PDD Holdings Inc (PDD) stock plummeted 5.01% on Tuesday, reflecting the broad sell-off seen in Chinese American Depositary Receipts (ADRs) during the overnight trading session.
The decline in PDD Holdings' stock was primarily driven by concerns over China's economic growth prospects. Several reports indicated that China ADRs and exchange-traded funds (ETFs) tracking Chinese indexes faced significant selling pressure overnight.
The sell-off was exacerbated by a sharp drop in the China A50 index futures, which fell 3.6% after a 4.6% rally in the previous session. This volatility in the Chinese market impacted sentiment towards companies like PDD Holdings, leading to a substantial decline in their share prices.
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