SOURCE: The Bedford Report

The Bedford Report

September 26, 2011 08:16 ET

High Risk Chinese Internet Stocks Struggle in Current Volatile Market

The Bedford Report Provides Equity Research on Baidu & Sina Corporation

NEW YORK, NY--(Marketwire - Sep 26, 2011) - Chinese Internet stocks took a sizeable hit following the Federal Reserve's "Operation Twist" announcement. While most Chinese tech firms have reaffirmed their guidances despite the economic downturn, Jonathan Masse, a money manager at Walnut Creek, California-based Baochuan Capital Management LLC, which invests in Chinese stocks and options, explains that "when the market gets spooked, there is a flight to lower beta, lower risk stocks. Internet stocks are assumed to be high-beta." The Bedford Report examines the outlook for companies in China's Internet Sector and provides stock research on Baidu, Inc. (NASDAQ: BIDU) and Sina Corporation (NASDAQ: SINA). Access to the full company reports can be found at:

Indeed, growth remains intact for most Chinese tech companies. A recent study from the consultancy, McKinsey&Co estimated that 6 million people go online for the first time in the country every month, and predicted the Chinese internet population will grow to 750 million in 2015. According to the China Internet Network Information Center, China has the world's biggest population of internet users with more than 500 million.

The Bedford Report releases investment research on the Chinese Internet Industry 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 analyst reports and industry newsletters.

Heightened regulation could slow growth, however. China's Commerce Minister recently said the government was looking to regulate corporate investment structures that enable domestic companies to list overseas markets, as China looks to reign in variable structures that allow foreign investors to tap to cash flow from Chinese companies where investment is restricted.

In addition, the Chinese government has taken steps of late to control Twitter-like microblogging in the country. Beijing's Communist Party chief visited Sina Corporation headquarters and called for Internet companies to stop the spread of harmful information, which is seen as a threat to the government's control. China's microblogging market has soared more than 200 percent year on year at the end of the first half of 2011. Sina Corporation says that the company has in excess of 140 million users as of June 30, 2011.

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