FT points out to the collapse of chinese internet stocks.The latest lucrative wheeze dreamed up by the country's three big internet portals - sending horoscopes to mobile phone subscribers via text message - has suddenly fallen foul of the authorities.Sina.com, the market leader, now forecasts a 24 per cent decline in sequential revenues for the current quarter. Its shares went down a fifth in after-hours trading on Monday. Sohu.com, where revenues and profits are already falling, and Netease, which has yet to report results, are also on the slide. As the latest episode shows, they can still be blindsided by regulatory change and bullied by semi-monopolies like China Mobile. The rewards of operating in China's unfettered market can be great, but the risks are commensurate.
David Jackson points to Mary Meeker's slides titled "The China Internet Presentation" where she states: "Lots of opportunity with lots and lots of risk". She was certainly correct in her assessment about the risk.
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