China’s Leading Economic Index showed its smallest gain in 5 Months

The Conference Board, a New York-based research group, reported its Leading Economic Index for China rose by only 0.3 percent in April instead of by 1.7 percent as originally estimated. The index shows the smallest gain in five months helping to the biggest sell-off in Chinese stocks in more than a month. The China’s stock market tumbled 4.27 percent hurting US stock market by going down Tuesday along with global stock markets.

AbBank, the last of Chinas’s “big four” state banks, contributed also to send the US stock market down Tuesday after it priced its initial public offering in Shanghai below expectations. AbBank plans a dual listing in Shanghai and Hong Kong, which is estimated to raise more than 23 billion dollars and making it the world's biggest initial public offering. The bank said late Tuesday it had set a price range of 2.52 to 2.68 yuan (37 to 39 US cents) a share for the Shanghai listing, which would raise up to 10.1 billion dollars, lower than the range for the Hong Kong portion of the IPO which has been set at 2.88-3.48 Hong Kong dollars a share (37-44 US cents).

The China 100 stock index slumped 41.57 points or 4.91% to 804.51. The Panda China Large Cap Stock Index lost 50.22 points or 5.08% to 939.15. The Tiger China Small & Mid Cap Stock Index lost 49.82 points or 6.02% to close at 777.18 and the Dragon China Undervalued Stock Index dropped 2.25% to close at 711.57.

Tianyin Pharmaceutical Co., Inc. (TPI) announced yesterday that it will exhibit and promote its flagship product portfolio at the 45th 2010 National New Special Drugs Trade Fair at Beijing National Convention Center from July 8th, till July 10th. Tianyin's portfolio is featured by the patented Ginkgo Mihuan Oral Liquid, Apu Shuangxin, Xuelian Chongcao and others. Tianyin Pharmaceutical shares closed today at 2.90 per share with a gain of 1.75%.

China Armco Metals, Inc. (CNAM) a distributor of imported metal ore and metal recycler with a new state-of-the-art scrap metal recycling facility in China, announced last Tuesday that Armet Renewable Resource Company, Limited, the Company's wholly owned subsidiary has received a certificate of approval from Lianyungang Environmental Protection Bureau for its new state-of-the-art scrap metal recycling facility. “This approval demonstrates our ability to comply with the applicable environmental protection laws at our facility for processing and distributing scrap metal to the steel industry in China." said Mr. Kexuan Yao, CEO and Chairman of China Armco.

Yayi International (YYIN) announced today, net sales for the five months ended March 31, 2010 were approximately $7.0 million, a decrease of 25.0% from the five months ended March 31, 2009. Yayi International said “This decrease was primarily due to the restructuring of our product portfolio. From the end of 2009, we worked together with Trout & Partners to streamline our product portfolio and refine our brand image in order to position and strengthen our "Milk Goat" brand as the premium goat milk brand throughout China. Thereafter, we have restructured our original product portfolio of dozens of products and specifications and refined our marketing strategy during the three months ended October 31, 2009.”

Yayi International added, “As a result, we gradually reduced the production of original products from the end of 2009 in anticipation of the introduction of our new products in January 2010. Our new product portfolio consists of only ten formula products under the "Milk Goat" brand with only one product specification of 600 grams. We suspended our sales efforts in supermarkets during these few months as we transitioned from our original product portfolio to the new one with new packaging, stock-keeping units [SKUs], and new (higher) pricing. Our new product portfolio has only been launched in the market since January 2010. Since our distributor conference, we have signed sales contracts with the distributors with an aggregate expected sales value of approximately $71.4 million (including VAT)”.

Ctrip.com International Ltd. (CTRP) is now trading at 37.61, down$5.16 losing 12.06%. Over the last 52 weeks the stock has ranged from a low of 19.45 to a high of 47.01. CTRP shares were downgraded at Deutsche Bank this morning to Hold from Buy. In a note to investors, Deutsche Bank analysts wrote, "Ctrip's recent stock rally seems largely driven by positive sentiment toward China's tourism market. However, we note that Ctrip will likely face a tougher comp in 2H10 due to the ezTravel consolidation."

American Lorain Corporation (ALN) [2.94, 0.12, -3.92% ] today announced that the company signed a letter of intent ["LOI"] to acquire Shandong Greenpia Foodstuff Co., Ltd., a manufacturer of retail-packaged, Korean-style kimchi cold dishes. On June 28, 2010, International Lorain Holding Inc. and is operating subsidiary, Junan Hongrun Food Co. Ltd, signed a LOI to acquire 100% ownership of Shandong Greenpia Foodstuff Co., Ltd. ("Shandong Greenpia"). The acquisition will include cash and stock offer of $2.1 million in cash and 731,707 shares of American Lorain common stock, respectively. The Company is expected to complete the equity exchange and obtain governmental approval on the acquisition on or before September 30, 2010.

China Agritech, Inc. (CAGC) [10.40, 1.05, -9.17% ] a leading organic compound fertilizer manufacturer and distributor in China, today announced that it has received $10 million as a result of the exercise of common stock warrants held by Carlyle Asia Growth Partners IV, L.P. and CAGP IV Co-Investment, L.P., two affiliates of The Carlyle Group. The Carlyle Group affiliates originally acquired the warrants in connection with the Company's strategic private placement, consummated on October 20, 2009. A total of 1,857,024 newly issued shares of the Company's common stock were issued from the warrant exercise. Carlyle Asia Growth Partners IV, L.P. and CAGP IV Co-Investment, L.P., received 1,705,249 shares and 151,775 shares, respectively, as a result of their exercise of the warrants

Suntech Power Holdings Co., Ltd. (STP), the world's largest producer of crystalline silicon solar panels, today opened a representative office in Montbonnot [Isere], France, to better serve its local partners throughout the region's growing solar industry. Since Suntech established its presence in France in 2008, the French solar market has become one of Suntech's top three markets in Europe. Suntech Power Holdings closed today's trading session at 9.14 per share off 0.34 losing 3.54%.