China Internet Regulatory Scare
EM Chinese Internet Index -4.5% today as there is a story circulating that an SEC judge is suspending Chinese units of the Big Four accounting firms from auditing US Listed companies for 6 months.
Remember the last time SEC accounting questions surfaced it led to a sharp selloff in the Chinese internet name, which was a buying opportunity.
In December 2012 we had a similar ruling, which led to 20% declines in the sector. Today, Street analysts are saying a similar move is coming.
What is scarier is that this announcement is coming after these stocks have doubled from that point.
No need to step in and buy.