SOURCE: Paragon Financial Limited

Paragon Financial Limited

November 20, 2012 08:20 ET

Chinese Internet Companies Predict Slowing Advertising Revenues in the Fourth Quarter

The Paragon Report Provides Stock Research on SINA and Sohu

NEW YORK, NY--(Marketwire - Nov 20, 2012) - Chinese stocks slumped last week after China announced the appointment of new government leaders. Bloomberg's Shanghai Composite Index (SHCOMP) fell to a seven-week low. "The composition of the top leaders indicates a go-slow approach to reforms of the financial markets and the economy and not in an aggressive way as expected by the market," said Dai Ming, a Hengsheng Hongding Asset Management Co. fund manager. The Paragon Report examines investing opportunities in Chinese Internet stocks and provides equity research on SINA Corp (NASDAQ: SINA) and Inc. (NASDAQ: SOHU).

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China's soft economy, which is set to grow at the slowest pace in over a decade, has caused a slowdown in China's advertising market. Major Chinese companies such as Baidu, Renren, and Tencent have recently warned of slowing advertising revenue growth in the fourth quarter.

"The absence of the Olympic Games event and decelerating economic growth in China may slow revenue growth rates for the online-advertising industry as a whole, including our own online-advertising business," Tencent said.

Paragon Report releases regular market updates on Chinese Internet stocks so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

Sina's digital media network, which consists of (portal), (mobile portal) and (social media), enable Internet users to access professional media and user generated content in multi-media formats from the web and mobile devices. Shares of the company fell sharply last Friday after reporting that expects revenues to fall in the fourth quarter due to a slowdown in advertising demand. is China's premier online brand and indispensable to the daily life of millions of Chinese, providing a network of web properties and community based/web 2.0 products. The company recently reported announced that its online game subsidiary, Ltd. began open beta testing of Battlefield Online, Changyou's first licensed online first-person shooter game on November 15, 2012.

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