On Monday (14th), US China concept stocks continued to decline last week. In addition to being affected by the delisting measures taken by the US Securities and Exchange Commission (SEC) due to censorship issues, the closure of Shenzhen, China due to the epidemic also exacerbated the misfortune of China concept stocks , Alibaba, Baidu, JD.com, Pinduoduo and other Chinese concept stocks all fell by more than 5% before the deadline.
The SEC released a list last week naming 5 Chinese concept stocks that do not comply with the “Foreign Company Accountability Act” (HFCAA). The stock is one-sided.
5 Chinese concept stocks named by the SEC Yum China (YUMC-US) fell 3.68% intraday Monday, BeiGene (BGNE-US) fell 10.26%, Zai Lab (ZLAB-US) fell 2.62%, Shengmei Semiconductor (ACMR-US) plunged 21.79%, Chi-Med Pharmaceuticals (HCM-US) fell 13.40%.
To make matters worse, an emergency outbreak of the epidemic broke out in Shenzhen, China on Monday. The district is home to many Chinese e-commerce and technology companies, which once once more seriously hurt the stock prices of ADRs in China and overseas.
Before the deadline, Alibaba (BABA-US) ADR fell 6.95% intraday, and the share price was tentatively reported at 80.69 DollarBaidu (BIDU-US) fell 5.54%, and the share price is tentatively reported at 112.33 DollarJD.com (JD-US) fell 6.64% to 44.80 per share tentatively DollarPinduoduo (PDD-US) fell 7.55% to 29.70 per share.
In addition, Chinese electric vehicle stocks have also been hit hard by the delisting crisis. Before the deadline, NIO (NIO-US) fell 6.66%, with a provisional report of 15 per share DollarXiaopeng Motors (XPEV-US) fell 7.97% to 21.09 per share tentatively Dollarideal car (LI-US) plummeted 15.97%, with a tentative report of 18.63 per share Dollar。
In Monday’s sell-off in Chinese concept stocks, JPMorgan analysts downgraded JD.com, Alibaba and Pinduoduo to “underweight.”
Analysts said that due to rising geopolitical and macro risks, most global investors are reducing their investment in China’s Internet industry, resulting in a large outflow of funds from the industry. Among them, Alibaba is widely held by investors in China’s Internet stocks. One of the stocks that may continue to face selling pressure in the near term.
At the same time, one of Apple’s largest suppliers, Hon Hai (2317-TW) announced the closure of the Shenzhen factory, Apple (AAPL-US) The stock price was also affected, down 0.61% before the deadline, and the share price was tentatively reported at 153.73 Dollar。
In addition, following several media outlets, including the Financial Times (FT), reported that U.S. officials said Russia may have sought military help from China, some investors have begun to assess the possibility of China’s influence on the war between Russia and Ukraine.