SouFun Holdings Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of China's SouFun Holdings (NYS: SFUN) , which runs an Internet portal dedicated to real estate in the region, fell more than 11% in early trading after officials introduced a price cap on apartments in the industrial city of Zhuhai, The Wall Street Journal reports.

So what: The announcement comes days after SouFun reported lower housing prices throughout China. Regulators have publicly expressed a desire to keep real estate affordable in the Sino superpower, which may help to explain the crackdown in Zhuhai.

Now what: Yet location could also be a factor. Zhuhai borders Macau, the Asian gambling mecca that has been a boon to the likes of Melco Crown Entertainment (NAS: MPEL) and Wynn Resorts (NAS: WYNN) . Regulators could fear an influx of foreign money boosting prices. Do you agree? Or has the sell-off created a buying opportunity? Please weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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