Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Technology
BRIAN DEAGON

Chinese Stocks Tumble As Hope For Better Times Proves Fleeting

Chinese stocks tumbled Monday, including internet giants such as Alibaba, Baidu and JD.com, despite upbeat comments by government officials last week.

The positive comments from Chinese officials, which indicated that a regulatory crackdown would ease, led to double-digit stock growth at Alibaba, Baidu and JD.com. Other stocks that soared on the news included Pinduoduo, Bilibili and Tencent Holdings.

China officials also said they planned to support overseas stock listings and build stability in capital markets.

That fueled the best growth in these stocks since 2008, but then the rally fizzled.

Plunge In Chinese Stocks

And once the jubilation ended, the stocks started plunging again Monday. Alibaba stock dropped 4.4%, closing at 103.59 on the stock market today. JD.com stock sank 5.7% to 61.44, while Baidu lost 1.6% to 146.68.

In addition, Pinduoduo fell 6.1% to 39.99, Bilibili plunged 9.6% to 24.91 and Tencent Holdings had not yet officially closed but was down 7.1% to 48.01.

This past year has been rocky for holders of Chinese stocks. Many of the large internet stocks saw their market value cut in half over the past 12 months.

The stocks repeatedly took a beating due largely to regulations, Covid-19 fears and macroeconomic concerns.

Analysts pointed to three main drivers for the reversal. First, there are renewed concerns over potential de-listings for Chinese shares trading in New York.

Further, a resurgence in Covid-19 cases is taking place in major mainland cities. Also, concerns persist over the possibility of China providing support to Russia in its invasion of Ukraine.

Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.