InfoAnda - Has Renren suffered enough from China stocks phobia? |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Report: Missing Japanese actress turns herself in | 9 August 2009
Yahoo pulled into Google fracas, Alibaba slams comments | | 16 January 2010
Mike Wallace wins Talladega Truck race | 23 October 2011

Peacekeepers deploy in tense Kosovo | | 29 September 2011

Forum Views () Forum Replies ()

Read more with google mobile : Has Renren suffered enough from China stocks phobia? |

Edition: U.S. Article Comments (1) Follow Reuters Facebook Twitter RSS YouTube Read New York governor signs law approving gay marriage | 2:23am EDT New York marriage bill paves way for same-sex divorce 24 Jun 2011 Nuclear agency head to visit flooded Nebraska reactors 24 Jun 2011 Two killed, dozens hurt in Amtrak collision | 24 Jun 2011 Casey Anthony murder trial nearing an end 24 Jun 2011 Discussed 214 Biden deficit-cut talks hit impasse: Rep. Cantor 137 CBO sees government benefits swamping U.S. economy 69 Fragile economy pushed Obama to tap oil reserves Watched Hefner's revenge; Ryan Reynolds stops traffic Fri, Jun 17 2011 A Tokyo-Paris flight in under three hours on the horizon Fri, Jun 24 2011 Train and truck in fatal smash Fri, Jun 24 2011 Has Renren suffered enough from China stocks phobia? Tweet Share this Email Print Related News China accounting scandals put Big Four auditors on red alert Fri, Jun 24 2011 Profitless Pandora pricks the tech bubble Fri, Jun 17 2011 UPDATE 4-Harbin shares crash 51 pct as bid questioned Thu, Jun 16 2011 Insight: For short sellers of Chinese stocks, it's time to reap Thu, Jun 16 2011 Samsonite falls 11 percent in HK debut; bodes ill for Prada Thu, Jun 16 2011 Analysis & Opinion History suggests Big Tech discount could linger Transcript of Carlos Ghosn interview Related Topics Technology » Deals » 2011 Q2 » Global Deals Review - Parent folder » Inflows Outflows » Media » China » Facebook » China's Renren Inc. Chairman and Chief Executive Officer, Joseph Chen (C) is joined by executives and guests as he rings the opening bell at the New York Stock Exchange, May 4, 2011. Credit: Reuters/Adam Au - NYSE Euronext/Handout By Clare Baldwin NEW YORK | Fri Jun 24, 2011 8:22pm EDT NEW YORK (Reuters) - Renren Inc was hyped as the "Facebook" of China, a company that had access to the world's largest Internet market, and a good way to ride the buzz surrounding social media IPOs -- but investors who believed the story are nursing big wounds. In the two months since its IPO, Renren's stock has lost more than half of its value. The company and its owners sold shares at $14 apiece in early May but since then the stock has sunk to close at just $6.23 on Friday. Whether the IPO price was too high, or investors are now being unduly cautious, remains an open question. Chinese stocks listed in the U.S. have plunged amid growing concerns about alleged accounting fraud and whether the companies' claims about their businesses stand up to scrutiny. Renren has been mostly free of that taint, but it still faces concerns about competition, censorship and a sudden resignation by a key board member before the IPO. "It's being caught up in the Chinese stuff. If you look at all of the recent Chinese IPOs they've all traded pretty badly in the past few weeks," said Nick Einhorn, a research analyst at Renaissance Capital, an IPO research and investment house in Connecticut. "There are a lot of investors and portfolio managers that are reducing their exposure to Chinese stocks, especially relatively unproven ones, like IPO companies." Renren did not respond to requests for comment. The questionable accounting showing up in some companies could be a sign of a broader slowdown in China, prominent Asia-based investor Marc Faber told Reuters Insider on Friday. "One of the most reliable indicators you are in a bubble stage is the emergence of fraud on a massive scale and that we had in Chinese companies very clearly," said Faber, who is also editor of the Gloom, Boom & Doom Report. One pre-IPO investor in Renren has indicated it thinks the sharp decline in the stock price is due to investor concerns about China and has nothing to do with Renren specifically, or the e-commerce sector, said a person who had been briefed on the matter but spoke on condition of anonymity. Certainly, the previous world in which investors bought Chinese stocks to chase turbocharged growth has been largely replaced by a perception that everything from China needs to be treated with some suspicion. Any sense of balance has been lost -- the baby is going out with the dirty bath water, bankers say. "There is no question in my mind that there is growth in China," Rodman & Renshaw head of investment banking John Borer said at a conference in Los Angeles last week, but added: "Today, tactically, the market of investors, have capitulated. They've thrown in the towel." Rodman & Renshaw has historically worked on smaller transactions. Renren is not the only Chinese stock that has fallen sharply since its IPO. Other recent IPO companies that have struggled include NetQin Mobile Inc, Trunkbow International Holdings Ltd and E-Commerce China Dangdang. CLIENTS NOT LOST Morgan Stanley, Deutsche Bank and Credit Suisse took lead roles in bringing Renren public. When the IPO finally priced, it did so at the top of a range that had been increased by 30 percent, and traded up as much as 57 percent during its first day. Since then, it has been almost all downhill. Deutsche Bank and Morgan Stanley declined comment. Credit Suisse was not immediately available for comment. Even though some bank clients lost money on Renren, it is unlikely that they will stop doing business with the banks who sold them the deal, former equity capital markets banker Bruce Foerster said. "If you've got a hot deal, you don't have to call them. They'll call you," he said. Indeed, there is not much in the way of angry phone calls coming in to the banks that worked on the IPO, sources familiar with the situation said. That may be partly because many probably sold the stock at a hefty profit when it soared on the first day -- leaving the mainly retail investors who are thought to have picked it up to lose their shirts. Who got Renren shares in the IPO is not public information. A partial list of major investors will become public on July 1. "Investors, U.S. investors especially, tend to underestimate the risk in Chinese IPOs because they believe it's the next Baidu Inc -- and that's just not the case," said Josef Schuster, founder of Chicago-based IPO research and investment house IPOX Schuster. Chinese web search engine Baidu came public on the Nasdaq in 2005 and rose 354 percent on its first day of trading. Its shares remain more than 300 percent above their IPO price. When people think of Chinese stocks, it's that iconic deal that many reference. BOTTOMING OUT In Renren's case there is a long list of issues in regulatory filings that could catch investors' attention -- questions about its internal financial controls and the tight control and censorship of the Chinese government, for example. And while Renren has not been accused of any accounting shenanigans, it probably isn't helping that the chief of its audit committee, resigned just before the IPO. The official, Derek Palaschuk, was also chief financial officer of Longtop Financial Technologies -- a Chinese IPO company that was hit by the resignation of its auditor and a U.S. Securities and Exchange Commission probe amid allegations of fraud. Even so, some investors are buying into Renren now, hoping the discounting of Renren's stock has been overdone. "All of my friends say that I am crazy because it is probably just another Chinese fraud," declared Adrian Sciberras, a Malta-based accountant and trader who said he bought about $10,000 worth of stock when it hit $7.50. "You have to have the guts to buy and close your eyes, then in a few months time it's fine," he said. Sciberras says he believes that the company has good growth potential and a lot of cash. (Reporting by Clare Baldwin, editing by Martin Howell) Technology Deals 2011 Q2 Global Deals Review - Parent folder Inflows Outflows Media China Facebook Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) 1ert wrote: More accurately its not China stocks in particular. The NYSE is the biggest casino in the world with all sorts of punters, shortists, speculators or whatever they can be called. Because overall there are not that many China-based stocks and also they are new to the game, they have been targetted for speculations and fast game. If really there is fraud, just make a report to the relevant authority in China. Surely in China there are rules and laws, not cowboy land as potrayed in your report. Jun 24, 2011 10:35pm EDT -- Report as abuse See All Comments » Add Your Comment Social Stream (What's this?) © Copyright 2011 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Super Lawyers Attorney Rating Service Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Saturday, 25 June 2011
Hezbollah says finds three spies within group |
Venezuela's Chavez reappears on Twitter from Cuba |
Pakistan army rejects report on bin Laden's cellphone |
Argentine heirs hope DNA test ends identity fight |
Auction to Sell Princess Diana's Dresses
OK-Rod with possible trade: Mets closer also willing to be set-up man
EU leaders give conditional go-ahead to Croatia entry |
U.S. economy grew at tepid 1.9% during first quarter
Analysis: Mexican ex-presidents lead debate on legalizing drugs |
EPA criticized for overriding state discretion on water quality
"Columbo" star Peter Falk dies at 83
Analysis: Do leaderless revolts contain seeds of own failure? |
Jim Renner in front by one stroke at Travelers Championship
Georgia-based group erects controversial anti-abortion billboards in Oakland, California
Curtis Stone, Lindsay Price expecting their first baby
Lakers' Ron Artest files for name change; seeks "Metta World Peace"
White House readies for tough choices on budget talks with lawmakers
Google says probing search companies market practices |
Hackers attack Electronic Arts website |
Proxy advisor urges RIM CEO/chairman roles be split |
Obama launches technology partnership to spur jobs |
Kleiner Perkins weighing fund targeting the cloud |
Venezuela's Chavez reappears on Twitter from Cuba |
Columbo actor Peter Falk dead at 83 |
Hang on Snooki. MTV denies recasting Jersey Shore |
Cars 2 star Eddie Izzard plans political career |
Sad songs bring joy to bluegrass star Alison Krauss |
Syrian forces kill 15 protesters, activists say |
Released Chinese artist-activist Ai's associates freed |
Amateur Cantlay seizes lead at Travelers Championship; shoots remarkable 60
Yani Tseng maintains one shot lead at Wegman's LPGA championship
Egyptians injured in clashes over Mubarak's fate |
Keith Olbermann speaks out on Gay Marriage
Peter Frampton files for divorce
Not ready for return: Yanks, Jeter play it safe with shortstop's calf ailment
Tunisia joins international war crimes court |
John Huston shares lead at Dick's Sporting Goods Open in senior debut
Vietnam to switch to lethal injection for death penalty |
Usher wants Pippa Middleton for his Lingerie Line
Phils pitcher Roy Oswalt faces uncertain future due to injury
Royal Wedding Raises Over a Million for Charity
Google investors fear long battle against Feds |
Heidi Klum Bares It All in Project Runway Ad
Foursquare raises $50 million in new round |
Has Renren suffered enough from China stocks phobia? |
Missy Elliott says Graves' disease not so grave |
Jerry Lewis briefly hospitalized in Sydney |
Bollywood stars cast spell over Toronto |
NATO says hit military targets in Libya's Brega |
At least 20 killed in suicide bombing in east Afghanistan |
Egypt court sentences ex-trade minister to 5 years in jail |
Afghan MPs hit back over court ruling |
Five Pakistani policemen killed in Taliban attack |
Oilers add playmaker, scorer Ryan Nugent-Hopkins as No. 1 overall draft pick
Russian oligarch elected head of pro-Medvedev party |
Ryan Couture suffers upset loss at Strikeforce Challangers
Two Puntland soldiers decapitated
Arkansas turkey hunt remains closed; appeal rejected on procedural grounds
Analysis: More history ahead for Patrick Cantlay at Travelers Championship?
Ex-Ukraine PM says court action targets opposition |
Takuma Sato first Japanese driver on IndyCar pole at Iowa
Joey Logano road-races way to Infineon pole
Dozens march for freedom in Saudi Arabia: YouTube |
Venus forges rematch vs. Pironkova; Wozniacki advances, Roddick falls
Armenia, Azerbaijan blame each other for Karabakh failure |
U2 pass festival test, critics say, despite tax row |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01