Shares of JD.com, one of China's leading e-commerce companies, plummeted by 6.16% on Monday, caught in a broader selloff of Chinese stocks listed on U.S. exchanges. The steep decline followed disappointing announcements from China's finance ministry regarding its plans for fiscal stimulus, which left investors seeking more concrete details.
Over the weekend, the finance ministry stated its intention to increase borrowing, but failed to provide specific figures or timelines, frustrating investors who were anticipating a more comprehensive stimulus package. According to Caixin Global, China may raise an additional 6 trillion yuan ($850 billion) over three years to fund economic stimulus efforts, but the lack of clarity has fueled uncertainty in the markets.
Adding to the negative sentiment, a Reuters poll suggests that China's economy is likely to expand by 4.8% in 2024, missing the government's target. This projected shortfall in economic growth has further dampened investor confidence, leading to a selloff across various sectors, including e-commerce, electric vehicles, and technology.
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