Thursday's Asia ADR Recap: PetroChina

According to the Financial Times, Spain-based Telefonica (TEF Quote) hopes to acquire a 10% stake in Chinese wireless company China Unicom (CHU Quote) to capitalize on the reorganization of the state-run telecommunication sector. Telefonica already controls a 7.2% stake in Chinese fixed-line carrier China Netcom (CN Quote), which is set to be acquired by China Unicom under the reorganization plan. American depositary shares of China Unicom, which trade on the NYSE, moved lower by 2.3% to $18.97, and ADR shares of Telefonica dropped 1% to $80.39.

Chinese oil refiner ADRs soared in U.S. trading after news broke that the Chinese government will hike the price of gasoline and diesel fuel by at least 17% in an effort to slow down the country's growing appetite for energy. China Petroleum & Chemical (SNP Quote) surged 7.9% to $112.64; PetroChina (PTR Quote) rose 4.4% to $140.49; and Sinopec Shanghai Petrochemical (SHI Quote) added 2.9% to $42.03.

The government fuel-price hike announcement overshadowed Goldman Sachs' price target cut of PetroChina and China Petroleum & Chemical. Goldman said refining losses for both companies will expand due to surging global oil prices. The investment bank cut its price target on China Petroleum by 15% and for PetroChina by 4.7%.

China Eastern Airlines (CEA Quote) and China Southern Airlines (ZNH Quote) announced they will operate weekend chartered flights to Taiwan. China Eastern said it will offer three round-trip flights from Shanghai and one from Nanjing to Taipei every week. China Southern said it will sign a strategic partnership with Taiwan-based China Airlines and offer flights across the Taiwan Strait. Shares of China Eastern dove 3.9% to $33.25, and shares of China Southern lost 3.1% to $23.42.