Web Crackdown to Hit Major Internet Firms
Shares of Youku Inc (NYSE: YOKU) and Tudou Holdings Ltd (Nasdaq: TUDO), China's top two online video sites, fell in New York trading after the Chinese government announced plans to clean up online videos, particularly those depicting violence and pornography. The move will deal a greater blow to Tudou, which hosts far more user-generated content (UGC) than Youku, ThinkEquity analyst Henry Guo said. UGC contains the majority of violent and pornographic video material online. Youku acquired Tudou for over $1 billion in March, gaining a one-third market share. Separately, Oppenheimer analyst Andy Yeung argued that Renren Inc (NYSE: RENN), a leading Chinese social networking site, and Sina Corp's (Nasdaq: SINA) popular Weibo microblogging service will also be pummeled by the crackdown.
Sinopec Builds Largest Oil Storage in Central China
Sinopec Corp (NYSE: SNP, SHA: 600028, HKG: 0386) is building a refined oil storage and transport facility in Hunan province, the State-Owned Assets Supervision and Administration Commission said. Expected to become operational by the end of February 2013, the facility will be able to store and carry half a million m3 of refined oil, or 3.15 million barrels, making it the largest hub of its kind in central China. Sinopec Changling, Sinopec's branch in Hunan, is capable of processing eight million tons of crude per year.
Dongfeng Auto Forecasts 1H Earnings to Tumble 60-70%
Dongfeng Automobile Co (SHA: 600006) said it expects its net profit to plunge 60% to 70% in 1H 2012 due to sharp falls in both investment returns and sales of light-duty pickups. It posted a ¥295 million net profit for 1H 2011.
Faw Car Forecasts ¥75m Loss for Q1
Faw Car Co (SHE: 000800), a leading compact car maker, said it expects to post a ¥45 million to ¥75 million net loss for 1H 2012 after prices and margins fell as a result of stiffer competition. The company sold 91,700 cars over the past six months, down 35.5% from the same period a year ago. It posted a ¥10.86 million loss for Q1 2012, compared to ¥392 million in the black a year earlier.
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