BEIJING -- The Hang Seng Index added 0.1% to close at 16,481 in Hong Kong Monday. But the Shanghai Composite Index was in negative territory, losing 0.3% to 1660.In New York Friday, China technology stocks broadly fell along with the declining Nasdaq. Shanda ( SNDA) fell 0.9% to $13.26; The9 ( NCTY) was off 2.5% to $23.39; and China Finance Online ( JRJC) slid 3.1% to $5.29. With most of the big U.S. tech outfits having reported second-quarter earnings, their China counterparts are preparing to follow suit. Lead China search engine Baidu will kick off the second-quarter earnings season on July 26 with portal Sohu following the next day. After the stock market carnage that's ensued from a shift in mobile operator regulatory policies announced early in July, investors can take a kind of solace in knowing at least there isn't much more downside for many wireless names. Amid a rash of earnings warnings from wireless providers, investors now appear to have priced in a nuclear scenario. The biggest wireless player, Tom Online ( TOMO), has lost 28% of its value since the policies were announced on July 6, based on Friday's closing price of $12.25. (The stock also lost ground for a couple of weeks before the announcement on rumors of the pending change). In a note on the upcoming earnings season, Piper Jaffray analyst Safa Rashtchy says he expects China wireless companies to post in-line results, helped by strong demand for search and advertising, though he believes revenue and earnings guidance for the third quarter may be 15% to 30% below current estimates. But Rashtchy adds that the wireless issue probably won't drag the Internet sector down any more than it already has. "In fact, we believe there is likely to be more clear segmentation of the sectors and a shift of investor interest to the ad-based companies like Focus Media ( FMCN), search companies and online services like 51Job ( JOBS)," says Rashtchy in a note. Focus Media will likely post the strongest quarter among China tech plays, while Sohu ( SOHU) should benefit from strong momentum in its ad business, he adds.