(Update) Halter US China Index closed down 7.89% and FXI down 7.55%. China Mobile (CHL), a major component of both index, is down 7.79% today.
FXI (FTSE Xinhua 25) dropped 7.23% as of now 11:27 AM US CST.
Halter US China Index (web site), which is more broad based Chinese ADRs traded in the US (although PetroChina, China Mobile has a bigger weight), dropped 7%.
And last but not least, trader818 China ADR index, dropped 8.4%.
Sounds a lot like the Feb 28, 2007, except the bear comes early this year. Although the general US market also dropped a lot, this Chinese drop seems a bit excessive. I unloaded some LFT today (yes I decided to take the bite, rather than hanging there dead). I think going forward small cap Chinese ADRs, especially newly listed IPOs, will perform wose than the large cap ones. Just like the “2-8” and “8-2” phenomena in China domestic market, when things are uncertain, stay with the big guys 🙂
By the way, I added China Mobile (CHL).
Short ideas: AAPL and EDU. Sorry Steve and Michael (this is not personal). EDU reported earning today, the results and stock actions reminded me of CROX on Nov. 1, 2007 🙁
Steve is doing keynote at MacWorld today (Apple is due to report on Jan 20).