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China Finance Online blames Chinese Stock Market for

poor results

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Beginner Day Guide Online China's online listed company data provider, China Finance Online, said that weak Chinese stock market results would effect the company's performance.If you would like to receive late breaking news on technologies covered by AXcess News then you need to subscribe. By joining, you can stay ahead of the pack and receive the latest news in your email in-box first.Print This Page

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Broker Day Online Trading Feb 10, 2005 (AXcess News) Beijing - China Finance Online Co. Limited (Nasdaq: JRJC), a Chinese online financial information and listed company data provider, today informed investors that the prolonged weak Chinese stock market performance will have negative impact on the business of China Finance Online.

The Japanese Yen is stronger against all of the major currencies with the exception of the Australian and New Zealand dollars. Even though the US stock market has not responded negatively to the move in the Shanghai index, and actually made gains yesterday, carry traders need to be very careful in the weeks to come. If the Shanghai stock market rebounds and refuses to fall, the Chinese government will become even more anxious about cooling the stock market. As a result, they could take more aggressive measures which would only put further pressure on carry trades.

Day Strategy Trading Jun Ning, China Finance Online's CEO blamed the Chinese Stock Exchange's poor performance on the drop in users for JRJCs website citing a steep decline in trading volume on Shanghai Stock Exchange Index as a reason. Ning stated that the SSEI's trading volume was only 28 percent of the levels during the same period last year and that the Index lost 6 percent in value in January alone.

than any other market in the world. hours a day, five days a week. Furthermore, the Forex Market is the largest financial market in the world with daily reported volume of over $1.4 trillion changing hands between buyers and sellers across the globe, making it one of the most exciting markets for trading. Although currency trading is inherently governmental (central banks) and institutional (commercial and investment banks), technological innovations, like the internet, have made it easy for individuals to take part in the currency trading markets and to trade via intermediaries online.

Day System Trading "The current stock market conditions have affected the investor's demand for our service packages. Unless the stock market has a fundamental turn-around in the near future, our revenue in Q1 and whole year of 2005 will be negatively affected," said Ning in a statement released late Thursday.

  • Watch the demand for shares by looking at the Volume % Change for each of your stocks. It will show you immediately how much a stock traded vs. its average daily volume over the last 50 trading days. For example, a stock that trades 100, 000 shares on average will have a 50% Volume % Change if it trades 150, 000 shares on the day.
  • Stocks closing at their highs for the day or gapping up in price can indicate strong demand.
  • Companies buying back their stock in the open market and companies showing stock ownership by management can be positive indications.
  • When a stock breaks out of a price consolidation area, trading volume should be at least 50% above its average daily volume, indicating strong demand.
  • In many cases, a strong stock breakout will see volume up 100% or more for the day, indicating solid buying and the possibility for further price increases.

Day Signal Trading Shares of China Finance Online closed up 7 cents at $9.32 Thursday. But in after hours trading its shares dropped considerably, hitting a low of $8.25, off $1.07, or 11.48%.

Day Rule Trading The company said it planned to change its online focus to services that were not as dependent on the Chinese Stock Exchange performance, the there was no indication of what investors could look forward to.

Day Tip Trading On the open of NASDAQ trading Friday, investors are apt to see China Finance Online reflect its after-market trading results of Thursday and could possibly fall further on the disappointing news released after the closing bell Thursday. Advertisement

Day Firm Trading AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking news. If you're not a member, consider joining now. Members get the latest business news, commentaries and stock picks delivered right to their in-box.

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