China.com’s Shares Gain for 2nd Day After U.S.-China Trade Agreement

Shares of China.com Corp., a provider of Chinese-language Internet services, rose 26% on Tuesday, gaining for a second day after the U.S. and China agreed to terms for China’s entry into the World Trade Organization.

Hong Kong-based China.com, one of the first Asian companies to be listed on the Nasdaq market, surged $26.69 to a record $127.88. The stock (ticker symbol: CHINA) is up 539% since going public at $20 on July 13.

Chinese government officials agreed Monday to allow outside companies to own up to 49% of companies in its telecommunications-services industry. That would let China.com better ally itself with non-Chinese Internet companies, including America Online Inc., which already owns a 10% stake.

Chinese officials had previously issued mixed signals about non-Chinese companies owning stakes in telecommunications and Internet-service companies. Minister of Information Industry Wu Jichuan added to the uncertainty in September when he said China prohibits equity ownership in such companies by outsiders.

China.com agreed in September to team up with AOL to start AOL Hong Kong.

Though China hailed the trade deal with the United States, fears that more open competition could hurt some Chinese companies have weighed on stocks in Shanghai and Shenzhen in recent days.

The main Shanghai index of shares available only to Chinese investors fell 1.4% on Tuesday. It has slumped 14% since mid-September.

Among non-Internet Chinese issues traded on the New York Stock Exchange, Jilin Chemical Industrial (JCC) fell 69 cents on Tuesday to close at $10.50, Shanghai Petrochemical (SHI) slid $1.19 to $20.56, and Yanzhou Coal Mining (YZC) lost 88 cents to $17.63.

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Trading Up

Shares of China.com, which went public at $20 in July, have rocketed on news of the U.S.-China trade accord. Weekly closes and latest on Nasdaq:

Tuesday: $127.88, up $26.69

IPO price: $20

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Source: Bloomber News