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China Finance Online blames Chinese Stock Market for

poor results

Business Brokerage By Philip White

- You want to request a stock broker to transfer your brokerage

Forex Broker 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

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Online Brokerage 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.

Online only mortgages is a relatively new sector of the mortgage market, and one that is set to surge in popularity, according to new findings by the insurance broker turned lender Direct Line . Direct Line mortgages have today announced the launch of their first online mortgage product . They researched the market thoroughly, and have found that personal contact remains an important part of the mortgage process . However, once customers have visited a mortgage broker or local bank for advice, the lender found that more than half of them seek out the best deals online .

Real Estate Broker 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.

Other factors that will impact the demand for brokers are the increasing number and complexity of investment products as well as the effects of globalization. As the public and businesses become more sophisticated about investing, they are venturing into the options and futures markets. Brokers are needed to buy or sell these products, which are not available for trading online. Also, markets for investment are expanding with the increase in global trading of stocks and bonds. Further, the New York Stock Exchange has announced its intention to extend its trading hours to accommodate trading in foreign stocks and compete with foreign exchanges. If this takes place, it will vastly increase the demand for brokers, both on the floor of the exchange and in brokerage firms to handle the larger volume of trades.

Agency Brokerage Spark "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.

That's out of 434 teams from 78 high schools around the country. In the 30 years the contest has been in operation, more than 9 million students have participated. The contest is now called the Capitol Hill Stock Market Challenge. Each team is given a hypothetical $100, 000 and access to a simulated online brokerage account. To make the contest as realistic as possible, the online program charges commissions on trades and pays interest on unused cash.

Business Broker 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%.

Brokerage Account 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.

Stock Broker 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

Brokerage Online Stock Trading AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking news. If you're not a member, consider joining now. Members get the latest business news, commentaries and stock picks delivered right to their in-box.

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