In just four trading days, Renren dropped almost below its IPO price. Yesterday, the stock fell another 8% to close at US$14.75, which is almost equal to IPO price of US$14.

The so-called China’s Facebook seems to be losing its luster.  In fact, as we have previously noted, besides a valuation too high, the company has other problems, too.  And it is doubtful whether it is really “China’s Facebook”.

But what is pushing the Chinese internet stock, including Renren, beyond their fundamentals, to ridiculous high valuation, at the first place??  I read a comment from SeekingAlpha, a popular U.S. website on trading stock.  The post is probably from a typical U.S. trader:

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Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...