Chinese equities dropped in New York, led by Yingli Green Energy Holding Co. and SouFun Holdings Ltd., as the lack of a clear result in Italy’s election sapped demand for emerging-market assets.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. slid 1.4 percent to 92.86. Yingli, the world’s biggest silicon-based solar panel maker by capacity, sank to the lowest level this month, while Trina Solar Ltd. retreated 4.3 percent. SouFun, a real estate website owner, dropped after a report that the government will announce property market curbs before a March meeting of new leaders. Web retailer Vipshop Holdings Ltd. surged 17 percent.
The China-US gauge followed the Standard & Poor’s 500 in erasing gains amid concern yesterday’s Italian election resulted in a divided parliament, clouding the outlook for the debt-saddled nation and the euro region. Europe is the biggest trading partner of China, which is the world’s No. 1 exporter. China’s new leaders, under Communist Party General Secretary Xi Jinping, will consider plans this week to revamp the government and bolster the economy, Xinhua News Agency reported Feb. 23.
“The risk-on sentiment reversed as we are seeing uncertainties in the election situation in Italy,” Lei Wang, who helps manage the $27 billion Thornburg International Value Fund in Santa Fe, New Mexico. said by phone. “In China, investors are watching for new economic measures from the government and awaited for the March meeting where they may be announced.”
The iShares FTSE China 25 Index Fund, the largest Chinese exchange-traded fund in the U.S., sank 1.3 percent to $38.04 in New York, after declining 4.4 percent last week. The Standard & Poor’s 500 Index plunged 1.8 percent to 1,487.85.
The Hang Seng China Enterprises Index advanced 0.1 percent to 11,333.98 yesterday after losing 4.5 percent last week, while the Shanghai Composite Index of domestic Chinese shares gained 0.5 percent to 2,325.82, following a 4.9 percent slump last week.
Yingli, based in Baoding of China’s Hebei province, fell 6.6 percent to $2.85, the lowest close since Jan. 30. The company is scheduled to report fourth-quarter results on March 4. Trina Solar, based in Changzhou, China, slid to $4.47 after sinking 8.3 percent last week.
SouFun, the largest real estate information website in China, dropped 4.9 percent to $25.60 in New York, falling the most in four days.
Some Chinese ministries and local governments may announce detailed rules to control property market “soon,” likely before the National People’s Congress in March, the official China Securities Journal reported yesterday, citing an unidentified person.
Hollysys, a Beijing-based automation system maker, lost 4.3 percent, the largest drop since November, to $12.38 on its third day of declines.
Companies on the China-US gauge underperformed the Shanghai stock benchmark yesterday in every sector except consumer stocks, data compiled by Bloomberg showed.
American depositary receipts of Vipshop, a Guangzhou-based web fashion discounter, surged to $28.45, the highest close on record.
Vipshop posted fourth-quarter net income of $6.3 million, from a net loss of $63.5 million a year earlier, the Guangzhou-based company said Feb. 21. The quarterly profit was the first since the company business started in 2008, and compared with a $750,000 mean estimate of two analysts compiled by Bloomberg.
The company also sought to sell as much as $120 million of shares, involving both new shares issuance and sales by existing private investors, its Feb. 21 filing showed.
Some investors may buy Vipshop’s stock after the earnings report as they may not get a chance to invest in the company through its secondary offering announced, Jeff Papp, a senior analyst at Oberweis Asset Management Inc., said Feb. 22 by phone from Lisle, Illinois. “The numbers were so good and the offering is still a small scale.”