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

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

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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.

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