Chinese ADRs Are Crashing On Tuesday
The Chinese government took drastic action this week to support its crashing stock market.
The Shanghai Composite has fallen 23 percent over the past month. To limit downside and restore confidence in its markets, the government has already implemented measures to help the country's top brokerages to buy close to 120 billion yuan ($19.3 billion) in stock to help prop up the market.
Despite the government's initiative, many Chinese based companies are suspending their stocks from trading. Business Insider cited other media reports that are claiming over 200 companies suspended their shares from trading.
An estimated 651 companies have decided to suspend their trading since June 29. This amounts to around 23 percent of the combined Shanghai and Shenzhen exchanges. There is no reassurances that the list won't continue to grow.
With confidence in the Chinese market plummeting, investors are scrambling to sell Chinese-based stocks listed on U.S. markets.
One of the most notable Chinese based companies, Alibaba Group Holding Ltd (NYSE: BABA) saw its shares trade lower by more than 4 percent at $76.21 during Tuesday's session on significantly heavy volume, marking the lowest level it has ever traded it since its IPO. At the same time, shares of JD.com, Inc (ADR) (NASDAQ: JD), a competing online retailer, saw its shares lower by only 3.03 percent at $30.92.
PetroChina Company Limited (ADR) (NYSE: PTR), an oil and gas producer and seller with a behemoth market cap of nearly $350 billion, saw its shares trading lower by 3.92 percent at $104.44. At the same time, China Petroleum & Chemical Corp (ADR) (NYSE: SNP), a massive energy and chemical company with a market cap of more than $125 billion, saw its shares lower by 4.14 percent at $79.50.
Investors appeared to be mixed on internet based companies as shares of Baidu Inc (ADR) (NASDAQ: BIDU), a search provider, were lower by 1.67 percent at $185.88. On the other hand, shares of SINA Corp (NASDAQ: SINA), an online media company, lost 6.60 percent and traded at $43.60.
In addition, shares of Youku Tudou Inc (ADR) (NYSE: YOKU), an internet television company, plunged 8.74 percent to $18.70.
Finally, shares of Ctrip.com International, Ltd. (ADR) (NASDAQ: CTRP), a travel service provider, plunged to $63.00 before rebounding to $68.86, down 3.73 percent on the day.
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