Tuesday's Asia ADR Recap: China Mobile

Goldman Sachs downgraded shares of China Mobile (CHL Quote) from neutral to sell, cut its price target and placed the stock on its conviction sell list. Goldman analyst Helen Zhu said in a note to clients, "China Mobile looks to be headed into a uniquely unfavorable regulatory regime." Shares of China Mobile slid 5.4% to $74.05.

Shares of Giant Interactive Group (GA Quote) jumped 5% after the Chinese online gaming company announced it has resumed full and normal operation of all game servers, following observance of a three-day mourning period for the victims of the recent major earthquake that rocked China. The company also reaffirmed its second-quarter revenue guidance of RMB495 million to RMB505 million. Shares of Giant added 66 cents to $13.46.

Elsewhere in the Chinese online gaming sector, The9 Limited (NCTY Quote) surged 6.6% to $24.96; Perfect World (PWRD Quote) moved up 6.1% to $25.32; Shanda Interactive (SNDA Quote) added 4.2% to $35.30; and Sohu.com (SOHU Quote) tacked on 1.3% to $77.72.

Merrill Lynch downgraded shares of ATA (ATAI Quote), a provider of computer-based testing services in China, to sell from buy following a 57% run-up in the stock during the past two weeks. Merrill thinks investors should lock in profits with the stock trading at 26 times its 2009 earnings. Shares of ATA fell sharply by 10% to $15.35.

Suntech Power (STP Quote), a Chinese solar energy company, announced it has purchased a minority stake in Chinese manufacturer of solar wafers Shunda Holdings from private equity firm Actis and Waichun Investment Fund for $98.9 million. Suntech also said it inked a 13-year silicon wafer supply contract with a subsidiary of Shunda. Under the terms of the deal, Suntech will receive specified annual volumes of silicon wafers with a total volume of around 7 gigawatts from 2008 to 2020. Shares of Suntech dropped 1.8% to $46.02.

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.