Linn's China Gate Stocks

SEPTEMBER 30, 2011 -- CHINESE BANKS DRAG DOWN HONG KONG

DAILY FIX
 
Hong Kong Blue Chips: -419, -2.3%, to 17,592, 09-30-11, Hang Seng Index

Chinese Stocks in Hong Kong: -360, -3.9% to 8,917, 09-30-11, HSCE Index

Shanghai Stocks: -0.3%, 2,359, 09-30-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: -1.8 to 359.4, 09-29-11, Bank of New York Mellon, ADR Index-China

Insight: Hong Kong blue chips opened 65 points lower and continued to fall, dragged down by big declines in Chinese bank stocks. Worry about declining asset values hit big banks like the Agricultural Bank of China (OTC ACGBY, 1288 in Hong Kong), which plunged 8.5%. KGI Research

Quotable: "Short-selling turnover for the market increased again. Total amount was up 32% to HK$9.55bn. Blue-chips short-selling turnover was up 48% to HK$6.37bn. The short-selling turnover ratios for these two groups were 13% and 22%, respectively. It reflected the sentiment that the market would retreat again in the near term." Core Pacific Yamaichi. 9-30-11

Chinese Company to Watch: "The giant banks such as ICBC (IDCBY;1398 HK), CCB (CICHY; 939.HK), BOC (BACHY; 3988.HK) plunged 3.81%, 2.31% and 3.02%, respectively. It means investor confidence in the financial sector has not been restored." Haitong Securities. 9-30-11

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 28, 2011 -- HONG KONG DOWN AFTER BIG GAIN

DAILY FIX
 
Hong Kong Blue Chips: -119, -0.7%, to 18,011, 09-28-11, Hang Seng Index

Chinese Stocks in Hong Kong: -17, -0.2% to 9,277, 09-28-11, HSCE Index

Shanghai Stocks: -1.0%, 2,392, 09-28-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: +2.6 to 361.3, 09-27-11, Bank of New York Mellon, ADR Index-China

Insight: Hong Kong opened lower after Tuesday's sharp rise and retreated further in the early afternoon in line with a drop in Asian and Mainland Chinese markets but gained back some losses before closing. Higher commodity prices helped Chinese resources plays. Oil producer CNOOC (NYSE CEO, 0883 in Hong Kong) gained 3.9%. Cement producers and construction companies continued to rebound: CNBM (OTC CBUMY, 3323) +3.4%.   KGI Research

Quotable: "Market rebound may continue but confidence remains weak." BOCOM International. 9-27-11

Chinese Company to Watch: China properties. "Considering current market volatility, we suggest sticking to index composite stocks with high market liquidity and with developers with healthy balance sheets. According to this criteria, we recommend CR Land (1109...." CCB Internatonal. 9-26-11

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 27, 2011 -- OVERSOLD HONG KONG STOCKS REBOUND

DAILY FIX
 
Hong Kong Blue Chips: +723, +4.2%, to 18,131, 09-27-11, Hang Seng Index

Chinese Stocks in Hong Kong: +559, +6.4% to 9,292, 09-27-11, HSCE Index

Shanghai Stocks: +0.9%, 2,415, 09-27-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: +2.6 to 361.3, 09-26-11, Bank of New York Mellon, ADR Index-China

Insight: News that European authorities are devising a plan to shore up big banks threatened be the region's debt crisis helped ignite a strong rebound in the substantially oversold Hong Kong market. Ping An Insurance (OTC PNGAY;2318 in Hong Kong) rose 10.1% after the company said its capital status was healthy. Chinese banks made strong gains: CMB (OTC CIHKY; 3968) +10.4%.  KGI Research

Quotable: "HK market rebounded from trough at 16,999 (on Monday), showing investors believed that this level will be a strong support." Core Pacific Yamaichi. 9-26-2011

Chinese Company to Watch: "We believe the market’s general view of Shanghai Electric ((SE) as a power equipment manufacturer underestimates the company’s true value. With leading positions in multiple businesses (around 30%, 50% and 15% shares of China’s thermal, nuclear island and elevator markets), SE’s diversification places it at an unique position as a conglomerate to benefit from a number of growth opportunities while mitigating risks relating to temporary glitches in the new energy segment." Haitong Securities. 9-27-2011

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 26, 2011 -- HONG KONG REBOUNDS FROM SUB-17,000

DAILY FIX
 
Hong Kong Blue Chips: -261, -1.8%, to 17,408, 09-26-11, Hang Seng Index

Chinese Stocks in Hong Kong: -298, -3.3% to 8,735, 09-26-11, HSCE Index

Shanghai Stocks: -1.6%, 2,393, 09-26-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: +9.1 to 358.8, 09-23-2011, Bank of New York Mellon, ADR Index-China

Insight: Hong Kong opened flat but fell sharply in line with a drop in Asian markets. Blue chips sank below 17,000 in mid-afternoon but rebounded late in active trading. A drop in gold and other commodity prices hurt resources plays. Cement producers and construction companies posted big losses: CNBM (OTC CBUMY; 3323 in Hong Kong) -11.1%. KGI Research

Quotable: "For the coming week, the market will eye ... the vote by the German parliament on the European Financial Stability Facility on Sep 29. Weak tone is likely to persist next week, and the HSI may test 17,000 points." BEA Securities. 9-23-2011

Chinese Company to Watch: PCCW (PINK PCCWY, 8 in Hong Kong), Hong Kong telecom operator. "PCCW is currently trading at 11.5x 2011 PER, 5.2% dividend yield and 7.1x EV/EBITDA, which we consider is reasonable in view of its defensive nature amid the current uncertain environment." Guoco Capital. 9-23-2011

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 23, 2011 -- HONG KONG STOCKS SEARCH FOR BOTTOM

DAILY FIX
 
Hong Kong Blue Chips: -243, -1.8%, to 17,669, 09-23-11, Hang Seng Index

Chinese Stocks in Hong Kong: -170, -1.8% to 9,033, 09-23-11, HSCE Index

Shanghai Stocks: -0.4%, 2,433, 09-23-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: -20.0 to 349.7. 09-22-2011, Bank of New York Mellon, ADR Index-China

Insight: Falling global markets and a stronger U.S. dollar pushed Hong Kong stocks lower in heavy turnover, although blue chips ended the day of volatile trading slightly off day-lows. KGI Research

Quotable: Prada (1913). "We expect Hang Seng Index to remain volatile in near-term, as latest moves of the Federal Reserve failed to restore investors’ confidence on economic outlook." Guoco Capital. 9-22-2011

Chinese Company to Watch: Prada is likely to benefit from diverse growth drivers, which include the expansion of retail network in emerging markets (especially China) and the strong market demand for its Miu Miu's products." CFSG. 9-22-2011

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 22, 2011 -- HONG KONG BLUE CHIPS TO TWO-YEAR LOW

DAILY FIX
 
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Hong Kong Blue Chips: -912, -4.8%, to 17,912, 09-22-11, Hang Seng Index

Chinese Stocks in Hong Kong: -620, -6.3% to 9,203, 09-22-11, HSCE Index

Shanghai Stocks: -2.8%, 2,443, 09-22-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: -13.3 to 369.7. 09-21-2011, Bank of New York Mellon, ADR Index-China

Insight: The Federal Reserve Board's pessimistic assessment of the U.S. economy drove Hong Kong blue-chip stocks to a two-year low in heavy turnover. Chinese banks and properties tumbled. After authorities revised taxes on oil and gas production, Petrochina (NYSE SNP; 857 in Hong Kong) fell 3.7%. KGI Research

Quotable: "Since US stock market fell sharply after the FOMC meeting last night, together with the strengthening US dollar, it would hurt the HK stock market. Since local blue chips dropped further in US ADR market, we expect the Hang Seng Index to test its new year low today." KGI Asia. 9-22-2011
 
Chinese Company to Watch: Kunlun Energy (OTC KCYCY; 135) "Given our bullish outlook on LNG business, we maintain our 2012 EPS forecast at HK$0.95. We reiterate our BUY rating on Kunlun Energy but revised our 6-month target price to $14.25 based on a more conservative 15x 2012 PER." Guoco Capital. 9-21-2011

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 21, 2011 -- HONG KONG DOWN IN VOLATILE TRADING

FOR AN EXPANDED POST, SEE WWW.EQUITIES.COM

DAILY FIX
 
Hong Kong Blue Chips: -191, -1.0%, to 18,824, 09-21-11, Hang Seng Index

Chinese Stocks in Hong Kong: -94, -1.0% to 9,823, 09-21-11, HSCE Index

Shanghai Stocks: +2.7%, 2,513, 09-21-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: -3.3 to 383.0. 09-20-2011, Bank of New York Mellon, ADR Index-China

Insight: The blue-chip Hang Seng Index plunged 300 points in the morning before a rally in Maninland markets helped erase most losses by mid-day. However selling pressure emerged in the afternoon, and the Index closed down 1.0% in volatile trading. Chinese banks sank between 1% and 2%. Construction enginering and cement producers stabilized after a recent sell-off. Cement maker Anhui Conch (OTC AHCHY; 0914 in Hong Kong) slipped 1.1%. KGI Research

Quotable: "The increase in blue-chips short-selling turnover (on Tuesday) showed that investors were cautious. If the blue-chips short-selling turnover ratio keeps rising in the next few trading days, investor should beware of a panic selling." Core Pacific Yamaichi. 9-21-2011

Chinese Company to Watch: "With the highest exposure to the thermal business, Harbin Power Equipment (1133 HK) will likely be the biggest beneficiary of the electricity shortage and the accelerated addition of thermal power capacity in the near future." Haiton Securities. 9-21-2011

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

FOR TODAY'S POST, PLEASE GO TO WWW.EQUITIES.COM

SEPTEMBER 15, 2011 -- HONG KONG RALLY FADES

DAILY FIX
 
Hong Kong Blue Chips: +136, +0.7%, to 19,182, 09-15-11, Hang Seng Index

Chinese Stocks in Hong Kong: +83, +0.8% to 10,052, 09-15-11, HSCE Index

Shanghai Stocks: -0.2%, 2,479, 09-15-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: +5.8 to 390.6. 09-14-2011, Bank of New York Mellon, ADR Index-China

Insight: Hope that Europe would solve its debt crisis fueled a relief rally in Hong Kong, but the rally faded in light trading. Chinese insurers gained. PICC (OTC PPCCY;2388 in Hong Kong) rose 3.4% due to a rise in income. KGI Research

Quotable: "Even the valuation of Hong Kong's stock market traded at low level, global financial market turbulence makes investors’ fear to accumulate shares. There is down side risk in the short term in the Honk Kong stock market."  Haitong Securities. 9-14-2011

Chinese Company to Watch:  Gret Wall Motor (233) "Cheap valuation and new model launches should provide support to stock price." Guoco Capital. 9-14-2011

We expect the defensive sectors, telecom, consumer, and the Hong Kong’s property investment sector, as well as high dividend yield stocks to outperform in the coming month.... ICBC (1398 HK, Outperform), Belle (1880 HK, Outperform) and Zhengtong Auto (1728 HK, Outperform)." CCB International. 9-9-2011.

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN

SEPTEMBER 14, 2011 -- LITTLE CHANGED IN VOLATILE TRADING

DAILY FIX
 
Hong Kong Blue Chips: +15, +0.1%, to 19,045, 09-14-11, Hang Seng Index

Chinese Stocks in Hong Kong: +1, +0.01% to 9,969, 09-14-11, HSCE Index

Shanghai Stocks: +0.6%, 2,485, 09-14-11, Shanghai Composite Index.

Chinese Stocks in the U.S.: +1.4 to 384.8. 09-13-2011, Bank of New York Mellon, ADR Index-China

Insight: Gains in the U.S. and Europe helped Hong Kong open higher, but weak Asian markets pulled Hong Kong blue chips down nearly 400 points around noon. Stocks rebounded to close with a small gain. Investors sold Chinese properties due to worries about declining sales. China Overseas (0688; OTC CAOVY) fell 3.6%.  KGI Research

Quotable: "... (O)verall CPI will remain high as food prices are unlikely to plunge. We raise our 3Q11F CPI forecast from 5.4% YoY to 6.1% YoY and our 2011F CPI forecast, from 4.9% YoY to 5.2% YoY. We look for the government to pursue prudent monetary policy without resorting to further ate or RRR hikes." CCB International. 9-9-2011

Chinese Company to Watch:  We expect the defensive sectors, telecom, consumer, and the Hong Kong’s property investment sector, as well as high dividend yield stocks to outperform in the coming month.... ICBC (1398 HK, Outperform), Belle (1880 HK, Outperform) and Zhengtong Auto (1728 HK, Outperform)." CCB International. 9-9-2011.

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 http://www.adrbnymellon.com/dr_country_profile.jsp?country=CN