China and the internet

How easy is it to make money on internet stocks from China?

If the trading pattern of Chinese search engine Baidu is anything to go by, investors clearly think you would have to be brain dead not to make money on China's internet related stocks. During its first day trading on the Nasdaq on Friday August 5, the stock leapt a record 354% from its issue price to a lofty 2,000 times forward earnings.

For investors it was clearly a simple decision. Just look at the facts and...

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