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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4 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 Margaret J. Jackson 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 MSM said...

good one.

 

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