Netease jumps on no apparent news

The news of purchasing of Target Media by Focus Media boosted almost all Nasdaq China concept shares yesterday.

The merger basically gave Focus Media a monopoly in China's outdoor video advertising market. Financial market liked the deal and pushed FMCN by 14.26% to $42.42 per share.

Comparing with Focus Media's rise, the jump in internet portal Netease's shares had nothing accounted for. Ever since Netease's management reduced earning projection for this quarter, the stock has been fallen hard. However, it is still the most expensive Chinese company listed on the Nasdaq. Yesterday, it closed at $67.01 with astonishing 13.76% gain. (it gained another 3.5% today). Netease indicated that the company had not released any earning related news before the stock's rise.

The rise in FMCN and NTES shares clearly boosted American investor's confidence. Shares of Sina, Shanda, C-trip, Tom.com, Sohu.com, China.com, Kongzhong, Linktone, SMI, Asianinfo, the9, Baidu, and VIMicro all gained more or less yesterday.

Reported from Beijing Morning News