By Chris Sester From Wall Street Observer

China stocks take another steep dive: YY Inc (ADR) (NASDAQ:YY), Qunar Cayman Islands Ltd (NASDAQ:QUNR), 58.com Inc (ADR) (NYSE:WUBA)

Chinese equities were walloped on Monday as smaller stocks fell nearly 7 per cent following some mixed data on the economy.

The benchmark Shanghai Composite shed 2.7 per cent and the tech-heavy Shenzhen Composite fell 6.7 per cent. For both indices this was the worst session since August 25.

Losses were even steeper in late afternoon trading but in the final 40 minutes larger stocks staged a rally, led by financials. The top 50 stocks in Shanghai managed to finish the day with a 1.5 per cent gain, swinging up 4.2 per cent in late trading. The CSI 500, a collection of smaller cap stocks, finished the day down 6.6 per cent.

There was huge variance between sectors: financials rose 0.1 per cent — the only sector to gain — while consumer discretionary stocks fell 6.9 per cent and IT stocks tumbled 8.7 per cent.

Of the 1,114 stocks in Shanghai, only 73 rose. These included ICBC, the world’s biggest bank by assets, and other state-backed banks including Bank of China and China Communications Construction. By contrast, more than 440 fell between 9.9 per cent and 10 per cent, the downward daily limit.

New data has been scarce but over the weekend China released numbers showing retail sales rose to a 10.8 per cent yearly pace in August, beating forecasts, That was offset by industrial output missing forecasts and growing just 6.1 per cent.

The mixed data is decent news for the economy — indeed, stocks rose at the open — but it might not persuade policy-makers to take imminent action to support the economy. For a market less focused on valuations and more on the direction of policy, that alone could account for the sell-off.

The Australian dollar, often seen as a proxy for bets on China, was up 0.6 per cent for a sixth straight gain early in the day. As Chinese stocks tumbled, the Aussie lost all the gains and turned negative for the session.

Shares of YY Inc (ADR) (NASDAQ:YY) traded up +5.45% during last trading session on a U.S. exchange, closing at $56.51. The share price of this stock traded recently in a range of $53.10 to $58.41. The company now has a market value of $3.09 billion. The stock, after recent close, is -3.26% below their SMA 50 and -38.71% below the 52-week high. The worst hit in its 52 week range is $50.52 per share, with $91.20 as its 52 week best price. Its latest closing price has a distance of +0.18% from SMA20 and is -10.75% below than SMA200.

Qunar Cayman Islands Ltd (NASDAQ:QUNR) closed U.S. trading at $31.05, up +0.71 points or +2.34% from previous close. The year-to-date (YTD) performance reflected a +9.22% above last year. During the past month the stock loses -19.33%, bringing three-month performance to -36.23% and six-month performance to +8.91%. If we take a look on its volatility, 4.57% was seen in a week and for the month it was 7.29%.

For more on this story go to http://www.wsobserver.com/china-stocks-take-another-steep-dive-yy-inc-adr-nasdaqyy-qunar-cayman-islands-ltd-nasdaqqunr-58-com-inc-adr-nysewuba/7234057/#LwcIbQIS0Z2dTZ4Y.99

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