CCTV Script 17/04/14


— This is the script of CNBC's news report for China's CCTV on April 16, Thursday.

Welcome to the CNBC Business Daily.

Weibo - or "China's Twitter" - will list on the Nasdaq tonight, under the ticker symbol "WB".

It's priced at 17 dollars a share - that's at the bottom of its 17 to 19 dollar range - valuing the company at just shy of 3.5 billion dollars.

The company's losses doubled on year in the March quarter .. and revenues, while more than double what they were a year ago, fell 5% on quarter.

Question is - is it worth buying into Weibo?

[RETT WALLACE / Co-Founder & CEO, Triton Research] "What we find interesting is that Weibo is really a media company. Some of these companies that it's really compared to are really communication companies where people write to each other."

"So as long as people are reading Weibo, their advertising base is intact, it's true that Chinese users, just like users all over the world change their behavior on a very rapid basis, which is why Facebook can pay $19 billion for a company that nobody had heard of a year ago. And that's one of the things that makes this thing so very exciting and also interesting for investors. That the shifting sands of user behavior on one hand, and the competitive dynamics on the other make it hard to figure out exactly what the future will look like."

And as for the value of this IPO pricing?

[SAM HAMADEH / CEO, PRIVCO] "This is one of the most underpriced IPOs we've seen in years. You've got social, mobile, China all at once. It's beautiful."

[LI JUNHENG / Head of Research, JL Warren Capital] "I think it's pretty fairly valued. I think the market sentiment has changed a lot over the past few months. If you look at the performance of Facebook and Twitter over the past 3 weeks, Facebook down 40%, Twiter down 20%. So it's just a bad timing. A bad market."

The IPO does come at a tough time - aside from the pressure on tech stocks, analysts are also concerned about growing competition from Tencent's WeChat.

Also stealing Weibo's thunder, and possibly investor dollars - upcoming Chinese ecommerce IPOs like and, of course... the IPO we've all been waiting for.

[LI JUNHENG / Head of Research, JL Warren Capital] "Alibaba is coming up. It's a big IPO. It's the largest e-commerce on the face of the planet. So Weibo has to go before Alibaba. Otherwise Ali is going to suck up all the cash from investors."

Reuters sources say on the back of stellar earnings, as detailed in Yahoo's results yesterday, Alibaba could finally file its US IPO next week.

It's believed the company would look to raise as much as 16 billion - but valuation is hard to pin down - it's currently anywhere between 100 and 250 billion dollars.

That wraps up this edition of the Business Daily.

I'm Julia Wood, reporting from CNBC's Asian headquarters.

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