Weibo Corporation, the Chinese social media platform, saw its shares plummet by 5.26% in pre-market trading on Monday, as part of a broader sell-off in Chinese stocks listed on U.S. exchanges.
The decline in Weibo's stock price followed a report that American Depositary Receipts (ADRs) of major Chinese tech giants, including Alibaba and JD.com, tumbled around 5% on Monday morning. This downturn in Chinese ADRs appears to have been driven by lingering investor concerns over various factors, such as regulatory uncertainties, economic growth prospects, and geopolitical tensions.
As a prominent Chinese company with a significant presence in the U.S. market through its ADR listing, Weibo was caught up in the overall negative sentiment surrounding Chinese stocks. Investors may have been cautious about the potential risks and challenges faced by Chinese firms operating in the U.S., leading to the sell-off in Weibo's shares.
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