Chinese Internet stocks move up, on signs of turnaround

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Dateline: LOS ANGELESChinese-based Internet portal and high-technology companies were among the top gainers on Nasdaq because of indications they are showing profits, analysts said.

Chang Hua Qiu, an analyst with Forun Technologies Inc. in Princeton, New Jersey, said Tuesday that recent reports on third-quarter results at many of these companies show turnarounds are in the works.

"Previously, they were growing and losing money. Now they are growing and making money," said Qiu, who owns stock in the companies.

Internet portal firms such as NetEase.com Inc., Sina Corp., Sohu.com Inc. and Chinadotcom Corp. all posted significant gains Tuesday, as did Internet software firm AsiaInfo Holdings Inc., and phone provider Qiao Xing Universal Telephone Co. Inc.

NetEase.com is a China-based Internet technology company that pioneered the development of applications, services and other technologies for the Internet in China.

Chinadotcom is an Asian Internet company based in Hong Kong, while Sohu and Sina.com are Asian Internet portals based in China.

AsiaInfo Holdings Inc. is a China-based provider of Internet-related information technology services. Qiao Xing Universal Telephone Co. Inc., also based in China, makes telecommunications terminals and equipment, including phone sets in China.

On Tuesday shares of AsiaInfo traded up 21 percent to $6.59; Qiao Xing gained 14 percent to $3.16; Chinadotcom rose 4 percent to $2.65; NetEase.com increased 13.5 percent to $10.92; Sina.com added 15 percent to $5.67; and Sohu.com was up 24 percent to $5.98.

"Their business is really booming," said Qiu of the "Big Three" Chinese Internet portal firms NetEase.com, Sohu.com and Sina.com.

Conal Saturno-Sanjana, vice president of equity sales for Auerbach Grayson & Co., said the Big Three have moved in tandem in recent days on disclosures filed with the Securities and Exchange Commission that several insiders and others in the companies made big stock sales.

Saturno-Sanjana, who doesn't own stock in the Internet firms, said otherwise, there was no major news Tuesday to explain the bullish movement of the stocks.

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Eds: Pat Maio is a correspondent for Dow Jones Newswires.