TOM Online withdraws from NASDAQ

TOM Online will become the first Chinese dotcom company to withdraw from both the Hong Kong and NASDAQ stock exchanges, News Beijing reported (in Chinese). Parent company TOM Group announced that TOM Online's privatization proposal was nearly unanimously approved at a recent general shareholder's meeting. TOM Group CEO Tong Mei Kuen explained that China's uncertain policies from wireless operators have caused its wireless value-added services to decline. The privatization is expected give the company more leeway to make long-term investment decisions. TOM Online showed a US$9.56 million net loss in the second quarter. The paper quoted a Morgan Stanley analyst as saying privatization is the only way to make up the loss.