Investing

The Shanghai Carnage

Over the weekend markets had a tremendous fall, not just on the U.S. front but practically all markets are suffering. Monday morning, Dow futures are projected down around 600 points (about 3.8%) while S&P 500 futures are projected down about 70 points (about 3.4%). Across the Pacific, China was suffering as well, if not a little more; the Shanghai composite Index was down 8.5% while the Hang Seng Index (Hong Kong) was down 5.2%.

24/7 Wall St. has taken a few key exchange traded funds and stocks from the Chinese markets that are representative of this drop. At the same time, we have given some background and the recent trading history for these equities.

Harvest CSI 300 China A-Shares ETF (NYSEMKT: ASHR) is a fund that is comprised of the 300 largest and most liquid stocks in the China A-Share market. The fund normally invests at least 80% of its total assets in securities of issuers that comprise this underlying index. Shares closed Friday down 4.9%, at $34.87 in its 52-week trading range of $24.26 to $55.19. In early trading indications on Monday, shares were down 14.1% at $29.95.

iShares China Large-Cap (NYSEMKT: FXI) seeks to track the investment results of an index composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange. It seeks to track the investment results of the FTSE China 50 Index, which is designed to track the performance of the largest companies in the Chinese equity market that are available to international investors. This ETF saw its shares drop 2.5% on Friday to $36.56, within its 52-week trading range of $36.43 to $52.85. In early trading indications Monday, it was down an additional 6.7% at $34.12.

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Baidu Inc. (NYSE: BIDU) provides Internet search services in China and internationally. It offers Chinese language search platform on its Baidu.com website that enables users to find relevant information online, including Web pages, news, images, documents and multimedia files through links provided on its website. Think the Google — in terms of search — of China. American depository shares (ADSs) of Baidu closed Friday down 2.9%, at $152.91 in their 52-week range of $152.76 to $251.99. In early trading indications Monday, ADSs were down an additional 8.5% at $139.91.

iShares MSCI Hong Kong (NYSEMKT: EWH) tracks the investment results of the MSCI Hong Kong Index. It may include large-, mid- or small-capitalization companies, and components primarily include consumer discretionary, financials and utilities companies. This ETF saw its shares drop 2.3% on Friday to $19.46, within its 52-week range of $19.45 to $24.65. In Monday’s early trading indications, it was down an additional 6.4% at $18.22.

China Mobile Ltd. (NYSE: CHL) provides mobile telecommunications and related services in mainland China and Hong Kong. The company also offers data services, such as SMS, including subscriber-to-subscriber messages, short messages and others, as well as MMS. Shares of China Mobile closed Friday up 0.2% to $62.87. Its 52-week trading range is $56.03 to $75.52. In early trading indications, shares were down 7.7% at $58.00. The stock has a consensus analyst price target of $83.01.

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