Here’s Why Chinese Internet Shares are Game Over Mid-Day: BIDU, SINA, SNDA, YOKU, NTES, DANG, RENN
Rumors have been doing the rounds that the DOJ, SEC and FBI would be investigating Chinese companies such as Baidu (NASDAQ:BIDU) and Sina (NASDAQ:SINA) for accounting fraud. Not surprisingly, shares of Chinese Internet companies have been sliding since yesterday: Shanda Interactive (NASDAQ:SNDA), Youku.com (NYSE:YOKU), Netease.com (NASDAQ:NTES), Dangdang Inc. (NYSE:DANG), and RenRen (NYSE:RENN).
This week’s news comes after last week shares tanked after Sina’s decision to fall in line with the Chinese government’s directive to regulate the company’s Weibo micro-blogging service. The government’s action stems from its objective to censor internet chatter and prevent internet users from becoming an agitating force.
BIDU (NASDAQ:BIDU) is trading at $104.61 today, down 5.15%. Shares are up 7.47% in one year. The stock’s trading range for the year is between $94.33 and $165.96.
Investing Insights: Is China Crushing These Luxury Brands?