDP.  Looking at the key sub-indexes, total new orders and export orders were weaker vs. February, the employment situation rapidly deteriorated (plumbing depths not seen since the end of 2013). Pricing pressures continued on both input and output prices, reigniting the…
China Finance Online (JRJC, profile) was last rated bullish on February 8th and the stock has seen an uptick over +10% since then. The stock isn’t covered by any of the institutional reseach firms, and the lack of a scheduled conference call for Q4 FY2014 earnings sum up to be…
Monday, 23 March 2015 00:00

Hong kong and Shanghai higher on Monday

Both Hong Kong and mainland equity markets powered higher for another day on Monday, with the HSI adding about +0.50% while the Shanghai Composite rose nearly 2%. Monday marked the eighth consecutive days of gains for Shanghai, and pushed the index further into overbought territory. Trading in both Hong Kong and Shanghai continued the recent theme of strong volume and turnover, suggesting that bulls aren’t losing steam. In total, about 92 billion HKD traded in Kong Kong vs. an average of about 73 billion HKD over the last month, and Shanghai saw about 662 billion RMB of trading vs.an average…
Monday, 23 March 2015 00:00

Headlines from 3/23/2015

Here is a rundown of some stories and headlines published over the weekend and Monday. This content will soon be subscription-only. If you'd like to receive access in the future, consider a subscription.   KongZhong (KZ) At the TFC Mobile Games Conference, KongZhong’s general manager Zhong Qin provided some insight to the company’s mobile game strategy for 2015. In remarks, Mr. Zhong noted the competitive pressures in the industry, and commented how many publishers, KongZhong included, were increasing their focus on improving targeting games for specific player types. The company has carved out a niche for itself through its War…
Saturday, 21 March 2015 00:00

Week in review - Mar 20, 2015

Chinese companies traded in the US surged higher this week, with the PowerShares Golden Dragon China ETF rising about +7% thanks in part to a lead from Hong Kong and Mainland markets, but also due to some individual earnings stories. The Hang Seng added +2.3% while the Shanghai Composite rose over +7%, the latter sitting on MTD gains of over +9%. Investors in the Mainland have been pushing shares higher following policymaker comments suggesting more support for the ailing economy may be soon on the way in the form of both fiscal and monetary policy tweaks. In US, the much-awaited…
Friday, 20 March 2015 00:00

Headlines from 3/20/2015

Here are some headlines making the rounds in China on March 20, 2105. Sohu.com (SOHU) Bloomberg ran a story that was picked up here in China that number 3 search engine Sogou (owned by Sohu.com and Tencent) may be looking toward an IPO, with US markets the suggested venue. Link to Chinese story. Sina.com (SINA) Story about Sina suiing Pheonix New Media (FENG) for copyright violations regarding Sina’s exclusive rights to broadcast the China Football (soccer) Association’s Super league matches. According to the article, Sina is aiming for about 10 million RMB (a little over 1.5 million USD). Link here.…
Stock markets in Hong Kong and China closed the week out in a mixed fashion; the Hang Seng lost -0.% while the Shanghai Composite managed to reverse intra-day losses to close up about +1.4%. The HSI saw heavy trading in the day, with total trading volume exceeding 116 billion HKD (vs. an average of about 75 billion HKD over the last month). Stocks in Shanghai continued the recent trend of heavy trading, with about 652 billion RMB trading during the day, exceeding the trailing monthly average of about 411 billion RMB, but slightly lower from levels earlier in the week.…
Chinese companies traded in the US recorded another day of gains on Thursday, with the PowerShares Golden Dragon China ETF (PGJ) closing the day with a slim gain of +0.1% while major US indexes closed lower (S&P 500: -0.5%, Dow -0.7%). The consensus seems to be that US markets headed lower after the Fed removed the “patient” language from its outlook on rates, signaling that the end of easy money may finally be in sight. Fed Chairwoman Janet Yellen continues to walk the tightrope between communicating bank policy while managing the market’s expectations and notes that “just because we removed…
Wednesday, 18 March 2015 00:00

News headlines from 3/18/2015

Here are some headlines from China, news items which investors in US-listed China stocks may find helpful. Baidu (BIDU, profile) Story regarding Baidu-invested Uber is in talks to tie up with Didi Dache and Kuaidi Dache competitor Yidao Yongche. Story in Chinese.  Article on Techweb about Baidu involved in a 170 million USD round of funding for B2C platform Youxin, which focuses on used cars. Link here.  Alibaba (BABA) Story about Alibaba’s strategy to push forward in Korea, saying that it that it was prepared to invest in South Korean logistics companies. Source in Chinese  Youku Tudou (YOKU, profile) TH…
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