Sina In Trouble With The Censors

One of the troubles with investing in Chinese Internet companies: the government can change the rules or enforce regulations on a whim.

IBD: Sina, Weibo Down On Reports Of China Sanctions
Xinhua did not provide specifics on which of Sina's news offerings concerned government censors, but said the Cyberspace Administration of China (CAC) has accused Sina of spreading "illegal information related to rumors, violence and terrorism," and "advocation of heresies."

In the past, China officials have used "heresy" to refer to content related to banned religious groups, such as the Falun Gong.

Sina "distorted news facts, violated morality and engaged in media hype," according Xinhua, quoting the CAC.

The CAC will "seriously" punish Sina with measures that could include a complete shutdown of its Internet news services, Xinhua said.
I like the next headline:

Xinhua: Sina faces suspension over lack of censorship
Since the beginning of the year, the administration has received 6,038 complaints about Sina, more than any other web portal. It said the reports indicated that "Sina has spread illegal information related to rumors, violence and terrorism, pornography, swindling, advocation of heresies and has distorted news facts, violated morality and engaged in media hype."

Weibo stock fell following the news release on Monday, but shares are up in recent days thanks to the spread of the China stock mania.

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