Volatile Market Weighs Heavily on High Risk Chinese Internet Stocks
October 05 2011 - 7:16AM
Marketwired
Chinese internet stocks took a sizeable hit following the Federal
Reserve's "Operation Twist" announcement. While most Chinese tech
firms have reaffirmed their guidances despite the economic
downturn, Jonathan Masse, a money manager at Walnut Creek,
California-based Baochuan Capital Management LLC, which invests in
Chinese stocks and options, explains that "when the market gets
spooked, there is a flight to lower beta, lower risk stocks.
Internet stocks are assumed to be high-beta." The Bedford Report
examines the outlook for companies in China's Internet Sector and
provides stock research on Renren, Inc. (NYSE: RENN) and Youku.com,
Inc. (NYSE: YOKU). Access to the full company reports can be found
at:
www.bedfordreport.com/RENN
www.bedfordreport.com/YOKU
Indeed growth remains intact for most Chinese tech companies. A
recent study from the consultancy McKinsey & Co. estimated that
6 million people go online for the first time in the country every
month, and predicted the Chinese internet population will grow to
750 million in 2015. According to the China Internet Network
Information Center, China has the world's biggest population of
internet users with more than 500 million.
The Bedford Report releases investment research on the Chinese
Internet Industry so investors can stay ahead of the crowd and make
the best investment decisions to maximize their returns. Take a few
minutes to register with us free at www.bedfordreport.com and get
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Heightened regulation could slow growth, however. China's
Commerce Minister recently said the government was looking to
regulate corporate investment structures that enable domestic
companies to list on overseas markets, as China looks to reign in
variable structures that allow foreign investors to tap into cash
flow from Chinese companies where investment is restricted.
In addition, the Chinese government has taken steps of late to
control Twitter-like microblogging in the country. Beijing's
Communist Party chief visited Sina Corporation headquarters and
called for internet companies to stop the spread of harmful
information, which is seen as a threat to the government's control.
China's microblogging market has soared more than 200 percent year
on year at the end of the first half of 2011. Sina Corporation says
that the company has in excess of 140 million users as of June 30,
2011.
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that offer growth opportunities, value, and strong potential
return. We strive to provide the most up-to-date market activities.
We constantly create research reports and newsletters for our
members. The Bedford Report has not been compensated by any of the
above-mentioned publicly traded companies. The Bedford Report is
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that all investment entails inherent risks. Please view the full
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