Chinese regulators ordered Weibo Corp (ADR) WB and other social media sites to shut down audio-visual services Wednesday.
Chinese Media Regulator Shuts Down @SinaWeibo ’s Video Services for Operating Without License https://t.co/nzCvg8sefF pic.twitter.com/4CZQ61QqTI
— Yicai Global 第一财经 (@yicaichina) June 22, 2017
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 SINA, which fell 7.6 percent, and Momo Inc (ADR) MOMO, down 4.4 percent.
Alibaba Group Holdings Ltd BABA also nudged downward 0.8 percent. The e-commerce giant holds a major stake in Weibo.
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