Shares of Bilibili Inc., a popular video streaming platform in China, plummeted by 9.38% on October 15, 2024, amid a broader sell-off in Chinese stocks traded both domestically and on U.S. exchanges.
The sharp decline in Bilibili's stock price was driven by investor concerns over China's economic growth prospects and the lack of clarity surrounding the government's plans for fiscal stimulus measures. Specifically, the Chinese finance ministry's announcement on Saturday about increasing borrowing, without providing details on the timing or the extent of the stimulus, disappointed investors and fueled uncertainty.
According to a Reuters poll, China's economy is now expected to grow by only 4.8% in 2024, missing the government's target. This gloomy economic outlook, coupled with the absence of concrete details on stimulus measures, prompted investors to step back and reassess their positions in Chinese equities, leading to widespread selling across various sectors.
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