Squeeze the bubble

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In last few days many new Chinese IPO listed in the US are under pressure, notablly:

E-House China (EJ), China Digital TV (STV), Wuxi Pharma (WX)

and last but the least, Giant Interactive (GA), the No. 1 online gaming company in China, owned by well known Chinese entreprenur Mr. Shu Yuzhu. According to CnAnalyst, GA also has the highest margin in all Chinese stocks listed in the US, with a gross margin 90% and net margin 70%. It sounds to me they are in drug dealing business 🙂 Because those numbers easily beat monopoly companies such as PetroChina (PTR) and China Mobile (CHL), or leading search company Baidu (BIDU).

All right, I shall be more positive in my blog: actually I like Wuxi Pharma among those new companies, along with the Longtop (LFT) I mentioned earlier. Because I think their business are more sustainable.

Wuxi Pharma Tech pic

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