Sina Corp and Sohu.com Weakness Could be Attributed to Chinese Fraud Claims in Perfect World

Shares of Sina Corp

and Sohu.com

are under pressure today because of the fraud claims on Perfect World

, in which shares of Perfect World are tanking 25%.

on the Chinese article, "At present, and the United States government's regulatory agencies and the judiciary have also launched the "Beijing Perfect World Network Technology Co., Ltd." and Michael Chi, Chairman and General Manager of a full investigation... U.S. securities regulators and the judiciary is investigating the main content." In correlation, other Chinese-based online gaming companies are also seeing weakness as Sina Corp and Sohu.com both trade lower. Shares of SINA are trading down nearly 3% at $47.25 and SOHU shares are lower by about 2% at $48.27. Both companies engage in brand advertising, online gaming, sponsored search, and wireless businesses in China. Currently, shares of Perfect World are trading 23% lower at $9.14.