Chinese Internet Stocks Get Eviscerated

Chinese internet stocks are getting slammed on Tuesday and have been falling hard over the last 5 trading sessions. Last Friday, there was some chatter that there could be accounting irregularities at SINA Corp.

. Those rumors caused that stock to plunge on heavy volume. Investors are extremely wary of Chinese stocks right now after a string of reverse-merger Chinese companies trading on American exchanges turned out to be frauds. Cautious sentiment is weighing heavily on leading names today. SINA has lost another 5% and is trading at $103.23. Baidu.com

is down 3.50% to $122.42, while E Commerce China Dangdang

is off by 7.63% at $15.14. Rounding out the group is Youku.com

and Sohu.com

, which are down 8.74% and 4.73% respectively.