10 Chinese Stocks That Tanked Last Week
As bad as things have gone for investors of Chinese growth stocks in recent months, it always seems as if things can somehow get even worse.
Many of China's more popular growth stocks were slammed last week, and it wasn't anything that they individually did.
U.S. regulators have grown frustrated in getting auditors to comply in fraud probes related to China-based companies, and the fear for investors here is that it may be easier just to delist Chinese stocks until clearer accounting can be validated.
This was enough to spook investors out of otherwise honest Chinese growth stocks.
Let's take a closer look at some of the Chinese companies that posted double-digit declines last week.
New Oriental Education
Youku was China's leading online video website, and that was before it acquired rival Tudou. The stock has come a long way since peaking near $70 in the springtime of last year.
Spreadtrum is a mobile chip developer. An opportunistic analyst upgrade -- with Chardan Capital Markets sensing a buying opportunity in going from hold to buy -- wasn't enough to save the stock.
51job would seem to be immune to developments outside of China. The company runs a popular website offering job listings and other employment-based recruiting services. Well, it took a hit, too.
Dangdang is a growing online retailer. A lack of profitability has kept the stock's gains in check. It doesn't help that its origin as a bookseller translates into low-priced transactions per order.
Renren is China's leading social-networking website operator. A lack of profitability there, too, has kept the stock in the single digits.
Many of these stocks are priced at historic low multiples. There's an opportunity there, but investors may have to learn to trust Chinese equities before the inevitable rally begins.
Betting on China
There's plenty of growth still to be had if you buy the right Chinese growth stocks.
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The article 10 Chinese Stocks That Tanked Last Week originally appeared on Fool.com.Longtime Fool contributor Rick Aristotle Munarriz has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend New Oriental Education, 51job, and NetEase.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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