Stocks of Chinese companies, trading in New York, had
their best moth in August after February led by the performance of software
developer Qihoo 360 Technology Co Ltd(NYSE:QIHU), which recently started search
engine services in China.
The Bloomberg China-US Equity Index (CH55BN) of the
most-traded Chinese companies in the U.S. rose 1.4 percent in August to 87.95,
the steepest rise since February, Bloomberg BusinessWeek said in a report.
Qihoo, which launched its search engine on August 16,
jumped 52 percent during the month. It forecast on Aug. 21 third-quarter sales
that beat analysts’ estimates. Qihoo’s American depositary receipts surged to
$22.39 on Aug. 31, from $14.71 at the end of July.
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Monthly active users of Qihoo’s computer-based
products and services rose to record 425 million as of June, from 378 million a
year ago.It forecast third-quarter revenue will rise as much as 73 percent from
a year earlier to $82 million, beating the average $80.3 million estimate of
analysts.
Analysts are expecting Qihoo's search engine to give
entrenched local favourite Baidu, a good run for its money.
Baidu has about 80 percent of the online search market
in China but the arrival of Qihoo has unnerved it. It has taken steps to direct
traffic from Qihoo's search engine to its own homepage.
Baidu.com, Inc. (ADR)(NASDAQ:BIDU) dropped 7.5 percent
in August, dragging its prices down 4.3 percent this year. The company lost
search traffic market share by 4 percentage points to 8 percentage points to
Qihoo, and the trend is expected to continue in the next two quarters.
Online travel company Ctrip.com International surged
the most since 2009 and Sina Corp. climbed for the first time since January.
Ctrip.com, the nation’s biggest online travel agency,
surged 29 percent in August to $16.13, the biggest monthly rally since November
2009. Its smaller competitor Elong Inc.
climbed for the second month, rising 13 percent to $15.
Sina, which runs Weibo, a Twitter-like service in
China, rallied 24 percent in August, snapping a six-month slump that was its
longest losing stretch since January 2009.
The iShares FTSE China 25 Index Fund (FXI), the
biggest Chinese exchange-traded fund in the U.S., sank 3.3 percent last month
to $33.07, snapping a two-month increase.
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