Munster Defends SINA (SINA) as Investors Selling Amid Weibo Warning

Shares of SINA (Nasdaq: SINA) are down nearly 7 percent Wednesday morning following an "official" warning from Secretary Liu Qi of the Beijing Municipal Party Committee related to its Weibo site.

Details of exactly what the warning contained are sparse.

The reaction in the stock this morning, however, shows investors are clearly selling first and asking questions later. Traders may be speculating the Chinese government could shut Weibo down completely.

Piper Jaffray's Gene Munster believes this will not happen, at least over the near term. Munster feels SINA wholly cooperates with Chinese officials probing into the information relayed on the social networking site.

Munster maintains an Overweight rating and $139 price target on shares of SINA.

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