The U.S.-listed shares of China-based companies took broad beating Monday, as China President Xi Jinping’s moves to consolidate power fueled fears that current policies that have led to a slowing economy will continue.
Chinese leader Xi was named over the weekend to a third, five-year term as general secretary, ignoring the custom of stepping down after two terms, as the Associated Press reported. Xi also dropped No. 2 leader Premier Li Keqiang, a proponent of market-style reform and private enterprise, from a seven-member Standing Committee in favor of stronger Xi allies.
That spooked investors already reeling from a slowing economy, amid fears over the current zero-COVID policy that has led to lockdowns, and uncertainty over whether the crackdown on technology companies will continue.
The iShares China Large-Cap exchange-traded fund FXI,
That follows a 6.4% plunge in Hong Kong’s Hang Seng HSI,
Also, while data showed that the Chinese economy grew more than expected in the third quarter, the pace of growth year to date remained well below the annual growth target. “The [growth] gap is due to China’s impossible COVID-zero mission, which has been confirmed and cemented with Xi’s third term in office,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Among the more-active China-based companies trading in the U.S., shares of electric vehicle maker Nio Inc. NIO,
Among other EV makers, shares of XPeng Inc. XPEV,
Ecommerce giant Alibaba Group Holding Ltd.’s stock BABA,
Elsewhere, shares of Tencent Music Entertainment Group slid 14.2%, JD.com JD,
Source: finance.yahoo.com