China Internet Stocks Pressured as Q2 Results Expected to Show Big Losses (SINA) (RENN) (SOHU)
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Chinese Internet stocks are seeing pressure Monday amid reports second-quarter earnings results will come in worse than expected.
Bloomberg cited Chinese shipping giant China Cosco Holdings, which announced it expects a wider first-half loss when compared with the same period in 2011.
Much of the recent pressure stems from Europe, which is still one of China's largest customers. Recent announcements in support of the euro by ECB President Draghi, as well as German Chancellor Merkel and French President Hallande, are encouraging, but many analysts in China say more concrete measures need to be taken in order for confidence to return to the Chinese markets.
In addition to Cosco, steelmakers have seen profit in the first half drop 96 percent from the same period last year; central government-run companies have seen a 16 percent decline overall.
AsiaInfo-Linkage (Nasdaq: ASIA) is expected to report a 35 percent drop in adjusted earnings later Monday, while peer Ctrip.com Int'l (Nasdaq: CTRP) reported second-quarter earnings of 13 cents per share last week, down 52 percent from the prior year.
The only real bright spot for Chinese Internet companies has been Baidu (Nasdaq: BIDU), which saw earnings rise 72 percent to $1.24 per share.
The Shanghai Index fell 0.9 percent Monday and is down 5.2 percent through July, with only one day of trading left in the month.
The news is also hitting the aforementioned Internet segment. Lower on the session are shares of SINA Corp. (Nasdaq: SINA), Youku.com (NYSE: YOKU), Baidu (Nasdaq: BIDU), Sohu.com (Nasdaq: SOHU), Renren (NYSE: RENN), and MeetMe (AMEX: MEET).
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Bloomberg cited Chinese shipping giant China Cosco Holdings, which announced it expects a wider first-half loss when compared with the same period in 2011.
Much of the recent pressure stems from Europe, which is still one of China's largest customers. Recent announcements in support of the euro by ECB President Draghi, as well as German Chancellor Merkel and French President Hallande, are encouraging, but many analysts in China say more concrete measures need to be taken in order for confidence to return to the Chinese markets.
In addition to Cosco, steelmakers have seen profit in the first half drop 96 percent from the same period last year; central government-run companies have seen a 16 percent decline overall.
AsiaInfo-Linkage (Nasdaq: ASIA) is expected to report a 35 percent drop in adjusted earnings later Monday, while peer Ctrip.com Int'l (Nasdaq: CTRP) reported second-quarter earnings of 13 cents per share last week, down 52 percent from the prior year.
The only real bright spot for Chinese Internet companies has been Baidu (Nasdaq: BIDU), which saw earnings rise 72 percent to $1.24 per share.
The Shanghai Index fell 0.9 percent Monday and is down 5.2 percent through July, with only one day of trading left in the month.
The news is also hitting the aforementioned Internet segment. Lower on the session are shares of SINA Corp. (Nasdaq: SINA), Youku.com (NYSE: YOKU), Baidu (Nasdaq: BIDU), Sohu.com (Nasdaq: SOHU), Renren (NYSE: RENN), and MeetMe (AMEX: MEET).
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