Stock Watch: IPO Rockets

Most Americans might not know much about Asian destination site and Internet service provider (Nasdaq: CHINA), which has been compared to both America Online (Nasdaq: AOL) and StarMedia (Nasdaq: STRM). That, however, didn’t prevent from being the darling of Wall Street when it went public on Tuesday.

Shares of went public at $20 and gained 47-7/64 to close the day at 67-7/64, a gain of nearly 236 percent.

Some observers aren’t exactly excited about the fact that the Chinese government owns part of The company’s big opening gain came despite a negative piece in Newsweek about the company.

Investors might be encouraged by the fact that AOL also has a stake of the company, but Newsweek’s Allan Sloan argues that the offering “has more red flags flying than Tiananmen Square on National Day. Ignore them at your peril.” It looks like Sloan has been largely ignored. Things could get ugly if he ends up being right.

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