NetEase (NTES) shares tumbled 13.10% in pre-market trading on Monday, as Chinese stocks listed in the US face significant pressure. The dramatic drop comes amid a wider selloff affecting Chinese ETFs and ADRs, reflecting growing concerns about the Chinese market.
The decline in NetEase's stock price aligns with a broader trend observed in Chinese equities. The FTSE China A50 Index Futures fell nearly 4%, indicating substantial weakness in the Chinese market. Other major Chinese companies trading in the US also experienced significant drops, with PDD Holdings down 7%, JD.com and Li Auto both falling 5%, and e-commerce giant Alibaba declining 4%.
While the specific reasons for NetEase's outsized decline are not immediately clear, the company appears to be caught in the crossfire of negative sentiment surrounding Chinese stocks. Investors should monitor any company-specific news or broader geopolitical developments that could further impact NetEase and other Chinese ADRs as the trading day progresses.
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