Second Quarter Summary
posted by The Traveller on Saturday, July 02, 2011

The Second Quarter performance of small cap U.S.-listed Chinese stocks was even worse than the already terrible performance in the First Quarter. The sectorwide sell-off spread from reverse merger stocks and bulletin board quoted names to established Chinese companies and recent tier one IPOs. Only very few stocks managed to counter this trend and ended the quarter in green territory, mostly driven by company-specific news like going private initiatives (CSR, FTLK) or large investments as Tencent and Expedia buying a stake in eLong (LONG).

Here are the highlights of the two indices we are tracking for China stocks. The Main Index holds the 40 largest exchange traded stocks with a market capitalization under $1 billion, while the China OTC Index tracks the 40 largest stocks on OTC Markets with reasonably liquid trading patterns; stocks like Tsingyuan Brewery (BEER) which traded under $500 for the last week of June are not eligible for the OTC Index.

Trading China Main Index
- 571.36 (down 24.74% for the Second Quarter)
- 8 stocks are up, 32 are down

Top Five
  • eLong (LONG) +68.81%
  • China Kanghui Holdings (KH) +33.63%
  • Charm Communications (CHRM) +19.98%
  • SouFun Holdings (SFUN) +16.18%
  • China Security & Surveillance (CSR) +14.25%
Bottom Five
  • China New Borun (BORN) -51.66%
  • Puda Coal (PUDA) -51.03%
  • SinoTech Energy (CTE) -49.50%
  • ChinaCache International (CCIH) -44.77%
  • Mecox Lane (MCOX) -44.39%
Trading China OTC Index
- 350.76 (down 41.23% for the Second Quarter)
- 4 stocks are up, 35 are down, 1 unchanged

Top Five
  • China Health Industries (CHHE.OB) +209.80%
  • Fuqi International (FUQI.PK) +38.59%
  • Deyu Agriculture (DEYU.OB) +6.33%
  • Asia Pacific Wire & Cable (APWC) +1.46%
  • AgriSolar Solutions (AGSO.OB) +0.00%
Bottom Five
  • China Executive Education (CECX.OB) -77.56%
  • Sen Yu International (CSWG.OB) -75.00%
  • China Shandong Industries (CSNHD.OB) -65.00%
  • Lotus Pharmaceuticals (LTUS.OB) -52.78%
  • China Energy Corporation (CHGY.OB) -52.13%
But there is hope!

While the OTC Index seems to be bottoming here, the Trading China Main Index has made a significant move in the past two weeks and gained 17.5% from the lows printed in mid-June.



Quarterly Revision (Second Quarter)

Both China indexes are revised at the beginning of each quarter. Stocks that do no longer meet the requirements are being removed. Reasons could be posting a loss in the most recent quarter, uplisting to a higher exchange or just a huge decline in share price. Following is a list of all changes for both indexes.

Trading China Main Index

Additions
  • 21Vianet Group (VNET)
  • Asia Entertainment & Resources (AERL)
  • ATA Inc. (ATAI)
  • China Dangdang (DANG)
  • China Ming Yang Wind Power (MY)
  • China Real Estate Information (CRIC)
  • China Yuchai (CYD)
  • China Zenix Auto (ZX)
  • E-House (China) Holdings (EJ)
  • iSoftStone Holdings (ISS)
  • Jiayuan.com International (DATE)
  • NetQin Mobile (NQ)
  • Phoenix New Media (FENG)
  • Taomee Holdings (TAOM)
  • Xinyuan Real Estate (XIN)
Removals
  • AirMedia Group (AMCN)
  • Bona Film Group (BONA)
  • China Hydroelectric (CHC)
  • China New Borun (BORN)
  • China TechFaith Wireless (CNTF)
  • China XD Plastics (CXDC)
  • China Xiniya Fashion (XNY)
  • Cogo Group (COGO)
  • eLong (LONG)
  • Fushi Copperweld (FSIN)
  • Lihua International (LIWA)
  • Mecox Lane (MCOX)
  • Puda Coal (PUDA)
  • Sky-mobi Limited (MOBI)
  • VisionChina Media (VISN)
Trading China OTC Index

Additions
  • China Agritech (CAGC.PK)
  • China Bilingual Technology (CBLY.OB)
  • China Integrated Energy (CBEH.PK)
  • China MediaExpress (CCME.PK)
  • ShengdaTech (SDTH.PK)
  • Yayi International (YYIN.OB)
Removals
  • Asia Pacific Wire & Cable (APWC, uplisted)
  • China Pharmaceuticals (CFMID.OB)
  • China Shandong Industries (CSNHD.OB)
  • Eastern Environment Solutions (EESC.PK)
  • GC China Turbine (GCHT.OB)
  • Lotus Pharmaceuticals (LTUS.OB)

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11 Comments:

At August 03, 2011 3:03 am , Anonymous Anonymous said...

It says BEER traded for under $500? Although technically correct, I think that is misstated.

 
At November 06, 2011 3:46 pm , Anonymous Anonymous said...

If you remove stocks based on a decline in share price, then your index is destined to produce poor results. When a stock falls in price (without any corresponding drop in earnings or other fundamentals), you shouldn't sell it, you should buy more. By definition you are setting up your index to "buy high, sell low".

 
At July 19, 2016 10:16 pm , Blogger Drama_Killer said...

In the writer's understanding there are three fundamental zones to consider when writing papers. To begin with is getting sorted out one's reasoning about the subject of the paper.

 
At January 21, 2017 7:05 pm , Blogger stevenjocb said...

good one.

 
At April 27, 2018 2:08 pm , Blogger Linda Thomas said...

We can see that here's the source of the highlights of the two indices we are tracking for China stocks. The Main Index holds the 40 largest exchange traded stocks with a market capitalization under $1 billion, while the China OTC Index tracks the 40 largest stocks on OTC Markets with reasonably liquid trading patterns; stocks like Tsingyuan Brewery (BEER) which traded under $500 for the last week of June are not eligible for the OTC Index.

 
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At January 07, 2022 12:51 pm , Blogger Elizabeth Johanson said...

That's impressive! I have been looking for the accounting dissertation proposal writing help for the past two days and I think this quarter summary of yours has given me a brief idea for the accounting topic that can also relate with economics.

 
At December 27, 2023 9:48 am , Blogger Daxton Beckett said...

The Main Index holds the 40 largest exchange traded stocks with a market capitalization under $1 billion for best thesis writing please consider Marketing Thesis Example while the China OTC Index tracks the 40 largest stocks on OTC Markets with reasonably liquid trading patterns.

 
At April 23, 2024 7:26 am , Blogger David Jones said...

Reflecting on the second quarter, it's clear that the performance of small-cap U.S.-listed Chinese stocks was a disappointment, even more so than the first quarter. This sector-wide sell-off, reminiscent of a **dissertation proposal** gone awry, didn't spare even the established Chinese companies and recent top-tier IPOs. However, a glimmer of hope was seen in the few stocks that managed to stay in the green, thanks to company-specific news like going-private initiatives or significant investments. Here's hoping for a better next quarter!

 
At April 24, 2024 3:07 am , Anonymous chricton said...

Great summary on the second quarter's developments! It’s amazing to see the progress in various fields, but I was particularly intrigued by the innovations in classic furniture in Dubai. These trends are setting the stage for a more elegant and traditional aesthetic, blending craftsmanship with modern functionality. Looking forward to seeing how these designs evolve in the next quarter!





 
At April 24, 2024 8:11 am , Blogger John Smith said...

As someone who uses a **Business management dissertation writing service**, I find the quarterly revision of China's indexes fascinating. It's interesting to see how stocks are removed due to various reasons such as recent losses, uplisting, or a significant price drop. This dynamic nature of the market keeps us all on our toes!

 

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