Tuesday, September 02, 2008

China Finance Needs More Explanation

China Finance (JRJC) which bills itself as a leading Chinese online financial information and listed company data provider, announced late last Thursday some impressive growth numbers. They point out that while the Shanghai stock market has been a very tough place to make money they seem to be resonating with Chinese investors who are hungry for investment information.

OK We all now that the Chinese market is huge. We all know that the stock market attracts attention from the Chinese entrepreneurs and business people. The numbers indicate that they are growing.


There is no discussion about which product area’s are doing well or show promise. The entire press release is exciting to read because its all going up up up. But in the cold light of dawn what is the value proposition for the end user? Why is the end user staying with it? What happens when the big boy’s like Bloomberg, Reuters all decide to provide competing products? Will they care to buy this entity to create a foothold? Or will they build their own green field program and advance monolithically.

In any event China Finance needs to stake out where they stand and why they are relevant.