By Max Magee
The recent pullback has hit nearly every segment of the market, but more speculative names have been hit the hardest. The dozens of Chinese small caps that now populate the major U.S. exchanges have been regarded by many as risky in any market, but the double whammy of concerns about accounting regularities at these firms and the market's sudden shying away from riskier assets has sent Chinese names plummeting across the board.
In fact, Chinese Indexes are in the four top spots among tickerspy's poorest performing Indexes over the last month.
Worst Performing tickerspy Indexes, 1 month
As we ride out the correction, adventurous investors may be curious to see which names have been pushed down the most, resulting in fear-stoked valuations potentially bottoming out. An investor with any faith in Chinese equities, may want to start with these segments.
Chinese IT Stocks Index: The worst performers over the last month have been iSoftStone Holdings (ISS), VanceInfo Technologies (VIT), and Asiainfo-Linkage (ASIA). IT services provider iSoftStone is down 38%. IT outsourcer VanceInfo has dropped 33%. Provider of telecommunications software solutions Asiainfo has been pulled down 25%.
Chinese Healthcare Stocks Index: The worst performers over the last month have been China-Biotics (CHBT), Tianyin Pharmaceutical (TPI),and China Medical Techs (CMED). Probiotics products producer China-Biotics has endured a steep drop of 70%. Biotech Tianyin has dropped by 38%, and China Medical, a maker of medical devices, is down 35%.
Chinese Solar Stocks Index: The worst performers in this closely watched sector have been China Sunergy (CSUN), Daqo New Energy (DQ), and ReneSola (SOL). Solar cell manufacturer China Sunergy is down 42%. Polysilicon manufacturer Daqo has dropped 35%, and solar wafer manufacturer ReneSola has slipped by 33%.
Chinese Auto Parts Stocks: The worst performers in this segment have been SORL Auto Parts (SORL), China Yuchai Intl (CYD), and China Zenix Auto (ZX). In addition, trading in Wonder Auto Technology (WATG) has been halted for over a month after the firm failed to file a 10-K for 2010 and announced an internal accounting investigation into prior results. China Automotive Systems (CAAS) is also in the process of restating prior financials, though trading there has not been halted. Air brake system manufacturer SORL is down 27%. Diesel engine parts maker China Yuchai is down 26%, as is recent IPO China Zenix.
Note: all percentages cited as of early Tuesday, June 14.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.