Chinese internet stocks remain well bid as earnings for single stocks continue to support the entire space. The Emerging Money Chinese Internet Index has moved to another all-time high +4.1% as VipShop (VIPS, quote) and other ecommerce names are delivering on growth expectations.
Vipshop Ltd is an online fashion retailer who has indicated revenue will top $650m in the coming qtr. Make no mistake, the internet is growing in China and consumer spending is not wilting as many believe.
In fact, most market player has been reacting to a problem versus understanding the reality. State enterprises in China are saddled with debt.
Debt exists across the corporate world but that doesn’t change the fact that Chinese consumers have more disposable income.
Above: Chart of the YTD moves in the Emerging Money Chinese Internet Index (EMCHI)