Shares of U.S.-listed Chinese companies are losing mightily on the wave of the Chinese stock market crash and concerns about possible delisting from U.S. trading floors:
- Xi Jinping's victory has raised concerns around China's authoritarian, business-unfriendly government. Additionally, Xi has appointed his supporters to one of China's key decision-making bodies;
- Covid Zero policy may be prolonged, and the investment climate in China may worsen for both domestic and international companies;
- Strained Washington-Beijing relations may lead to tighter regulation of business cooperation; Companies basing their business model on bilateral cooperation between the two countries are bracing themselves for a likely worse period;
- Macro data from China for Q3 had a mixed tone and did not confirm the positive recovery that bulls were hoping for. Although GDP grew, consumption slowed markedly in September, unemployment rose and the real estate crisis continues to extend;
Tencent (TME.US) -14.5%, Alibaba (BABA.US) -15.5%, Baidu (BIDU.US) -16%, Weibo (WB.US) -16.5%, Yum China (YUMC.US) -12%, NIO (NIO.US) -17%, New Oriental (EDU.US) -20%.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
The list of the worst performing stocks after the US opening today is dominated by Chinese companies. Source: xStation5
Tencent (TME.US) shares, D1 interval. The decline in the stock reaches nearly 15% today, with RSI indicating levels close to oversold. The share price of the U.S.-listed Chinese entertainment and gaming giant has fallen more than 85% from its peaks in early 2021. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
