By Max Magee
While the market was positive last week for the first time in six weeks, speculative segments continue to struggle, weighed on by economic concerns, and, for Chinese names especially, ongoing concerns about accounting irregularities.
Positive economic data has lit a fire under Chinese equities. Regardless of whether the data is legit or fabricated, accelerated price action for Chinese stocks makes now a good time for a review of the key Internet stocks operating in China.
Chinese Internet stocks combine two of the of the most popular stories for equities post-crisis:
Macquarie Private Wealth released its 2013 global outlook on Wednesday, predicting U.S. stocks would outperform Canadian stocks again this year and declaring the “resource price boom over.”
The S&P/TSX Composite index has lagged behind the S&P 500 two years in a row now. In 2012, the index rose 7.2%, but trailed the S&P 500′s much more impressive 16% climb. Macquarie expects the gap to continue in 2013 as resource prices hold steady this year.
Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.Since the middle of May I am on record for being bullish on Chinese stocks. One of the top Chinese managers, Liu Tang, chairwoman of Atlantis Investment Management echoed my bullish view in an interview with Bloomberg on Monday, July 11.
Article written by Prieur du Plessis, editor of the Investment Postcards from Cape Town blog.China’s CFLP manufacturing PMI dropped to 50.9 in June from 52.0 in May. The PMI was in line with what I expected on the basis of the seasonal pattern and what the stock-to-orders ratios pointed to in the previous month’s PMI.
Xiaofan Zhang submits: Chinese Internet stocks ended March on a positive note: On average, the 42 Chinese Internet stocks (Table 1) rose 0.7% in the month. At the segment level, Online Travel, Online Video, Online Games, and Online Advertising stocks had positive average performance, while E-Commerce stocks continued to struggle. Below is my detailed analysis of each segment:
Bull in the China Market submits: In April 2008, I recommended a portfolio of nine Chinese smallcap stocks (see “Bullish on Chinese Microcaps”). If you had invested an equal amount of money in each of these stocks, you would have realized a 39% gain during this period. In comparison, the S&P 500 declined 18% over the same time frame.
Risk assets are not quite (yet) back to the ‘melt-up' of May but equity markets are trading in a confident mood after Bernanke caused sentiment to flip from glass ‘half empty' to ‘half full'. China Q2 GDP data did not derail price action as equity futures anticipate a positive start of the week. The semi-annual testimony of the Fed Chairman is typically a seminal event on the market calendar but do we dare say that the one coming up this week is a non-event following last week's message on
China OTC Player submits:By Platinum TigerFor many who celebrate it, the Chinese New Year is all about food. With persistent talk of financial bubbles and with economic uncertainty all around, one thing we can be sure of is that Chinese people will continue to eat, especially for the holiday feast. In the spirit of the season I’ve laid out below a Chinese menu of PRC food stocks, some sweet, some sour, for you to chew on.