Visual China Group (VCG), the Getty Images representative in China, has resumed trading on the Shanghai Stock Exchange and Shenzhen Composite market in China. The stock closed at 27.52 RMB ($4.40) per share up from 25.02 RMB ($4.00) last week when trading was suspended.
Along with VCG more than half all listed companies on the exchange suspended trading in their shares last week. In May VCG was trading at about 73 RMB (renminbi) per share. The company has 669,986,700 shares outstanding. That means that in May the company was valued at $7.88 billion and today the value is about $2.95 billion.
It is believed the company’s gross annual sales are in the range of $60 to $65 million, but only about $40 million is related to licensing. The rest comes from other lines of business.
To put this in perspective Shutterstock (SSTK) had gross annual 2014 revenue of $328 million, 5 times that of the revenue of VCG. Shutterstock was trading today at $52.33, has 35,860,000 shares outstanding and a market capitalization of $1.88 billion.
China is
trying desperately to control the crisis. The government has given money to brokerages to buy stocks -- and ordered company executives not to sell their shares. New company listings have been suspended. The central bank has cut interest rates to a record low.
But if VCG is any example, there may still be a bubble on the Chinese stock market.
For more information about VCG You can open this link
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