Due to the stock market wobbles in the past few weeks, not only the market lost ground, but also brought disaster to some US- listed Chinese companies. Mecox Lane Limited, China’s leading online retailer of apparel and accessories(M18.com), who got listed on  NASDAQ for less than a year, has dropped from $17.26 to less than $ 2 now, resulting in Mecox Lane investeors Sina and China Dongxiang Group loss more than 69 million US dollars.

Mecox Lane (NASDAQ:MCOX) went public in the US last November as China’s first B2C stock. At its debut Mecox Lane is trading at $17.50, $6.5 higher than the IPO price. The closing price of Mecox Laneday is up to $17.26, raised 56.91%. Unfortunately, it actually became Mecox Lane’s highest price on NASDAQ–since then, the stock has dropped significantly.

On November 29, 2010, nearly one month after the IPO, Mecox Lane announced its third quarter financial results, which showed the company had a weaker-than-expected gross profit margin of 39.7 percent. Mecox Lane encountered several lawsuits by its U.S. investors for inaccuracies and misleading information in its IPO prospectus.

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Yasmin Li

Born in the generation after 80s and has MA degree in TEFL from Swansea University, UK. She loves travelling around and is interested in education, technology, environmental protection, creative designs,...