Weibo (WB) shares tumbled 5.12% in pre-market trading on Monday, as Chinese ADRs and ETFs faced a broad sell-off amid escalating trade tensions between the United States and China. The decline in Weibo's stock price reflects growing investor concerns about the impact of the trade war on Chinese companies listed in the US.
The sell-off was triggered by China's announcement of retaliatory tariffs on US imports, following the US implementation of over 50% tariffs on Chinese goods. This tit-for-tat escalation has heightened fears of a widening trade war that could potentially lead to a global economic slowdown or even a recession. Chinese tech giants and other sectors are particularly vulnerable to these trade tensions, as evidenced by the sharp declines across various Chinese ADRs.
Other major Chinese stocks also experienced significant drops in pre-market trading. XPeng and NetEase fell 14%, while e-commerce giants Alibaba and JD.com saw declines of 11% and 10% respectively. The leveraged ETF YINN, which tracks Chinese stocks, plummeted by 24%, underscoring the severity of the market reaction. As the trade dispute continues to unfold, investors will be closely watching for any signs of de-escalation or potential support measures from Beijing to shore up Chinese exporters and the domestic economy.
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