Chinese stocks, which include some etfs like $FTSE China Bull 3X Shares(YINN)$broadly fell yesterday on news that china imposed fines on $Alibaba(09988)$$TENCENT(00700)$because of their anti monopoly guidelines violations. The transactions that were reviewed include Alibaba's acquisition of Best Inc, Tencent's purchase of Okaybuy (China) Holding Inc, as well as Ping An Healthcare And Technology Co's establishment of a joint venture with SoftBank. Before you jump into conclusion and make remarks that china regulators are being unreasonable, do take note of the following 3 points:

1. These are past transactions that were concluded and this is more akin to a post M&A review by State Administration for Market Regulation (SAMR), the country's top market regulator.

2. Sources mentioned that a fine of 500,000 yuan ($74,700) each on companies including Alibaba Group, Tencent Holdings and SoftBank Corp for violating the Anti-Monopoly Law. The fine amount is really a non-event compared to the earnings of the companies and probably not much vs the total amount that investors lost last night as a result of the selldown.

3. The Anti-Monopoly Law has 3 broad key headings (below) which I think it's crucial for a competitive environment. Just because some huge nations fail to protect the smaller businesses should not mean China is wrong in trying to do more to create a more conducive landscape for the smaller guys (more like shame on you for selling down the Chinese stocks for a positive move by market regulators)

i) anti-competitive agreements between undertakings;

ii) abuse of a dominant position; and

iii) mergers that may have the effect of eliminating or restricting competition.

Anyway Chinese eVs were sold off too and they had nothing to do with the fine. If there's any chance of Fed giving a less hawkish remark later (although it depends more on how the so called top analysts interpret it), one should buy some of these chinese etfs to get a more diversified exposure from US stocks.