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Cathie Wood Further Trims Stakes In Alibaba, JD, Pinduoduo Amid Heightened Concerns Over US-China Relations

Cathie Wood Further Trims Stakes In Alibaba, JD, Pinduoduo Amid Heightened Concerns Over US-China Relations

Cathie Wood-led Ark Investment Management trimmed exposure to Chinese companies as talks to improve the U.S.-China relationship continued to be in a stalemate.

What Happened: On Monday, Ark Fintech Innovation ETF (NYSE: ARKF) and Ark Space Exploration & Innovation ETF (BATS: ARKX) sold some shares in Alibaba Group Holding Ltd (NYSE: BABA).

See Also: How To Buy Alibaba (BABA) Shares

While ARKF sold 99,797 shares valued at approximately $19.14 million, ARKX sold 7,970 shares worth almost $1.53 million. Alibaba Shares closed 7.15% lower on Monday at $191.76 in the regular session.

ARKF, ARKX, and Ark Next Generation Internet ETF (NYSE: ARKW) also shed, Inc (NASDAQ: JD) shares.

ARKF sold 318,465 shares of valued at $21.04 million, while ARKW and ARKX sold 651,175 and 750 shares worth $43.03 million and $49,560, respectively. On Monday, shares closed 8.59% lower at $66.08 in the regular session.

Ark Invest also sold shares of Pinduoduo Inc (NASDAQ: PDD) on Monday. ARKF sold 116,153 shares of the Chinese retailer worth nearly $10.30 million. In regular trading,  Pinduoduo shares closed 8.84% lower at $88.71 on Monday.

See Also: Tesla, Nio Battery Supplier CATL Sues Rival Over Allegations Of IP Violation

Why It Matters: Chinese stocks including those of the Jack Ma-led Alibaba traded lower after a meeting between U.S. and Chinese officials failed to make major headways.

Adding to the pressure on Chinese stocks were regulations introduced by the Chinese government related to for-profit education companies, which investors fear could affect other industries.

Ark Invest has continued to divest from China and earlier in the month sold shares in Tencent Holdings (OTC: TCEHY) and both rivals of Alibaba.

Read Next: Alibaba Co-Founder The Mystery Buyer Of The 3rd Most Expensive Home Ever Sold In US: Report


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