China Finance Online blames Chinese Stock Market for

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
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.
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.
"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.
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%.
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.
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
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