March 12, 2014 (Chinavestor) Chinese stocks fell along the market on Wednesday morning. Sinopec (NYSE:SNP) is down $2.67 but it's Baidu Inc. (NASDAQ:BIDU) that raises eyebrows. China's internet giant fell $1.54 this morning after a $6.06 decline a day earlier! SouFun holdings (NYSE:SFUN), 51 job Inc. (NASDAQ:JOBS) and CNOOC Ltd. (NYSE:CEO) is also among stock that continue to trade lower.
The following chart lists Chinese stocks that dropped the most in the first hour of trading on Wednesday. Sinopec (NYSE:SNP) fell hard but BIDU's weakness is more than troublesome. Baidu Inc. (NASDAQ:BIDU) fell over 6% since the run up on March 6. When industry leader falls, the rest typically follows. This explains weakness of Sina Corp. (NASDAQ:SINA) and 51 job Inc. (NASDAQ:JOBS).
CNOOC Ltd. (NYSE:CEO) fell $6.21, the most among major Chinese stocks on Tuesday. Baidu Inc. (NASDAQ:BIDU) followed CEO very closely. Again, industry leader set tone for the rest of the sector. Sina Corp. (NASDAQ:SINA) declined $1.84, the second most among internet stocks. SouFun Holdings (NYSE:SFUN) fell $.98.
Weakness of SouFun Holdings (NYSE:SFUN) is twofold. For one, BIDU is a pure pressure. Second, SouFun Holdings (NYSE:SFUN) ran up too much, too fast and became overbought. This is clearly indicated in the following chart.
And it wasn't just SFUN that had too much momentum. E Commerce China Dangdang (NASDAQ:DANG) was extremely overbought after a 70% run up in one week. Sure, DANG and SFUN came back significantly. Now it may be time to think of them again.