China: A vast land of many opportunities.
Hard landing fears in the Chinese stock market are showing the amount of distress China’s oversold stocks are enduring.
The Chinese domain market, meanwhile, is seeing signs of a reverse growth, as far as “golden chip” domains go.
LLLL .com domain auctions such as this one fail to sell; such pricing was considered a steal at the end of 2015. Several other such auctions remain in the $1,800 – $1,900 territory as well.
Meanwhile, a thoughtful analysis of current market conditions in the Chinese domainsphere was presented by long term investor, Sahar Sarid, who stated:
“Most of our domain sales to the Chinese market in 2015 are names that were bought by the new purchasers for resale purposes, and the prices they paid for them are far above retail values.
Today, those names either don’t resolve or are for sale.
These are signs of an inefficient market that is bound for a correction.
If there are no end users in sight this market cannot and will not sustain itself.”
Not everyone shares Sahar Sarid’s view of the market; notably, Drew Rosener of Media Options remains optimistic:
“The growth curve of Internet adoption and therefore number of end users is about to change in an exponential way. We just saw the start of it in my opinion in the last 18 months.”
We keep track of short domain sales among China’s traders, and report them. Some data is provided by the Chinese domain sales tracker, BenMi.com.
Here are the Monday names:
348.cn
984.cn
ctp.cn
dcg.com
gkb.com
tqy.com
wdf.com
yfq.com
2757.com
hzzq.com
mkzb.com
wxhd.com
xian.com
yzzq.com
“The sky is falling, the sky is falling” Sure it is. Printing money out of thin air for years to prop up a fake economy is definitely going to come home to roost. Get liquid as there will be major deals in the next few years.
A very interesting perspective from a Chinese investor over at DNW dot com put a perspective on things from inside China.
Zhang YaChuan says
“I don’t see any other alternative investment direction big Chinese domainers could shift to in at least the next 5 years: stock market is abnormal, and bulk commodities plummeted. real estate is a bubble, physical stores are harder and harder to sustain because of high rent fee.”
Buy and hold seems to be the play. Of course NO ONE should invest any money in such a speculative market as ours. But compared to traditional investments domains appear to be a decent bet. The market is still so green in China and even here for domains I think there is a lot of room for growth. Things will go up and down in any market but languages and lucky number combo’s won’t be re-invented in our lifetimes.
祝你好运，快乐投资！
Steve – The Hong Kong fund managers have long reaped their investment. The bag is being held by those that refuse to listen to the canary tweets from the proverbial coalmine.
Most of our domain sales to the Chinese market in 2015 are names that were bought by the new purchasers for resale purposes, and the prices they paid for them are far above retail values.
I so disagree with the above. What was wrong with our industry was the wide buy / seller ratios. You are now seeing that tightening up.
Our industry is peanuts compared to the global implosion that is in the cards.. As mentioned keyword .com and cctld domains and short lucky number numerics will ebb and flow with the economy but will always hold value for a business or individual looking to promote their product or service. If you sell tea then tea.com will always be worth money because it brings in sales. One of the things I sell is raw stone via http://www.Stone.ca and when I purchased that name in the aftermarket sure some might say I paid a bit too much but I KNOW the name paid for itself in one order. Business’s need an online identity and if you are a brick and mortar business without an online presence you will perish. Ask Amazon how they are doing online.
We are escaping the snow in Florida and I am amazed at how cheap real estate is down here even with our peso Canadian dollar. Are we buying anything?? No way because once this baby bursts properties will be even cheaper. Crazy times, just be on the right side of the mess.
Cheers!
http://davidstockmanscontracorner.com/big-short-redux-non-bank-and-low-downpayment-mortgages-soaring-again/
Another thing Chinese end users totally get that western end users still do not understand is the obvious value of the best and the shortest .com possible. In the west, majority of large end users still would not even pay $5k for their perfect LL.com. In China, there is clearly a race to get the best and the shortest .com possible.
Imagine where prices would be today if every single large business in the US plus Europe made acquiring the shortest .com a real high priority starting 15 years ago. That is where we are with China, bit only 2 years in. Prices on blue-chip .com domains still have 5-10 years of large appreciations ahead.