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China stocks were missing direction on Wednesday in Asia. The Shanghai Composite Index (SHA:000001) rose a mere 3.8 points or 0.2% while the Hang Seng Index (INDEXHANGSENG:.HSI) slipped 110.5 points or 0.6%. Most stocks succumbed to profit taking in Hong Kong where stocks that fell outnumbered those that advanced three to one among 42 components of the Hang Seng Index (INDEXHANGSENG:.HSI). Similarly to the broad index, the composite of mainland China stocks listed in Hong Kong experienced a broad sell-off. Only five out of 25 components of the Xinhua 25 China Index managed to eke out some gains, boding ill for the iShares FTSE/Xinhua China 25 Index (NYSE:FXI).

The good news is that there are no overbought China stock extremes today. Seaspan Corp. (NYSE:SSW) is trading closest to theoretical highs but is far from being overbought. ChinaCast Education (NASDAQ:CAST), LDK Solar (NYSE:LDK) and Fushi Copperweld (NASDAQ:FSIN) have solid momentum from last week but are volatile stocks by nature. China XD Plastics (NASDAQ:CXDC) is another interesting stock to follow lately from the overbought screen. Stocks of interest on the oversold screen include Jiayuan.com International Ltd. (NASDAQ:DATE), E-House Holdings (NYSE:EJ), Baidu.com Inc. (NASDAQ:BIDU) and Sina Corp. (NASDAQ:SINA).

Explosive LDK Solar (NYSE:LDK) rocked the boat on Thursday again but is not considered overbought yet. Stocks with solid momentum on the overbought screen include Seaspan Corp. (NYSE:SSW), China XD Plastics (NASDAQ:CXDC), and Sinopec Corp. (NYSE:SNP). These stocks are trading above thier 50-DMA and 200-DMA as well. Huaneng Power Int. (NYSE:HNP)is supported by strong money flows.

China stocks advanced in Asia on Friday following better than expected economic news from the U.S. The Hang Seng Index (INDEXHANGSENG:.HSI) rose 250.9 points or 1.3% while the Shanghai Composite Index (SHA:000001) bounced off 52 week lows. The rally was universal among industry leaders in Hong Kong for all but one component of the Xinhua 25 China Index rose. This bodes well for the most liquid Chinese ETF, the iShares FTSE/Xinhua China 25 Index (NYSE:FXI). Yanzhou Coal Mining ((HKG:1171) and China Life Insurance (HKG:2628) were among the best performing China stocks in Hong Kong before the Christmas break. The Hong Kong Stock Exchange will be closed December 26 and 27 and will resume trading on December 28, Wednesday.