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.

chinese internet users in internet cafeVipshop Ltd is up a staggering 29% today and 60% on the month as 1Q revenue forecasts beat street.   

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.   

Labor rates have risen.  Dangdang (DANG, quote) the equivalent of online Amazon books or Barnes and Noble is +13% today as and 56% since announcing better than expected earnings last week.


Above: Chart of the YTD moves in the Emerging Money Chinese Internet Index (EMCHI)

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