Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: Other Chinese dot-com companies, like Baidu
Now what: The Chinese government currently has regulations against foreign investment in certain sectors. Commerce Ministry spokesman Shen Danyang said the structure "so far does not have a law, regulation, or policy governing it. The Commerce Ministry and relevant departments are jointly researching how to regulate this method of investment." Shortly after, Susquehanna analysts indicated that SINA and Baidu wouldn't be subject to a potential new regulation, helping shares recover. Chinese Internet stocks have a bad habit of grouping together, sometimes unjustifiably. On top of that, they are notoriously volatile. I wouldn't jump to any hasty conclusions on today's move.
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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of SINA and Baidu. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.