- China has launched cybersecurity reviews on the three companies and some of their subsidiaries. At the moment these companies are not allowed to register new users. The lack of growth from new users can leave negative fundamental changes to these high-growth companies.
- Douyu (NASDAQ:DOYU) and Huya (NYSE:HUYA) are also down after articles have surfaced on the web stating that China’s antitrust regulators will formally block the planned merger of these two companies.
- Before investing in Chinese companies, investors should have a plan and remember the risk. Limiting a portfolio to a set percentage exposure in a stock or even in a country can help long-term investors during these volatile times.
Click the video below for my full thoughts and analysis.
*Stock prices used were the midday prices of July 6, 2021. The video was published on July 6, 2021.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.