Chinese regulators ordered Weibo Corp (ADR) WB and other social media sites to shut down audio-visual services Wednesday.
The State Administration of Press, Publication, Radio, Film and Television said Weibo was operating without the proper license, publishing content not in-line with government regulations, and promoting negative comments.
The news sent Weibo shares down 11 percent in the pre-market session.
Alibaba Group Holdings Ltd BABA also nudged downward 0.8 percent. The e-commerce giant holds a major stake in Weibo.