Chinese regulators ordered Weibo Corp (ADR) (NASDAQ: WB) and other social media sites to shut down audio-visual services Wednesday.
The State Administration of Press, Publication, Radio, Film and Television said Weibo was operating without the proper license, publishing
content not in-line with government regulations, and promoting negative comments.
The news sent Weibo shares down 11 percent in the pre-market session.
Other Chinese social media stocks quickly followed including SINA Corp (NASDAQ: SINA), which fell 7.6 percent, and Momo Inc (ADR) (NASDAQ:
MOMO), down 4.4 percent.
Alibaba Group Holdings Ltd (NYSE: BABA)
also nudged downward 0.8 percent. The e-commerce giant holds a major stake in Weibo.
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