This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

China Shares Post Gains

BEIJING -- Shares were higher in China Monday, as the Hong Kong index added 0.9% to 16,603, and its counterpart in Shanghai was up 0.2% to 1734.

That was a stark contrast to the horror movie that played out for China Net stocks in New York Friday, as the market digested a slew of strict new Chinese regulatory policies for wireless names .

Tom Online (TOMO) spiraled down 19.6% to $13.67, Sohu (SOHU - Get Report) was off 8.7% to $23.62 and Sina (SINA - Get Report) closed down 7.4% to $22.83.

Linktone (LTON - Get Report) gave up 4.1% to $5.14, and Hurray! (HRAY) was off 2.4% to $5.20.

Late last week, news broke that leading cell-phone operator China Mobile (CHL) had endorsed a raft of new policies on wireless service providers aiming to reduce customer complaints, at the behest of the Ministry of Information Industry, China's telecom regulator. China Mobile's provincial offices have three weeks to submit their implementation plans, so it's not precisely clear when the revamp will take effect nationwide.

As for the substance of the changes, wireless firms will have to start offering free monthly trial periods and provide wireless service only after new customers have twice confirmed they want it.

Also, provincial operators are expected to begin canceling WAP (wireless application protocol, which allows cell-phone users to access the Internet) subscriptions that have been inactive for more than four months, and wireless firms will have to start billing for message services by the month, rather than per message sent.

Deutsche Bank's William Bao Bean downgraded a batch of names to a hold rating, including Tom, Linktone, KongZhong (KONG) and Hurray, saying he's waiting "for better visibility on the degree and duration of policies."

Though most companies issued releases, they couldn't provide much clarity other than making clear the changes will hurt. On regulatory issues, China is far more decentralized than the U.S., making it hard to guess what will actually play out in China's 31 provinces.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CHL $65.07 1.28%
LTON $1.02 -15.70%
SOHU $53.58 -0.30%
SINA $32.33 -0.37%
AAPL $126.37 2.53%


DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs