© Reuters. U.S. Listed Chinese Stocks Tumble On Concerns About Xi’s Third Term
By Sam Boughedda
Chinese companies listed on U.S. exchanges experienced a sharp decline on Monday due to investor worries that Chinese President Xi Jinping’s policies, which have resulted in a slowing economy, will continue.
Xi Jinping was confirmed as leader of the CCP for a third five-year term. There has been a departure of what some have described as pro-stimulus officials and reformers in a leadership reshuffle, causing concern that a further crackdown on technology companies will continue.
The reshuffle has spooked investors, alongside a slowing Chinese economy, with Chinese equities tumbling on Monday (the fell over 2%) while the Chinese also weakened. In addition, Hong Kong’s fell 6.4%, marking its most significant daily decline since November 2008.
Although that the Chinese economy grew more than anticipated in the third quarter, the pace of growth was well below the annual growth target.
Among some of the U.S.-listed Chinese companies, electric vehicle stocks Nio Inc (NYSE:), Xpeng Inc (NYSE:), and Li Auto Inc (NASDAQ:) are all down significantly at -17%, -13%, and -19%, respectively, at the time of writing.
In addition, other names, such as Alibaba (NYSE:) -15%, Baidu (NASDAQ:) -13.5% and JD.com (NASDAQ:) -14.5%, have also tumbled.
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