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I listened to the conference call of Sohu and Ctrip lately. Not surprisingly, both companies mentioned the positive effect of 2008 Beijing Olympics. Sohu is the Internet content service sponsor, and Ctrip should enjoy the booming of China travel industry before Olympics. But I think this Olympics effect is already priced in the stocks, and to make things worrysome, the effect may not turn out as big as people thought. The SOHU and CTRP stocks got punished partly because of this “irrational exuberance”.
On the other hand, Chinese economy is still in fast growth mode and I am bullish on some of the companies whose growth does not solely depend on Olympics. Or at least their PR person does not mention Olympics all the time 🙂
