Chinese stocks drop in US ahead of Fed inflation action; Alibaba, BiliBili Plunge 10%

Shares of many of China’s best-known companies plunged on the Nasdaq and New York Stock Exchange today in a sell-off amid concerns about rising interest rates and slowing growth in the United States, the largest economy in the world.

The Nasdaq lost 4.7% and the S&P 500 lost 3.9% as US stocks fell into bearish territory.

Along with a possible slowdown in US and global economic growth that would hurt exporters, Chinese equities are coming under additional pressure from continued uncertainty about the pace of the country’s economic recovery from the 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, Chinese stock sellers sold today on expectation of bad news. news and did not wait for details expected later this week.

China’s best-known e-commerce stocks have fallen. Among them, Alibaba lost 10.3% to $98.52 and Pinduoduo fell 9.2% to $54.41, both worse than the Nasdaq and S&P percentage declines.

Fast-growing Chinese electric vehicle makers were also hit hard: NIO lost 11.8% to $15.99 and XPeng fell 7.2% to $23.95.

Social media BiliBili also lost 10% of its value, falling to $23.49. Search engine Baidu fell 7.7% to $131.88.

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Post expires at 10:51am on Friday June 24th, 2022