This wasn’t a particularly good day for Chinese software outsourcing stocks. VanceInfo (VIT) traded as low as US$4.90, while Longtop Financial (LFT) was as low as $13.03 today.

I’ve focused on these two companies, because they are the most direct way to track the acceptance of Chinese outsourcing as an investment thesis by the public equity markets.  While I was considering their recent performance, however, I also thought of a somewhat indirect way to observe this space.  eOn Communications Corp. (EONC) invested in The Symbio Group in August of 2007.  Since Symbio, like the vast majority of Chinese software outsourcing companies, is closely held, it’s difficult to get any real sense of what they might be worth.  I know that what I’m about to say isn’t sound from a stock analyst’s standpoint, but then I’m just a engineer…  Anyway, in light of the promised synergies, one could think of eOn’s performance as something of a proxy (albeit a somewhat tenuous one) for the perception of Symbio.  For those who are interested, eOn briefly traded at $.25 (yes, twenty-five cents per share) today.  `nuff said.

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