The Shanghai Composite fell more than 6% on Tuesday amid concerns that the Chinese government would not intervene in the economy, the Wall Street Journal reports.
Investors sold off shares on expectations that state-backed funds would not buy shares towards the end of the trading day and provide a boost to stocks, according to the Journal.
"The backdrop of all this is the fact that economic fundamentals remain pretty weak and the overall downward trend of the market looks intact," Deng Wenyuan, analyst at SoochowSecurities, told the Journal.
U.S.-traded Chinese stocks such as JD.com (JD) and Baidu (BIDU) are also declining in mid-morning trading on Tuesday.
Based in Beijing, SouFun operates as a real estate Internet portal in China.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
You can view the full analysis from the report here: SFUN