U.S.-listed Chinese stocks are nosediving in the premarket session on Monday amid fears over President Xi Jinping maintaining dominance following the weeklong Party Congress that concluded on Saturday.
Fears of more stringent regulations are pushing these stocks deeper into the red. The China and Hong Kong market plunged earlier in the day. The Hang Seng Index plummeted to a 13-year low, dropping over 1,000 points before settling at 15,180.69.
Xi, who has won a historic third five-year term, named his key allies to the Politburo standing committee — China’s most powerful political body. He also called for regulating the mechanism of wealth accumulation, with reference to the common prosperity agenda and private capital.
In premarket trading:
- Alibaba Group Holding Limited BABA plunged to a six-and-a-half-year low at $63.17, down 12.48%.
- JD.com JD plunged 15.59% to $35.38.
- Pinduoduo, Inc. PDD moved down 15.79% to $49.66.
- Nio, Inc. NIO dropped 10.35% to $10.05.
- XPeng, Inc. XPEV fell 1.07% to $7.23.
- See also: Xi Jinping Cements Dominance With Historic 3rd Term, Tesla Cuts China Prices, Analyst Says Bitcoin Priming For 'Party' And More: 5 Key Stories You May Have Missed From The Weekend
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