China stocks on hold before earnings in U.S. on Jan. 18

January 18, 2011 （Chinavestor） China stocks traded sideways on Tuesday ahead of the U.S. open. Earnings season will kick in high gear in the U.S. sending global investors to the sidelines earlier the week. The Hang Seng Index （INDEXHANGSENG:.HSI） shed 3.0 points or 0.0% while the Shanghai Composite Index （SHA:000001） eked out a small, 2.5 points or 0.1% gain.

Aluminum Corp. of China （HKG:2600）, the third largest aluminum maker, was the best performing component of the Hang Seng Index （INDXHANGANEG:.HSI） after reporting preliminary profit estimates. The company said it would return to profitability for 2010 from losses a year earlier. China Telecom （HKG:0726）, the fastest growing Chinese mobile carrier, rose 4.7 percent followed closely by another NYSE cross-listed China stock, Petrochina Co. Ltd. （HKG:0857）.

Airliners were mixed; China Southern Airlines （HKG:1055） fell one of the most among components of the Hang Seng Index （INDEXHANGSENG:.HSI）, but China Eastern Airlines （HKG:0670） and Air China （HKG:0753） advanced 0.3percent and 1.0 percent, respectively. China Eastern Airlines （NYSE:CEA）, the second largest Chinese carrier, estimated a 15 times increase in profits for 2010.

Traders were cautious in Shanghai as well. NYSE cross-listed A-shares of Aluminum Corp. of China （SHA:601600） and Sinopec （SHA:600028） were among the best performing components of the Shanghai Composite Index （SHA:000001）. But oil producers fell as price of oil hit a temporary ceiling. Petrcochina Co. Ltd. （SHA:601857）, China's largest oil producer, fell 1.4 percent