Oct 24 (Reuters) – Shares of Chinese companies listed in the United States fell on Monday after President Xi Jinping’s new leadership team raised investor concerns about prioritizing ideology-driven policies over private sector growth.
E-commerce giants Alibaba and JD.com as well as internet giant Baidu crashed between 14% and 17%, even with the S&P 500 (.SPX) rose higher.
iShares MSCI China ETF (MCHI.O) by 10%, tracking its largest one-day drop ever.
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said Rick Meckler, partner at Cherry Lane Investments in New Vernon.
“By consolidating his power, Xi will likely encounter little opposition to this form of nationalizing corporate interests.”
Chinese President Xi Jinping votes during the closing ceremony of the 20th National Congress of the Communist Party of China, at the Great Hall of the People in Beijing, China, October 22, 2022. REUTERS/Tingshu Wang
Earlier in the day, Hong Kong shares fell 6.4% to 13-year lows and China’s blue-chip stocks slumped. (.CSI300) It fell 2.9% as investor concerns about the direction of the world’s second-largest economy overshadowed upbeat growth data for the third quarter.
Xi secured an unprecedented third term of leadership on Sunday and introduced the new Politburo Standing Committee packed with loyalists.
A strategist at TD said the papers.
Tencent Music streaming music provider, Pinduoduo e-commerce platform (PDD.O) Mobile game publisher Bilibili fell between 16% and 33%.
Electric car companies Nio Inc, Xpeng and Li Auto fell between 23% and 30%.
Tesla also weighed down electric car makers (TSLA.O) It cut starting prices for its Model 3 and Model Y cars in China for the first time this year, indicating signs of waning demand in the world’s largest auto market. Read more
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(Reporting by Medha Singh in Bengaluru), Additional reporting by Bansari Mayur Kamdar; Edited by Magu Samuel and Sriraj Kalovila
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