Feb. 5, 2010 (Chinavestor) Chinese shares tumbled in Hong Kong on Friday while their counterparts fared better in Shanghai. The Hang Seng Index tumbled -676.5 points on Friday on top of Thursday's -380 point loss, sending the gauge below 20,000 points for the first time in five months. The sell off was universal, stocks that fell outnumbered those that advanced twenty to one out of the forty four member index. Construction and commodity related stocks suffered the most: Zijin Mining (HKG:2899), the largest Chinese gold miner, dived -6.8% followed by Aluminum Corp. of China (HKG:2600) with a -6.0% drop. Petrochina (HKG:0857) fell -5.8%.
Trading in Shanghai reflected on weak global sentiment. The Shanghai Composite Index fell -55.91 points to 2,939.40 at the close. The gauge has already slipped below the psychologically important 3,000 level earlier the week.
Chinese stocks listed on American exchanges are set to open higher though as payroll numbers were better than expected, setting unemployment below 10%. Index futures bounced back off strongly from earlier losses, suggesting a firm open for Chinese ADRs. Chinese stocks have no momentum and are on the oversold end of the universe. That said, expect oversold China stocks to do well on
Friday.
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