Shares of People's Daily Online Co, the online portal of theofficial newspaper People's Daily, closed up 9.99 percent at 38.19yuan ($6.06) in Shanghai yesterday, and its trading had to behalted since yesterday morning. The State-run news portal made a strong debut Friday when its stocksurged 73.6 percent and its trading had to be suspended twice. Thestock soared 91 percent from its initial public offering price of20 yuan ($3.2) within two days of trading. The rules on temporary suspension of share trading on the ShanghaiStock Exchange are aimed at reining in speculative manipulation ofshare prices. "The reason why investors are bullish about the news portal isbecause of its unique background," Li Weidong, researchdirector at consultancy China Venture, told the Global Timesyesterday. "In some investors' eyes, the State-backed media company'sprofits are somehow guaranteed given the support it receives fromthe government's preferential policies," said Li, noting thathe himself has some doubts over the market competitiveness of thewebsite in the long run. By the end of 2011, People's Daily Online had 18,898 visitors perone million people, compared with Sina's traffic volume of 211,647visitors per one million people, according to the company'sprospectus. Zhang Qi, an industry analyst at Haitong Securities, also believesthat the strong performance of the stock was mainly triggered byspeculation. "Even though the media company has some business developmentspace, its share price now is too high, and it is uncertain if theportal can achieve good business growth in future," saidZhang, warning that there will be a price to pay for speculationsooner or later. However, Chen Shaofeng, vice president of the Institute forCultural Industries at Peking University, holds a different view. "As a professional media company, people.com.cn has stablereadership, including local governments and agencies and people whocare about social problems, and it also benefits from thegovernment's supportive policies for the cultural sector,"said Chen. Web services of China Central Television and Xinhua News Agency arealso reported gearing up to float in Shanghai this year. The e-commerce company in China offers quality products such as Laminated Steel , China Galvanized Steel Profile, and more. For more , please visit Hot Dipped Galvanized Steel Coil today!
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