Chinese Internet Stocks Higher Despite Temporary Government Shut Down (DANG) (SINA) (RENN)
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Shares of Chinese Internet companies are performing well Monday despite news Chinese officials will keep a closer eye on micro blog comments as a political shift in the country is approaching. As reported earlier, China has imposed a temporary ban on user comments over the next three days ahead of the expected political shift later in the year.
SINA Corp. (Nasdaq: SINA) and rival Tencent had their micro blogging sites shut down over the weekend. Both the sites have a combined 250 million users.
The political shift atop the ranks in China isn't exactly a smooth one, causing heightened tensions among the parties. According to reports, about six citizens were arrested for "fabricating or spreading" online rumors while the government shut down 16 websites.
In addition to heavy short interest in the Chinese Internet group as a whole, traders have noted the temporary shutdown may have already been largely priced into these stocks.
Into mid-day trading Monday, SINA shares are trading 0.6 percent lower, Renren (NYSE: RENN) shares are up 4.7 percent, Baidu (Nasdaq: BIDU) shares are up 1.7 percent, and Jiayuan.com (Nasdaq: DATE) shares are 2.5 percent better. Shares of E-Commerce China Dangdang (NYSE: DANG) are the early winner, up over 10 percent.
SINA Corp. (Nasdaq: SINA) and rival Tencent had their micro blogging sites shut down over the weekend. Both the sites have a combined 250 million users.
The political shift atop the ranks in China isn't exactly a smooth one, causing heightened tensions among the parties. According to reports, about six citizens were arrested for "fabricating or spreading" online rumors while the government shut down 16 websites.
In addition to heavy short interest in the Chinese Internet group as a whole, traders have noted the temporary shutdown may have already been largely priced into these stocks.
Into mid-day trading Monday, SINA shares are trading 0.6 percent lower, Renren (NYSE: RENN) shares are up 4.7 percent, Baidu (Nasdaq: BIDU) shares are up 1.7 percent, and Jiayuan.com (Nasdaq: DATE) shares are 2.5 percent better. Shares of E-Commerce China Dangdang (NYSE: DANG) are the early winner, up over 10 percent.
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