China ETFs, Tech Stocks Looking Plungy

The bottom chart is the 3X Daily Inverse China fund, YANG.

Here are some tech-related China stocks listed in the U.S. Alibaba (BABA), CTrip (CTRP), Fang Holdings (SFUN), Weibo (WB) all display topping patterns, Jingdong (JD) and Netease (NTES) already breaking down.

China Races Ahead In Financial Innovation

Bloomberg: A Hundred Apps Bloom in China as Millions Bank on Their Phones

Financial innovation is bubbling up around the globe, but China is where digital banking, investing, and lending have gone mainstream. Technology companies armed with financial apps are challenging banks and other intermediaries for a market with 1.3 billion people and $7.8 trillion of deposits. Tencent’s WeChat (called Weixin in Chinese), Alibaba’s Alipay arm, and Baidu are leading the way with digital wallets that let consumers manage their money via their phones.

“Financial innovation is being discussed everywhere—in New York, London, San Francisco, Hong Kong,” says Zennon Kapron, managing director of Shanghai-based consulting firm Kapronasia. “But mainland China is where it has gone beyond talk and is really having an impact. What we’re seeing here is the future of global banking.”

...Song Fuqiang, who lives about 370 kilometers (230 miles) from Beijing in Hebei province, owns a textile business and uses Alipay every day. The 31-year-old has even put about 40,000 yuan into Alibaba’s money market fund, Yu’E Bao. “Checks are so outdated, so few people use them,” he says. “I don’t bring money when I go out. I use Alipay to pay for everything.”

The irony is China is probably the least friendly to banking competitors because the industry in mainly state-owned. While these firms may do well, the government will tilt the playing field in favor of the SOEs.

NYT: Disney, Time Warner and Other Media Shares Fall as Investors Worry About TV’s Future

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.