SouFun Holdings Shares Plunged: What You Need to Know
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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