Weibo (WB) shares plummeted 5.81% in Monday's trading session, as Chinese ADRs and ETFs faced a broad sell-off amid rapidly escalating trade tensions between the United States and China. The significant decline in Weibo's stock price reflects growing investor concerns about the potential impact of the trade war on Chinese companies listed in the US.

The sell-off was not limited to Weibo, as other major Chinese stocks also experienced sharp declines. XPeng and NetEase fell 14%, while e-commerce giants Alibaba and JD.com saw drops of 11% and 10% respectively. The leveraged ETF YINN, which tracks Chinese stocks, plummeted by 24%, underscoring the severity of the market reaction to the trade dispute.

The market turmoil was triggered by China's announcement of retaliatory tariffs on US imports, following the US implementation of over 50% tariffs on Chinese goods. This tit-for-tat escalation has heightened fears of a widening trade war that could potentially lead to a global economic slowdown or even a recession. Adding fuel to the fire, US President Donald Trump threatened to impose an additional 50% tariff on China if Beijing does not withdraw its retaliatory measures. As the trade dispute continues to unfold, investors will be closely watching for any signs of de-escalation or potential support measures from Beijing to shore up Chinese exporters and the domestic economy.