China ADRs: Mixed July

July was a volatile month for the U.S. markets. The Dow Jones Industrial Average started the month with some big losses, even closing below 11,000 for the first time in two years on July 15th. But since then, the index has reclaimed some of the losses after a pair of strong rallies, fueled by declining oil price. For the month, the Dow rose a meager 0.25%, the NASDAQ rose 1.42% and the broader S&P 500 index declined just about 1%.

During the month, the Shanghai Composite Index (^SSEC) showed some signs of life, briefly going over the 2,900-point mark early in the month before settling at 2,775.72. That’s a gain of 1.45%. The Hang Seng Index (^HSI) also recovered from the deep drop in June, gaining 2.84% in July.

Chinese stocks traded on U.S. exchanges ended the month mixed. Of the 82 Chinese ADRs, 38 finished the month in the positive territory while the other 44 registered losses.

Among the gainers, VisionChina Media (VISN) led the way with a gain of nearly 58% after the company raised its full year guidance. New Oriental Education (EDU) also saw a nice jump of 20% in its share price, followed by ATA (ATAI) and QiaoXing Mobile Communication (QXM).

Losers of the month include Melco PBL Entertainment (MPEL) -33.69%, ChinaEDU (CEDU) -23.16%, and Giant Interactive (GA) -22.94%.

Name	Symbol	07/31/08 Price	July Return (%)	YTD Return (%)
3SBio	SSRX	9.25	2.10%	-37.84%
51Job	JOBS	14.41	-21.34%	-20.03%
Acorn international	ATV	7.19	3.16%	-22.94%
Actions Semiconductor	ACTS	3.09	-10.43%	-24.26%
Agria	GRO	4.45	3.97%	-52.30%
AirMedia Group	AMCN	14	-3.05%	-37.44%
Aluminum Corp of China	ACH	25.41	-10.97%	-49.82%
APT Satellite	ATS	1.07	-21.33%	-50.23%
ATA*	ATAI	14.97	15.07%	57.58%
Baidu.com	BIDU	347.15	10.92%	-10.94%
China Architectural Engineering	RCH	8.27	-15.35%	-4.39%
China Digital TV	STV	13.38	-3.81%	-50.41%
China Eastern Airlines	CEA	32.75	4.50%	-66.47%
China Finance Online	JRJC	17.34	13.56%	-21.18%
China Grentech	GRRF	4.12	-9.65%	-53.39%
China Life Insurance	LFC	56.59	8.45%	-26.03%
China Medical Tech	CMED	47.92	-3.00%	7.95%
China Mobile	CHL	66.85	-0.15%	-23.05%
China Nepstar	NPD	7.78	-10.16%	-55.75%
China Petro & Chemical	SNP	105.24	13.30%	-28.99%
China Southern Airlines	ZNH	22.45	13.44%	-65.70%
China Sunergy	CSUN	8.66	4.72%	-47.58%
China Techfaith	CNTF	3.64	-13.74%	-37.24%
China Telecom	CHA	54.54	0.28%	-30.14%
China Netcom	CN	60.58	10.97%	1.99%
China Unicom	CHU	20.46	10.48%	-8.66%
ChinaEdu	CEDU	3.65	-23.16%	-57.06%
City Telecom [HK]	CTEL	4.57	0.88%	-19.12%
CNinsure	CISG	13.5	-7.60%	-15.57%
CNOOC	CEO	147.38	-15.07%	-11.98%
Ctrip.com	CTRP	45.09	-1.51%	-21.54%
E-House	EJ	9.49	-16.46%	-60.18%
eLong	LONG	7.24	1.97%	-12.56%
Focus Media	FMCN	29.71	7.18%	-47.70%
Fuqi International	FUQI	8.76	0.00%	5.54%
Giant Interactive	GA	9.34	-22.94%	-28.04%
Global Sources	GSOL	13.82	-8.96%	-51.08%
Guangshen Railway	GSH	24.87	10.98%	-30.22%
Gushan Environmental Energy	GU	12.04	3.61%	28.77%
Home Inns & Hotel	HMIN	15.64	-17.73%	-56.09%
Huaneng Power	HNP	28.17	1.88%	-31.79%
Hurray!	HRAY	3.05	-3.48%	-23.37%
Hutchison Telecomm	HTX	19.6	-7.72%	-13.47%
JA Solar	JASO	15.17	-9.97%	-34.81%
Kongzhong	KONG	3.91	4.83%	-35.80%
Las Vegas Sands	LVS	45.52	-4.05%	-55.83%
LDK Solar	LDK	33.67	-11.11%	-28.38%
Linktone	LTON	1.67	-9.24%	-45.95%
Longtop Financial Tech.	LFT	16.87	1.87%	-28.76%
Melco PBL Entertainment	MPEL	6.18	-33.69%	-46.54%
Mindray Medical	MR	39.95	7.05%	-7.03%
Netease.com	NTES	22.7	4.18%	19.73%
New Oriental Education	EDU	70	19.82%	-13.14%
Ninetowns inter	NINE	2.1	2.44%	-34.17%
Noah Education*	NED	5.56	2.96%	-31.02%
O2Micro International	OIIM	5.13	-22.86%	-55.55%
Perfect World	PWRD	26.46	5.88%	-5.09%
PetroChina	PTR	133.46	3.57%	-23.94%
QiaoXing Mobile Comm.	QXM	5.62	14.00%	-33.49%
Renesola*	SOL	15.77	-8.84%	21.31%
Semiconductor Manufacturing	SMI	2.7	-7.22%	-47.98%
Shanda Interactive	SNDA	25.83	-4.86%	-22.39%
Simcere Pharmaceutical	SCR	12	-4.76%	-13.36%
Sina	SINA	45.23	6.30%	2.10%
Sinopec	SHI	33.04	-3.08%	-45.89%
Sohu.com	SOHU	75.48	7.16%	38.44%
Solarfun Power	SOLF	13.8	-21.14%	-57.73%
Spreadtrum Communications	SPRD	4.76	-4.61%	-61.17%
Suntech Power	STP	33.46	-10.68%	-59.35%
The9	NCTY	22.36	-0.97%	4.34%
Tongjitang Chinese Medicine	TCM	4	-4.08%	-59.39%
Trina Solar	TSL	27.52	-10.18%	-48.85%
UTstarcom	UTSI	4.72	-13.71%	72.26%
VanceInfo Technologies	VIT	9.01	7.01%	0.11%
Vimicro International	VIMC	2.94	3.52%	-21.81%
VisionChina Media	VISN	25.04	57.78%	194.59%
WSP Holdings	WH	7.58	7.82%	-16.70%
Wuxi Pharmatech	WX	18.12	-10.74%	-38.03%
XinHua Finance Media	XFML	2.35	0.43%	-60.83%
Xinyuan Real Estate	XIN	5.61	-7.58%	-60.58%
Yazhou Coal Mining	YZC	17.99	-3.28%	-6.30%
Yingli Green Energy	YGE	16.86	5.90%	-56.39%

*2008 IPO

Two widely held EFTs that mainly invest in China showed differenet results last month. iShares FTSE/Xinhua China 25 Index (FXI) conducted a 3:1 stock split on July 24th, making it more affordable to small investors. The fund gained 2.36% in July while its competitor, PowerShares Gloden Dragon Halter USX China (PGJ), ended the month flat.

Comments

[buyforeclos...:]

what a joke..China aluminum at 21 bucks...YGE at 16..who would have thunk it

2008 Aug 07 08:35 PM

[David White:]

Both LDK and CSIQ report earnings this week (8/11/08-8/15/08). Other solar stocks report the next week such as SOL, STP, and TSL (perhaps others also). After the big down movement recently, I think we can expect an up movement over the next couple of weeks from these stocks. Virtually all should report great earnings. Hopefully LDK will report some positive guidance about their polysilicone plant also. The ones will great multiples seem likely to move up substanitally. This would include LDK, SOL, CSIQ, and TSL. LDK's movement will likely be dependent on its margins and its guidance about the two polysilicone plants it is building. The others should all move up on great results. The highest rated ones should move up more easily. The average analyst ratings for the latter three stocks are: SOL (1.8), CSIQ (2.0), and TSL (2.3). The FPE's are: SOL (6.88), CSIQ (7.40), and TSL (6.23). It looks like there is likely some room for these stocks to move up. They all have low PEG ratios, especially when compared to FSLR (which has moved down after its great earnings). FSLR's PEG ratio is currently 1.29. FSLR's FPE is 37.54 (even after the great earnings). The PEG ratios of the others are: LDK (.34), SOL (.26), CSIQ (.39), and TSL(.28). I think you can see where these other solar stocks may behave differently than FSLR at this point in time. Of course, there is still the possible headwind of oil prices continuing to go down.

2008 Aug 11 08:58 AM

[David White:]

I should have mentioned JASO which also reports this week. It was recently given a new buy recommendation. Also SOL has steadily moved up from a 2 star CAPS rating to a 5 star CAPS rating. It should do well.

2008 Aug 11 09:07 AM