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    12 Signs and 158 Reasons Investors Should Avoid Chinese RTO Stocks

    Tue, 08/31/2010 - 04:03 EDT - Seeking Alpha
    • Alfred Little
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    Alfred Little submits:In an article titled "Beware this Chinese Export" featured in this week's Barron's magazine, author Leslie Norton analyzed 158 Chinese companies that obtained their U.S. share listing via reverse merger and discovered that the median company’s share price underperformed the Halter USX CHINA Index by an astonishing 75% in the first three years of trading, resulting in large losses for investors in these companies. The USX CHINA index itself is down 15% in the three years ending August 27, 2010. Losses to reverse merger investors are truly staggering, begging the question why anyone invests in them at all. Fortunately, Leslie goes into great detail explaining all the problems with these investments. Her analysis is in fact very similar to my own.Complete Story »

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    Related

    • The Myth of Underperforming Chinese Reverse Mergers

      Rames El Desouki submits:Two weeks ago, Barron's printed a feature article titled "Beware This Chinese Export", written by Bill Alpert and Leslie P. Norton. It was labeled as a "study" and subtitled "Chinese Reverse-Merger Stocks Lag Key Indexes." The tone of the article was very negative about anything related to U.S.-listed Chinese stocks that went public via reverse mergers.

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    • China: Betting Big on the Downside With CZI

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    • When Is The Right Time To Buy China ETFs?

      By Sam Subramanian: China's economic growth in the past decade has been phenomenal. The Chinese economy has grown 316%, dwarfing America's 43% expansion. The 2008 financial crisis has dented the economies of several nations including the U.S., but not China's. Essentially untouched by the 2008 financial crisis, China's economy has grown at close to double-digit rates in 2009, 2010 and 2011. How have China ETFs Fared

    • China Internet Stocks: October Review

      By Xiaofan Zhang: China Internet stocks staged a strong and broad-based comeback in October: The 50 stocks in the industry surged 16.2% on average (Table 1), outperforming the monthly gains of NASDAQ Composite (+11.1%), BNY Mellon China ADR Index (+9.2%), and Halter USX China Index (+13.9%). The advance/decline ratio for the industry improved to 42/8 in October from 0/49 in September and 11/38 in August.

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    • A Performance Review Of China Internet Stocks For August

      By Xiaofan Zhang: After rebounding 4.6% in July, China Internet stocks plunged 11.9% on average in August (Table 1), underperforming the monthly returns of NASDAQ Composite (QQQ) (-6.4%), the BNY Mellon China ADR Index (-7.6%), and the Halter USX China Index (-8.5%). Such performance resumed the industry's latest downtrend, which started from May (-11.6%) and June (-9.3%). During the U.S.

    • How China Internet Stocks Performed in July

      By Xiaofan Zhang: China Internet stocks rose 4.6% on average in July (Table 1), outperforming the monthly returns of NASDAQ (QQQ) Composite (-0.62%), the BNY Mellon China ADR Index (+0.61%), and the Halter USX China Index (+0.89%). Such performance came after the group plunged 11.6% in May and 9.3% in June. Below are the three key themes for China Internet stocks' performance in July.

    • China's Year of the Rabbit Is Here - How to Trade It With ETFs

      Moby Waller submits:February 3, 2011, is the Chinese New Year, which beyond China is also celebrated in many countries with significant Chinese populations such as Hong Kong, Indonesia, Malaysia, Phillipines, Singapore, Taiwan, Thailand and Macau. The dating of the Chinese calendar may go back as far as 2500 BC or more. There are 12 animal-related signs for any given year (as you may have seen at Chinese restaurants), and this new one is the Year of the Rabbit.

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