Aug. 9 (Bloomberg) -- Renren Inc. tumbled the most in nine weeks, leading declines in Chinese Internet companies traded in New York, after posting a second-quarter loss that was larger than forecast as slowing growth curbed advertisement spending.
The Bloomberg China-US Equity Index of the most-traded Chinese shares in the U.S. dropped for the first time in four days, losing 0.6 percent to 91 by 2:02 p.m. in New York. Renren, a Chinese social-network operator, slumped 5.6 percent while Youku Inc., which manages the country’s most popular video website, sank from a three-week high. China Southern Airlines Co. and China Eastern Airlines Corp. fell after canceling flights as a storm lashed the region with rain and wind.
Renren reported yesterday a second-quarter loss of 6 cents per share, exceeding the mean 4-cent loss estimated by eight analysts surveyed by Bloomberg, as the slowest economic growth in three years prompted retailers to cut back on advertising. Fourteen companies on the Bloomberg China-US index that have reported earnings since the middle of July have trailed analysts’ sales estimates by 9.4 percent, according to data compiled by Bloomberg.
“The slowing economy is hurting Internet sites that offer newer services such as social networking and video,” Echo He, an analyst at Maxim Group LLC, said by phone from New York yesterday. “Chinese advertisers are cutting back in general.”
The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., rose for a fourth day, adding 0.3 percent to $35.29. The Standard & Poor’s 500 Index was little changed at 1,401.01.
Renren tumbled the most since June 1, falling to $3.88. The shares have gained 9.3 percent in 2012.
Outlook Misses Estimates
The Beijing-based company said it expects third-quarter revenue of $49 million to $51 million, below the $51.1 million average estimate of seven analysts surveyed by Bloomberg.
Renren competes with Tencent Holdings Ltd., China’s biggest Internet company by sales, to attract social-network users in a market where Facebook Inc.’s site is restricted.
Shanghai-based Spreadtrum, a chipmaker for mobile devices which counts HTC Corp. as a customer, fell the most since June 21, losing 5.8 percent to $19.17.
Youku, operator of China’s most-popular video website, dropped from its highest since July 13, retreating 3 percent to $18.33.
RDA Miceoelectronics Inc., a competitor of Spreadtrum, reported second-quarter sales that missed analysts’ estimates. Pudong, China-based RDA also forecast third-quarter sales below expectations. Spreadtrum is scheduled to report second-quarter earnings today after the close of the markets.
‘Feeling the Heat’
“A lot of the chip guys are feeling the heat in terms of making their numbers,” said Jay Srivatsa, the managing director of equity research at Chardan Capital Markets LLC. “RDA made it clear that the 3G business in China remains in transition. That indicates to investors that Spreadtrum’s second-quarter and third-quarter numbers could be light.”
Guangzhou-based China Southern Airlines, the nation’s biggest carrier by passengers, dropped 3.5 percent to $23.62, a one-month low after Typhoon Haikui struck eastern China grounding flights at Shanghai’s two airports. Shanghai-based China Eastern, the country’s second-largest carrier, fell 1.5 percent to $16.98.
The Shanghai Composite Index gained 0.2 percent yesterday to 2,160.99 while the Hang Seng China Enterprises Index of Chinese companies traded in Hong Kong added 0.2 percent to 9,867.76, highest since May 15.
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