Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Sina Corporation's Shares Slid 11% in March

By Chris Neiger – Updated Apr 11, 2018 at 2:31PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Fears of a trade war caused some Chinese tech stocks to nosedive.

What happened

Sina Corporation (SINA) fell 10.8% last month, according to data provided by S&P Global Market Intelligence, on news that President Trump might start a trade war with China. China-based Sina and other Chinese tech stocks saw their share prices fall in near-lockstep as economic tensions rose between the two countries.

So what

Sina's shares were relatively flat throughout most of March, until President Trump said toward the end of the month that he would impose up to $60 billion worth of trade tariffs on goods coming from China. The stock dropped nearly 7% the day the tariffs were announced.

Stock chart with a yellow arrow moving down.

Image source: Getty Images.

The Trump administration also said that the Treasury Department would restrict China's ability to invest in American technology companies. That move comes as the U.S. government grows increasingly concerned about China's ownership of important intellectual property.

Sina doesn't have much to do with the new tariffs nor the intellectual property concerns the U.S. government has, but investors were likely spooked by the turbulence between the two economic superpowers.

Now what

Shares of Sina are still down in April, and it's likely there could be more volatility for Sina and other Chinese tech stocks as the U.S. and China hammer out new trade deals. Just this week, China's president, Xi Jinping, said his country will improve intellectual protection for foreign companies. But investors should keep in mind that there will likely be more back-and-forth exchanges ahead between the two.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Sina. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

SINA Corporation Stock Quote
SINA Corporation
SINA

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
327%
 
S&P 500 Returns
105%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.