China’s Sina Extends Stock LossesBy Belinda Cao - Jun 10, 2011 4:14 AM GMT+0800
Sina Corp., the owner of China’s third-most visited website and the Twitter-like Weibo service, fell for a fifth day, extending losses after the biggest decline since 2008 yesterday.
Sina slid 5.9 percent to $91.10 at 3:03 p.m. New York time, after plunging 11 percent yesterday to the lowest closing level since March 22. The MSCI China/Information Technology Index has fallen 6.3 percent this month, compared to a 2.1 percent decline on the
benchmark emerging markets index, as concern that a slowdown in global growth also hurts the industry.
Allegations of accounting irregularities at some smaller Chinese companies have eroded demand for larger peers including Sina, Baidu Inc. and Sohu.com Inc. (SOHU), which have lost at least 17 percent of their value since the end of April, after reaching record highs that month, according to Aaron Kessler, an analyst at ThinkEquity LLC in San Francisco. Longtop Financial Technologies Ltd. (LFT), a Hong Kong-based software provider, was sued by an investor alleging the company overstated profit margins and concealed adverse facts last month.
“There’ve been some accounting concerns in the sector, also concerns of a global economic slowdown that have impacted these names,” Kessler said. “Short selling can be part of it as well.”
The SEC has revoked the registrations of eight China-based companies since December, and more than 24 firms have disclosed auditor resignations or accounting problems to the agency since March, SEC Chairman Mary Schapiro wrote in an April 27 letter.
Margin Requirements
Interactive Brokers Group Inc., the electronic market maker and securities firm, raised margin requirements to 100 percent for some Chinese stocks, because of “elevated risk concerns,” according to a statement on its website. Sina and Sohu were among more than 100 Chinese companies on the list. The increase went into effect June 6 in stages and will be completed by the end of this week, the brokerage said.
New-Wave Investment Holding Co., a shareholder of Sina in which Chief Executive Officer Charles Chao is a partner, signed an agreement with a unit of Goldman Sachs Group on June 3 for a “prepaid variable share forward sale,” according to Sina’s regulatory filing yesterday. The transaction allows Goldman to sell up to 1.25 million of Sina’s shares, the filing said.
‘Tracking to Plan’
“Sina’s core business is tracking to plan,” said Eugene Munster, an analyst at Minneapolis-based Piper Jaffray Cos., in a research note yesterday following the filing. He said he expects the company to add updates and advanced features for Sina’s Weibo, or microblogging service, in the next few months.
Munster maintains an “overweight” rating on Sina and a price target of $139, according to his report.
Investors’ short-sale interest in Sina retreated to 8.1 percent of its total outstanding shares as of June 7, from a 13- week high of 9.9 percent the previous day, according to Data Explorers, a New York-based research firm.
Short selling, or selling borrowed shares with the goal of profiting when they fall, surged to a two-year high of 10.6 percent of Sina’s total outstanding shares March 16, according to Data Explorers.
Longtop said in a May 23 statement that its Chief Financial Officer Derek Palaschuk and Deloitte Touche Tohmatsu Ltd. resigned because of “falsity of the company’s financial records in relation to cash at bank and loan balances (and possibly in sales revenue).”
10 10
版主真是敬业，身体不适也记挂着论坛．早日康复！
Allegations of accounting irregularities at some smaller Chinese companies have eroded demand for larger peers including Sina, Baidu Inc. and Sohu.com Inc. (SOHU), which have lost at least 17 percent of their value since the end of April, after reaching record highs that month, according to Aaron Kessler, an analyst at ThinkEquity LLC in San Francisco.
22....................22
Many listed firms on U.S. involve in fraud in financial statements, and they overreport their profits intentionally. Thus these firms' reputation are serioully affected and investors' confidence is eroded, which lead to the decrease in stock price. What is even worse, some firms are halted trading and even delisted. Below is a figure on the firms halted trading or delisted since March.
Sina are facing so many opponents including Tencent,163 and a lot of tiny companys which offer Weibo service.I think they have homogeneous product that no obvious differences among them.Take me for example,i use Tencent's micoblog because when i log in QQ i log in Weibo at the same time.Tencent's QQ has plenty of sticky users,they will or have bcome its microblog users.It maybe the biggest competitor.So what the characteristic of Sina is is the first factor to care of to attract potential users.
30,30
i think Sina is growing quite smoothly and it's Weibo has occupied the largest market share in our country.Perhaps just as mention in the end of the article,there is something wrong with Sina's financial system.
29，29
Well, this paper again tests people's tolerance of Honesty in doing business. I have been thinking a society where people have full trust of each other, loan from the bank without securities, buy a home without mortgage, sounds like an Utopia. Accounting irregularities have always been a problem for companies especially for those want to get rich in a very short time. Mostly, they are driven by greedy, in the film Wall Street 1, the actor said Greed is good while the sequel he put it behind and gave her daughter a hug. Yaoming said on the Youth Forum at 2011 BOAO Forum that he was glad when received the first paycheck in NBA, but gradually, he saw the soaring paycheck of his salary and there was a worried mood on his face. He said people's desire never stops, one shall seriousely think what is the aim of life. As to the accountants of the big or small companies, they may cheat others in order to make money. But at the end, it's the general people who are hurt most. The society I mentioned may never come into being, I just wanna say that Sunlight Is the Best Disinfectant, hope this will work and prevail in the world.
Finally, some words to LZ. You work really hard for the readers, hoping them can improve and grow with you. Health matters in everything, hope you have a good rest and take care, thanks very much for everything you have done for us.
30 27
Despite of the lack of regulation and the accounting fraud, most of the Chinese companies listed abroad are short of the core competence now. Let's review the process of these companies's listing in NYSE or NASDAQ, from which we can easily find out their intentions--raising money. China's stock market is not robust and efficient enough but it does have many protection mechanisms, such as the rising and falling limit, the strict requirements for listing on the growth enterprise market. So that is why those companies didn't choose to go public in China, because they won't raise money from the stock market easily and quickly. The fundamental planes of these internet based companies are not satisfactory as most of them are still in debt or cannot earn profits, they need the money to help them to overcome difficulties and create some new profit models. The original intention is wrong for the companies don't want to bring bonus to their shareholders but instead take their money. They were using the Americans' curiosity to the Chinese concept, but the investors' passion has been fading out, the losses this time is just a warning to these companies, there will be a bigger strike when they are fully revealed.
p.s. 版主要注意身体，你们健康了，论坛才能更有效地运作下去！
Pressure, crisis, oh, poor accountants!
It seems there is no other way than to resign for the accountant firms. Pressure on profits of customers are finally moved onto the accountant firms. If there is no good background, then change the measure method. Is accounting a kind of decoration or a performance evaluator with justice?
This is a huge of bad luck for Chinese companies with in American capital market. more than, it is not only the losses of these companies ,but also the credit of whole Chinese companies. the most problem of the accounting is the accountability.
31,31
Today renren fell 12.75 percent and sina slid 6.06 percent.
Investors are losing confidence in China concept stocks.
Good luck to xunlei.
祝版主早日康复！
扫码加好友，拉您进群
全部版块
我的主页
收藏
