Dallas, Texas 07/08/2015 (Financialstrend) – E Commerce China Dangdang Inc (ADR) (NYSE:DANG) was one among the several china-based stocks which reported a dip in their share prices. The companies reflected the spate of selloff in Chinese equities as most indices of the south east Asian region reported drops. The steep falls varying between 1.3% in Shangai to Shenzhen’s 5.3% fall, was despite the quick-changes in policy the government introduced to arrest the fall. The day also saw nearly hundreds of calls to halt trade, by Chinese companies.
E Commerce China Dangdang Inc (ADR) (NYSE:DANG) and several others of the web and mobile technology domain, listed on US browsers also dropped by nearly 5%. Some saw nearly 10% drop as well.
The sharp slide is attributed to the two month-long fall that was caused part, due to panic selling as well as margin calls. A ‘dramatic’ change in multiples was witnessed as US-listed technology firms with Chinese origins, sought to compress. These companies had both the P/E as well as P/S ratio, lower than most of the same-segment US-based companies.
Meanwhile, on July 6, 2015, marginal gain of 2.4% was made at Shanghai exchange, due to the Greek referendum, which voted against austerity measures of the European financial institutions; along with Chinese government-backed policies to buy $19.3 billion shares to prop-up the equity price plunge.
However, July 7, was a hard day for Chinese mobile service providers. E Commerce China Dangdang Inc (ADR) (NYSE:DANG) and several other companies continue to report stock market slide, even as several traders put in place risky requests. News reports from Shanghai indicate that more than hundreds of companies have sought the Shanghai as well as Shenzhen exchanges to halt trading, in a failed attempt to remain unaffected by the downslide. It is also expected that over 200 other companies, in addition to the 2,800 have filed for suspension of trading on July 7, 2015.