In May, China'S Internet Stocks Were Listed On The &Nbsp; The Good Time Of VC And Speculators.

In May 4th, RENN successfully landed at the NYSE and raised $740 million, creating a new high level of IPO fundraising for Chinese Internet companies.

Behind the scenes of Renren's network is a large number of China.

On the day before Renren's listing, the majority of China's stock market fell sharply, with TMT stocks falling the top.

In the US stock market, the 30 index of I shares fell 5.4%, closing at 1192.67; some famous companies fell from $49 to $45 in a big way; Sina dropped from 133 U. S. dollars to 122 U. S. dollars, down by 9.5%; NetEase dropped from 50 U. S. dollars to about 45 dollars, dropping 8.5%; Sohu fell from the US dollar to the US dollar, and it also fell more than that.

Baidu, Shanda and Focus Media yesterday also fell more than 5%, Youku and Qihoo 360 fell by more than 5% and 6% respectively.

Among them, the most watched king of the crash is China's mobile phone software platform maker NASDAQ:MOBI, whose share price has fallen by 22.05% again, from $17 to about $13, and two on the two day.

Some analysts believe that in addition to the continuous rise in China's concept stocks has reached a fairly high level, the need for appropriate technical adjustment, followed by a large number of intensive Chinese enterprises IPO is also one of the incentives.

Yang Qun, an analyst, said: "the financing scale of Renren's IPO has reached US $743 million 400 thousand, creating a new high level of IPO fundraising for Chinese Internet companies."

He feels that the slump on Tuesday is partly due to the withdrawal of funds and the switch to a new company like Renren.

Reporters learned that in addition to the listing of Renren, Dangdang, Youku and Qihoo 360, there are dozens of companies such as rice net, century Jiayuan, thunder, Shanda literature, netqin and other companies waiting in line with the US listing.

Yang Qun said: "the peak value of Renren's first day of listing has reached US $7 billion 700 million, surpassing Sina's US $7 billion 500 million, and Sohu's US $3 billion 500 million, second only to Tencent, Baidu and Alibaba, ranking fourth in domestic Internet Co market capitalization.

Such a "Big Mac" enterprise certainly has a gold absorption effect, so the general fall in China's concept stocks the day before is also a normal reaction.

Good time for VC and speculators

Reporters learned that after Renren IPO, issue about 42 million 900 thousand shares, the main venture behind it includes Softbank, DCM and pan the Atlantic capital group.

Among them, Softbank group's shareholding after issuing is 34.4%, DCM's shareholding after issuing is 7.5%, pan the Atlantic Capital Group has 3.4% stake after issue.

Chen Yizhou, chief executive of Renren, will sell 13 million shares through IPO and 22.9% after the issue.

According to statistics, Softbank group inject $100 million into Renren net in April 2008. In addition, JohoCapital and SBIInvestment also participated in the current round of financing, which invested a total of $30 million.

As of December 2010, the total investment in Softbank was about US $315 million.

According to the prospectus, Softbank has a shareholding rate of 34.4% after the listing of Renren, and the book value of Softbank's shares is about 1 billion 890 million dollars at the issuing price of $14 per share. Its investment has gained about 6 times in three years.

Others who earn a lot of money are radical speculators. Of course, they are not blind but choose their prey carefully.

Take the Skye network, which fell by two on the 43% day, for example, Citron, a US market research firm, recently questioned the business model of Skye network, saying that Skye network disguise the dying business model by tampering with the truth and set a super low bid price of 3 dollars for the Skye network.

In this regard, Yang Qun believes that the negative reports of research institutions are suddenly disclosed, the purpose is to match the short game of Skye network fund.

He said, "carefully observe the market, you will find that Skye network is definitely problematic, but the problem may not be as serious as the research institutions say. The conclusions of some well-known investment banks are often contradictory."

The target of "short Hunter"

What Yang Qun said is that Citigroup has just reaffirmed the "buy" rating of Skye Internet stock and raised its target share price to US $23 to US $12.

Another US investment bank, PiperJaffray, also raised the target price of the SK network from $12 to $15, indicating that worries about fundamentals were exaggerated.

A senior American investor said that the target of "short hunters" is generally small businesses. They also investigated the operation of the enterprises in depth. They had some valuable materials to prove their views. Then they sold the stock in advance by funds or individuals, then chose the opportunity to suddenly throw out a "negative report". When the share price was lowered to a low level, the stock was sold and the price difference was multiplied by the number of shares sold.

Yang Qun said, "these speculators will not choose a large company to attack, because the risk is too high. Once they are sold short enough, they will be lost by a powerful fund."

He also believes that this kind of wolf sex speculation may even violate the investment laws of the United States and be investigated by SEC.

According to the reporter, SEC is investigating the case of stock price movements in Chinese listed companies earlier in the US, such as the collapse of China's high speed channel, Southeast finance, Dalian Greenwood and Fuqi international.

In May 4th, the share price of Skye's network has recovered steadily, closing at 14.13 US dollars, up 6.32% from the previous trading day.

It is hard to say whether the short seller has withdrawn.

Yang Qun said, things are not that simple.

Citron, the Research Institute of the empty side, has made tit for tat counterattacks against Citigroup and PiperJaffray's efforts to secure the network.

It seems that the air force will not announce the withdrawal so soon.

May Internet stocks in China

Company listing date exchange

Renren May 4th NYSE

Netqin May 5th NYSE

Century Jiayuan May 11th NASDAQ

Phoenix new media May 12th NYSE

Potato net in late 5 (unannounced) uncertain

Rice net 5 mid late (unannounced) undecided

Thunder 5 mid late (unannounced) uncertain