This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Chinese News Agency IPO May Pressure Foreign Media

Stocks in this article: TRI NWSA

Incidentally, the protests this month against editorial control in China had nothing to do with Xinhua. Those took place at Southern Weekend, a domestic newspaper known for pushing the limits. Xinhua does not push limits.

But it does push against borders. It pumps out news in English, Spanish, Russian and other major world languages. Countries without a strong international media presence may welcome Xinhua, not just quotes from it seen in the Western press.

"I think that China's state-funded media expansion abroad will start to win readers and viewers in developing countries that are poorly served by international news media," says Jeremy Goldkorn, founder of the Chinese media blog Danwei.

But even media-saturated audiences in developed countries may take Xinhuanet more seriously than their overseas rivals in evaluating certain types of news.

Chinese government orders and news releases carried by Beijing's own media will be less diluted via Xinhua by comments from analysts and why-you-should-care paragraphs inserted by journalists. That lack of interpretation may appeal to educated readers who just want official facts so they can form their own opinions.

News about listed, state-run Chinese companies may also be taken more seriously if reported by the media organizations that are part of the same big family. Audiences would presume the stories to be official and as such accurate, though in most cases biased toward the company.

Companies already turn first to Chinese media (scoop for the local guy), knowing they would get a glowing report instead of a critical one.

"I think Chinese news sources still have to prove their worth to the world, but if only Chinese news sources are covering certain topics or companies, maybe that would be the only choice," Goldkorn says.

Similar home-court advantages have given staying power to other Asian media outlets, such as Kyodo News of Japan and Yonhap News of South Korea. Audiences outside Japan and South Korea, including other international media, consider both to be about the most authoritative sources of news about their home bases. Consider how often the Western media cite Kyodo, Yonhap -- or Xinhua.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

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