Shares of TAL Education Group (TAL) plummeted 14.26% in pre-market trading on Monday, as optimism surrounding potential stimulus measures from China faded after a senior government official failed to provide any details on the matter.
US-listed Chinese stocks had initially rallied after a week-long holiday in China, buoyed by expectations that the government would unveil measures to boost the economy. However, these hopes were dashed when Zheng Shanjie, chairman of the National Development and Reform Commission, did not provide any specific details on stimulus plans during a conference.
The disappointment over the lack of clarity on stimulus measures led to a broad sell-off in Chinese stocks across various sectors, including e-commerce, electric vehicles, gaming, online education, and online brokerages. In addition to TAL Education Group, other major decliners included Alibaba Group (-8.7%), JD.com (-11.7%), Li Auto (-11.5%), Nio (-12.5%), Bilibili (-15.7%), and Futu Holdings (-16.6%). Chinese ETFs tracking the Chinese markets also suffered heavy losses, with the iShares MSCI China ETF dropping 13%.
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