April 21, 2021

Why Chinese ADRs plunged?

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mainland-chinese-markets-plunge-during-weekBy Mena Callahan From Emerging Markets

E Commerce China Dangdang Inc, 58.com, Concord Medical Services Hldg Ltd, Sky-mobi Ltd, Qunar Cayman Islands Ltd, Perfect World Co., Ltd.

Dot Hill Systems Corp. (NASDAQ:HILL) fell 12.80% on Monday, extending declines after providing weak forecast. For the fourth quarter, it reported EPS of $0.07, beating the analyst estimate of $0.06. Revenue was $59.7 million as compared to the consensus estimate of $59.1 million. For the first quarter of 2014, it expects EPS of $0.00 – $0.01, missing the consensus of $0.04 and revenue in the range of $47 – $50 million, lower from the consensus of $52.80 million.

E Commerce China Dangdang Inc (ADR) (NYSE:DANG) and 58.com Inc (ADR) (NYSE:WUBA) each lost more than 10% as Chinese Internet stocks fell after the Chinese government reported a sharp drop in exports. China’s General Administration of Customs, reported exports moved down 18.1 percent last month, more than offsetting a 10.6 percent gain the prior month. Imports grew 10.1 percent for a net trade deficit of $23 billion as compared to a surplus of $32 billion in January. Market was looking for a 6.8 percent gain in Chinese exports, 8 percent gain in imports, and surplus of $14.5 billion for February.

“February export numbers were a surprise on the downside, and even combined January-February numbers were below market expectations,” said Li Heng, an economist at Minsheng Securities in Beijing.

“The data shows that the economy faces relatively big downward pressures and macro-policies need to be loosened a bit.”

The news added to fears of a slowdown in the world’s second-largest economy.

“China is moderating but only very modestly,” Donna Kwok, a Hong Kong-based senior China economist at UBS AG, said in a Bloomberg TV interview. “Ultimately you need to wait for March data to really get a true sense of the underlying outlook. The PBOC is very consciously guiding the recent volatility. We see the default as a risk, as a shift in investors’ mindset.”

The sharp drop in exports follows a series of factory surveys since the start of 2014 that point to weakness in economic activity as demand falters at home and abroad.

Concord Medical Services Hldg Ltd (ADR) (NYSE:CCM) and Sky-mobi Ltd (ADR) (NASDAQ:MOBI) each fell below 8% whereas Qunar Cayman Islands Ltd (NASDAQ:QUNR) and Perfect World Co., Ltd. (ADR) (NASDAQ:PWRD) declined 6%.

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Related story:

Services Sector Top Losers: E Commerce China Dangdang (NYSE:DANG), Aeropostale Inc (NYSE:ARO), Ctrip.com (NASDAQ:CTRP), Qunar Cayman Islands (NASDAQ:QUNR)

By Kristen Barton From Tech News

Dangdang Inc (ADR) (NASDAQ:DANG) was the recipient of some unusual options trading activity on Monday. Investors purchased 9,388 put options on the company. E Commerce China Dangdang Inc (ADR) (NYSE:DANG) stock performance was -10.77% in last session and finished the day at $16.65. Traded volume was 10.51million shares in the last session and the average volume of the stock remained 3.60million shares. E Commerce China Dangdang Inc (ADR) (NYSE:DANG) insider ownership is 0.46%.

Aeropostale Inc (NYSE:ARO) is unchanged at $7.00, with 1,368,500 shares traded.ARO is scheduled to provide an earnings report on 3/13/2014, for the fiscal quarter ending Jan2014. Aeropostale Inc (NYSE:ARO) dropped -5.15 percent to $7.00 yesterday on volume of 6.44million shares. The intra-day range of the stock was $6.93 to $7.43. Aeropostale Inc (NYSE:ARO) has a market capitalization of $549.46million.

Travelling in China is next to impossible without Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP) these days. It’s the country’s largest online travel agent and it offers services to more than 90 million members. Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP)’s stock on Mar 10, 2014 reported a decrease of -5.44% to the closing price of $49.73. Its fifty two weeks range is $18.87 -$61.09. The total market capitalization recorded $6.45billion. The overall volume in the last trading session was 4.82million shares. In its share capital, CTRP has 134.42million outstanding shares.

Qunar Cayman Islands Ltd. (NASDAQ:QUNR) was a big mover last session, as the company saw its shares rise 13% on the day. On Monday, shares of Qunar Cayman Islands Ltd (NASDAQ:QUNR) dropped -6.67% to close the day at $33.16. Company return on investment (ROI) is -154.60% and its monthly performance is recorded as 36.18%. Qunar Cayman Islands Ltd (NASDAQ:QUNR) quarterly revenue growth is 21.24%.

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