Large area break of online game company

Absrtact: Since May, domestic market concerns about tightening policy have led to a deep unilateral downward trend of the stock market, and the collapse of the index has also led to frequent breaks in the IPO. The U.S. market in the other side of the ocean is also quite weak, in the shadow of the European sovereign debt crisis, the recent Asian

Chinese concept stocks fall

Statistics show that while more than 140 companies have listed on Nasdaq by the end of the month, more and more companies are weakening in the face of poor performance. As of Wednesday, the stock prices of nearly 20 companies have been breaking or near-breaking, sharply exceeding the Nasdaq Composite index in the same period.

Since last week, the Nasdaq-China concept unit has fallen by nearly 90% per cent, and more than 20% per cent fell by more than 10%. Among them, Deheil Healthcare fell to the top of the list, falling nearly 25% per cent in only 3 trading days, with star fuel and perfect time and space declines followed by more than 20%. In addition, China's agricultural science and technology, Dahua construction, Green Connaught International, Crystal Australia solar energy, precision calorimeter, China Motor and solarfun new energy decline of more than 15% respectively.

Large area break of online game company

In the weak trend of various types of concept stocks, online gaming companies share prices are even a record low this year. At the same time, the plate stock also a large area of break phenomenon. In addition to the global economic and market environment bad factors, the future performance of such companies are uncertain growth prospects are also the main reason for the stock sell-off.

The plate, Shanda games, Giants Network and the Nineth city are located in the break company, of which the Nineth city is the most serious. In Tuesday, the stock price of 4.2 U.S. dollars, the Nineth city distance of 17 U.S. dollar price has fallen three-fourths, the most serious break. And Giant network and Shanda game Two companies are also very unsatisfactory performance, the day of Tuesday closed to 7.09 U.S. dollars and 5.57 U.S. dollars, the share price is also from their respective distribution price fell more than 50%.

In addition, after the announcement of the company's first-quarter results, the perfect time and space share prices plunged. The company lowered its revenue and profit forecasts for the two quarter in the first quarter, when the quarter-on-quarter growth was less than expected, leaving investors with a massive sell-off of perfect time stocks and a 25% per cent plunge.

For the company's weak share price situation, the industry pointed out that after several years of high-speed growth, the online games industry has basically completed its own "enclosure movement", in a relatively fixed market share performance exceeded 40% of the high growth period has passed. The industry analysts said that in the global economic slowdown in the context of a slowdown in the market, the degree of risk appetite is rapidly reduced, the recent regional economic and political turbulence is to allow the market to achieve any risk and unknown factors are intolerable state.

For the online games industry, the existing products have been unable to bring a significant performance improvement for each company, but has not yet launched or in the research and development of new products there is a large unknown factor, can be accepted by consumers to be time to verify. The stock's share price will continue to disappoint investors before the global economy stabilises and the index returns to an upward path.

The media sector faces challenges

In addition to the game plate companies appear a large number of break trend, the Chinese concept stocks media companies are also the hardest hit. The plate, Xinhua Yue Move the media, China as the media, aviation and the United States media and the media all break.

Break in the company, the most eye-catching than Xinhua Yue moved the media. March 10, 2007, the company to "Xinhua financial Media" Landing on the Nasdaq, IPO price of 13 U.S. dollars, then sold a total of 23.1 million U.S. depository receipts, equivalent to 46.2 million common shares. After renaming the "Xinhua Yue Media" And the transformation of the operation Strategy, the company's shares fell to 0.37 U.S. dollars this year, the extent of the break is stunning. Only May 11 this year, Xinhua Yue moved the media on account of the first quarter of serious losses in shares plunged 33.91%. The industry and analysts have said that, although expected, the decline exceeded expectations for Xinhua's move to share prices.

For this plate of the phenomenon of the focus of break, private equity figures pointed out that fierce competition is to make the performance of the media companies to decline the main factor. The industry is still in the recovery phase after the impact of the financial crisis, the company's strategic transfer effect has not yet been significantly reflected, the industry's integration and mergers and acquisitions still need some time, if the company can not effectively find new business growth to achieve value growth, the company's shares will be more violent selling and deep in the