Chinese ADRs Drop Again As Traders Remain Wary of the Rapid Gains in Recent Weeks
Chinese ADRs dropped again in overnight trading as traders remained wary of the rapid gains in recent weeks. YINN fell 4%; KE Holdings fell 3%; Tencent Music, NetEase, PDD Holdings, Li Auto, Alibaba, and XPeng fell 2%; iQiyi fell 1%; JD.com and Bilibili fell 0.7%; NIO fell 0.6%.
Shares of major Chinese tech and consumer stocks tumbled on Thursday. Direxion Daily FTSE China Bull 3X Shares (YINN) fell 9%; NIO fell 9%; XPeng fell 7%; Bilibili and Tencent ADR fell 5%; iQiyi, Alibaba, JD.com, Baidu, and Trip.com fell 4%; Li Auto fell 3%; NetEase fell 2%. While PDD Holdings rose about 4% after earnings.
The across-the-board move indicates that the declines had to do with Chinese stocks broadly and not individual stock news. Most likely, the downdraft was caused by disappointment over action -- or rather inaction -- by China's central bank. In addition, a Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking.
China's central bank held rates steady yestoday, which may have been a disappointment.
Meanwhile, analysts at Bank of America cautioned that a correction could be coming for Chinese stocks.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Most Discussed
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10