This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China Stocks End Mixed

BEIJING -- Monday kicked off on a slightly down note in Hong Kong, with the Hang Seng Index losing 0.5% to 15,769. But the Shanghai Composite Index managed to shake off news of new monetary measures in China to add 0.8%, closing at 1586.

In Friday New York trading, China shares were mixed to slightly down. Tom Online (TOMO) fell 1.55% to $19, and Sina (SINA) was off 3.3% to $22.91. Gainers included Ctrip (CTRP), up 0.7% to $49.07, and Elong (LONG), advancing 1% to $14.18.

Over the past week, a raft of new data showed economic growth in China careening along at too rapid a clip, prompting much concern about how Beijing would respond.

The wait didn't take long. After the Asian markets closed Friday, China's central bank announced it would hike banks' reserve requirement ratio from 7.5% to 8%, starting July 5.

But in a quieter move with potentially far greater long-term impact, mainland policymakers have also begun allowing the Chinese currency to appreciate noticeably against the dollar. Friday, the dollar fell to the lowest level against the yuan since Beijing undertook a one-off, 2.1% upward currency revaluation last summer.

Authorities allowed the yuan to open below 8 to the dollar -- a recent psychological benchmark -- last Thursday and Friday. Viewed another way, at its low in Friday trading, the dollar could have bought only 7.9970 yuan.

"The drop below 8 sends a very strong message that the government will allow the currency to appreciate. Going forward, we believe the currency will appreciate faster," said Qing Wang, senior currency strategist for Bank of America in Hong Kong.

In late Monday trading, the dollar was at 8.0060 yuan.

Granted, nobody expects any huge moves upward in the future. "It's going to be a gradual and smooth process, with appreciation accelerating instead of another revaluation," said one analyst in Hong Kong.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs