Tuesday, May 28, 2019

US-Traded Chinese Stocks in bear market

US-Traded 
Chinese Stocks 
& ADRs:




Alibaba ADRs [BABA] 
down on Friday, 
closing at $155, 
down 26% from the 
52-week high.




Weibo [WB] 
the social media giant, 
down 3.8% on Friday, 
to $43.66, and down 69% 
from the January 2018 peak.




Baidu [BIDU] 
down 26% over 
the past six trading days,
to $114.47, and down 58% 
from its 52-week high.




JD.com [JD], 
an online retailer, 
down 48%, to $26.32, 
from its January 2018
all-time high.




Tencent Holdings, 
ADRs [TCEHY] 
the conglomerate 
with holdings in 
social media, payments, 
video gaming, and tech: 
at $40.86, was down 25% 
from the 52-week high, 
and down 33% from
the January 2018 peak




Sina Corp [SINA], 
an internet portal, 
was down 9% on Friday, 
down 37% so far in May,
and down 67% 
from the peak 
in early 2018.
Also down 70% from the
all-time high in 2011.




33 Chinese companies 
went public in the US 
via IPOs in 2018 -- they 
accounted for 17% 
of all 2018 US IPOs.

(1)
iQiyi [IQ], 
the video streaming company, 
“China’s answer to Netflix”, 
went public $18 a share,
peaked at $46.23, 
and then went down 
to $18.70 on Friday.
IQ was down 32% 
since March 18, 2019, and 
down 60% from its peak.



(2) 
NIO [NIO], 
electric vehicle maker,
overhyped in the US 
as the “Tesla of China”, 
at the time of its IPO 
in October 2018. 

The IPO price 
of $6.25 per ADR 
was down to $3.86 
on Friday, 38% below 
the IPO price,
and down 72% 
from the peak 
of $13.80.




An index that tracks 
US-traded ADRs 
of Chinese companies, 
the S&P/BNY Mellon China ADR Index,
closed on Friday at 500.1, 
was down 29% 
from its peak 
in January 2018, 
and down 17% 
so far in May 2019, 
( back to where it had been in April 2015 ). 
The index is dominated 
by Alibaba’s ADRs.




Corporate accounting 
and disclosure in China 
= you can't trust their 
financial statements. 

Chinese companies that had
large amounts of “cash” 
on their balance sheet ...
that "disappeared" when 
the companies defaulted:

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