This Day On The Street
Continue to site
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

China Shares Close Mixed

BEIJING -- Stocks were mixed overnight in China, as markets in Hong Kong slipped 0.7% to 16,490, while in Shanghai, buyers sent equities higher by 0.7% to 1746.

In New York trading Monday, wireless services outfits were in the red again. Linktone (LTON) lost 12.7% to $4.49 after it said China Mobile's (CHL) new regulatory policies will weigh on its sales and earnings for the rest of this year.

Linktone echoed the warning issued by many of its peers over the past two days, saying the changes in subscriber and billing practices will likely result in it adding fewer new users. The company also predicted it will suffer a higher cancellation rate and spend more money to acquire subscribers.

The mobile operators tasked with carrying out the new rules fared better, with China Mobile up 1.9% to $29.34 and China Unicom (CHU - Get Report) gaining 1.3% to $9.12.

Meanwhile, on the economic front, China's government said Monday that it posted a record monthly trade surplus of $14.5 billion for June. Exports rose 23.3% from a year ago, higher than the consensus expectation for 22.6%, while import growth of 18.9% was slightly below estimates of 21%.

ING economist Tim Condon pointed out the news comes just ahead of the one-year anniversary of Beijing's decision to allow a one-time, 2.1% upward increase in the valuation of the yuan.

Against that backdrop, Condon said in a research note that "we expect the strong export growth and record trade surplus to fuel another round of China-bashing on the exchange rate." U.S. politicians have complained the revaluation didn't go nearly far enough, especially given that the yuan has seen only meager appreciation since then. A weak yuan relative to the dollar makes Chinese exports cheaper for U.S. consumers, thus fueling the U.S. trade deficit with China.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CHU $11.57 0.78%
CHL $56.47 0.21%
LTON $1.02 -15.70%
AAPL $93.21 -0.44%
FB $118.20 0.12%


Chart of I:DJI
DOW 17,697.25 +45.99 0.26%
S&P 500 2,055.71 +4.59 0.22%
NASDAQ 4,733.79 +8.1510 0.17%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs