March 17, 2010 (Chinavestor) This doesn't get any better - "Earnings, earnings, and earnings... when it comes to China stock movers." we wrote in the overbought/oversold report this morning. Earnings moved Fuqi International (NASDAQ:FUQI) big time - the stock lost -36.0% by noon today! Another stock on the move is KongZhong Corp. (NASDAQ:KONG), this time on the positive. Shares of the company are trading +19.8% higher as earnings rolled out.
Let's start with the good news: shares of KongZhong Corp. (NASDAQ:KONG) advanced on better-than-expected earnings. The huge underlying volume suggests the rally is well founded and will stick.
China Digital TV Holdings (NYSE:STV) has been a highly volatile stock in the past that the overbought / oversold monitor recorded. Today's big advance is technical in nature after five days of decline.
A lesser know, small cap, low volume China play, Qiao Xing Mobile (NYSE:QXM) advanced +4.4% so far today. This rally is the third in a row but is part of a larger technical correction. Shares of the company has lost over 50% of their value since last November and the three days strength is more of a technical correction than a well founded, long term rally. Low volume today suggests the bounce back won't last for long.
Fuqi International (NASDAQ:FUQI) is screaming off the chart above as the worst stock of the day among U.S. and Asian listed Chinese stocks. The -36.0% drop following earnings announcement is a stark reminder that small cap Chinese stocks are risky investments.
Shares of China Sky One Medical (NASDAQ:CSKI) lost -9.0% by noon as earnings disappointed. A significant increase in volume suggests the stock will not recover anytime soon...
Shares of Chinese car part makers tumbled today. China Automotive Systems (NASDAQ:CAAS) and Tongxin International (NASDAQ:TXIC) are among the five worst performers today, highlighting the weakness of the sector.
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