Analyst Talk: China’s Internet Portals

Here’s what Safa Rashtchy of U.S. Bancorp Piper Jaffray had to say in a note on China’s Internet growth, especially the triumverate of Sina.com, Sohu and Netease: “In the Chinese market, we are not dealing with artificially kept low growth rates that could explodes, but simply the very early stages of a booming market that is nowhere close to reaching a normal rate of growth yet. The breathtaking appreciation of the three portal stocks from abnormally low levels leaves some investors to wrongly conclude that all the growth has been priced in. We believe that China is currently in the early phases of the first stage of growth (compared to U.S. that is probably in the third stage of growth) but one that has had a much healthier start.”

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