Chinese equities dropped the most in a week in New York as Trina Solar Ltd. led manufacturers lower amid falling product prices. Giant Interactive Group Inc. slid after its revenue forecast missed analysts’ estimates.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. slipped 1.2 percent to a one-week low of 92.23 yesterday. Trina, China’s third-largest solar cell maker, fell 9.6 percent and LDK Solar Co. had the steepest retreat in six weeks. Online games operator Giant Interactive tumbled the most in two months while E-Commerce China Dangdang Inc. dropped 9 percent.
Thin-film solar module price fell to a record low while cell prices slid toward the weakest levels in three months, according to reports by Bloomberg Industries. First Solar Inc., a Tempe, Arizona-based manufacturer reported on Aug. 6 second-quarter profit that missed estimates and reduced its 2013 forecast. The European Union said yesterday that it refrained from imposing preliminary anti-subsidy tariffs on Chinese solar panels after reaching an agreement with China.
“People are no longer in a rush to build their solar inventory like they did in anticipation of heavy tariffs,” Gordon Johnson, an analyst with Axiom Capital Management Inc. said by phone in New York. “Real demand remains weak. There is a lot of misplaced optimism priced into these stocks.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., fell 1.9 percent to $33.78 in a third day of declines, the longest slide in a month. The Standard & Poor’s 500 Index slipped 0.4 percent to 1,690.91, extending its loss this week to 1.1 percent.
Trina Solar, based in Changzhou of Jiangsu province, sank to $6.60, the steepest decline since May 29. Xinyu-based LDK, the world’s second-biggest solar wafer maker, lost 7.1 percent to a four-week low of $1.43. Suntech Power Holdings Co. slid 5 percent to $1.32, while Yingli Green Energy Holding Co. slipped
5.9 percent to $3.64.
Giant Interactive tumbled 8.6 percent to $7.72 in New York, the biggest slump since June 5.
The Shanghai-based company said it expects third-quarter revenue to be “flat to moderately up” from the previous period in a filing Aug. 6. Sales rose 11 percent from a year earlier in April-June to $95.8 million, while revenue was projected to grow to $98.5 million for the third quarter, according to the average estimate of five analysts compiled by Bloomberg.
Analysts at Oppenheimer & Co. and 86Research Ltd. lowered their sales and earnings estimates after the company’s forecast.
Dangdang, China’s biggest online book retailer, sank to $9.83, the biggest drop in six weeks. The Beijing-based company retreated for a second day after reaching a two-year high of $10.95 on Aug. 5.
Youku Tudou Inc., owner of China’s biggest video websites, fell 6 percent to $23.94, after gaining for five consecutive days. The Beijing-based company is scheduled to report results for the second quarter after markets close today.
Sales may jump 94 percent to $751.9 million, compared with the company’s forecast of between $720 million and $770 million provided in May, according the mean estimate of six analysts compiled by Bloomberg. Net losses may narrow to $122 million from a $232 million shortfall the prior three months, the average estimate showed.
Phoenix New Media Ltd., an Internet, TV and mobile-news provider, surged 6.2 percent to $7.01, its highest price since April 2012. Volume was 1.9 times the daily average over the past three months. The stock traded at 20 times its estimated profit for the coming 12 months, the highest since October 2011.
The Hang Seng China Enterprises Index in Hong Kong plunged
2.1 percent yesterday to 9,446.38, the biggest decline since July 3, while the Shanghai Composite Index retreated 0.7 percent to 2,046.5, slipping for the first time in seven days.