Skip to main content

Market Overview

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

Share:
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 JD.com, Inc (NASDAQ: JD) shares.

ARKF sold 318,465 shares of JD.com 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, JD.com 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 JD.com both rivals of Alibaba.

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

 

Related Articles (PDD + BABA)

View Comments and Join the Discussion!

Posted-In: ARK Investment Management Cathie Wood ChinaNews Sector ETFs Short Ideas Trading Ideas ETFs Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com