Friday's Asia ADR Recap

Retail investors did receive some hope for government involvement in the troubled equity markets after the National Business Daily published a front-page story with the title "Saving the market would be saving China's economy."

"The Chinese government is likely to take measures, including cutting the tax on stock trading or applying more stringent criteria for initial public offerings and share placements, to prop up stocks," said Jing Ulrich, chairwoman of China equities at JPMorgan Chase.

China's Shanghai Composite Index advanced 168.65 points, or 4.9%, to 3,580.15 while Hong Kong's Hang Seng Index roared higher by 621.73 points, or 2.7%, to 23.285.95.

In the Chinese wireless sector, China Mobile CHL announced it will launch commercial trials for 3G technology-based mobile phone services based off the homegrown TD-SCDMA standard. The trials are set to launch in Beijing, Shanghai, Tianjin, Shenyang, Guangzhou, Shenzhen, Xiamen and Qinhuangdao. American depositary shares of CHL traded higher by 0.7% to $74.80.

Lazard Capital Markets started coverage on Chinese alternative energy company JA Solar JASO with a buy rating and a price target of $26 a share. "JA Solar is one of the best-positioned China-based manufacturers of primarily monocrystalline solar cells. The company has rapid expansion plans, an excellent silicon position, low processing costs, and a global reputation," Lazard analyst Sanjay Shrestha said. Shares of JA Solar finished up 6% to $19.

Lazard also slapped a hold rating on Chinese solar company Solarfun Power SOLF and raised its price target on another Chinese solar firm, ReneSola SOL, from $12 to $18 and reiterated a buy rating. ADR shares of Solarfun fell 5.8% to $12.59, and ReneSola lost 11.3% to $10.83.

Citi started coverage on Chinese online game developer Giant Interactive Group GA with a buy rating and a price target of $14. "Since its November IPO however, the shares have traded down along with the overall market and broader China Online Gaming sector. We believe the risk/reward at current levels is highly favorable given Giant's nearly $800 million in cash and the continuing strong performance of its flagship game ZT," a Citi analyst said. ADR shares of Giant rose 11% to $11.50.

China's largest Internet search engine Baidu.com BIDU is rumored to have started an open beta test for its instant messenger service Baidu Hi. The company opened up the beta to Internet experts, media groups and Baidu.com users, according to tradingmarkets.com. ADR shares of Baidu finished higher by 4.1% to $247.21.

Chinese oil and gas stocks were in play Friday after Cnooc CEO reported second-half net income that rose 14% from the previous year. Shares of CEO closed higher by 4.5% to $150.42; China Petroleum & Chemical SNP, finished higher by 6% at $87.18; and PetroChina PTR, rose 5.2% to $128.03.

Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

For more on Asia, check out Daniel Harrison's coverage at TheStreet.com