Shares of tech company Sina Corp. (NASDAQ:SINA) tanked after it agreed to tighten control over its Weibo microblogging service. This comes at the request of the Chinese government as the Communist Party is fighting a tough battle with the increasing Internet chatter and gossip in China (NYSE:FXI).
Sina Corp. (NASDAQ:SINA) will face the challenge of customers flocking to similar Twitter-like services. This wasn’t the first time the company faced pressured to monitor its content. In August, the government gave the company a veiled warning to “put an end to fake and misleading information” on its micro-blogging service.
Sina’s stock (NASDAQ:SINA) closed down 15.17% to $92.76 on the news. Shares are up 40.08 % year to date. The stock has traded in a 52-week range between $48.14 and $147.12.
Other Chinese Internet stocks got blasted on fears of government interference: Baidu(NASDAQ:BIDU), Sohu.com (NASDAQ:SOHU), Shanda Interactive (NASDAQ:SNDA), Youku.com (NYSE:YOKU), Netease.com(NASDAQ:NTES), Dangdang Inc. (NYSE:DANG), and RenRen (NYSE:RENN).