Chinese ADR's Get Swallowed By The Dragon
This morning, all of the leading Chinese ADR's are coming under sharp selling pressure. Sohu.com Inc (NASDAQ:SOHU); a leading the Chinese ADR, is trading down $9.43 to $53.62 a share. The company reported earning that were well below analyst expectations. Many investors are now thinking that other leading Chinese ADR's will report weaker than expected earnings going forward. SOHU stock will have intra-day support around the $52.75, and $48.90 levels.
Other leading Chinese ADR's that are declining lower in sympathy to SOHU stock include Sina Corp (NASDAQ:SINA), Baidu Inc (NASDAQ:BIDU), and China Mobile Ltd (NYSE:CHL). Last night, the important and highly followed Shanghai Index (China) finished the session basically flat. If there is any slowdown in the Chinese economy all of these leading stocks will come under further selling pressure over the next few weeks.