Shares in many of China’s best-known companies plunged on the Nasdaq and New York Stock Exchange today as part of a steep selloff amid worries about rising interest rates and slower growth in the United States, the world’s largest economy.
The Nasdaq lost 4.7% and S&P 500 lost 3.9% as U.S. stocks fell into bear market territory.
Besides a possible slowdown in U.S. and global economic growth that would hurt exporters, China stocks have the added pressure of continued uncertainty about the pace of the country’s economic recovery from Covid lockdowns, particularly in Shanghai and Beijing, and the vulnerability of supply chains there to pandemic disruption.
With U.S. interest rates poised to rise sharply as the Federal Reserve tries to counter the country’s worst inflation in four decades, sellers of China shares today sold on the expectation of bad news and didn’t wait for details due later this week.
China’s best-known e-commerce stocks fell. Among them, Alibaba lost 10.3% to $98.52, and Pinduoduo dropped 9.2% to $54.41, both worse than the percentage declines in the Nasdaq and S&P.
Fast-growing China electric vehicle makers were also hit hard: NIO shed 11.8% to $15.99, and XPeng dropped 7.2% to $23.95.
Social media BiliBili also had 10% of its value wiped out, falling to $23.49. Search engine Baidu lost 7.7% to $131.88.
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