What’s Going On With US Listed Chinese Stocks Alibaba, Baidu, Nio, XPeng on Monday?
U.S.-listed Chinese stocks like Alibaba Group Holding (NYSE:BABA), Baidu, Inc. (NASDAQ:BIDU), JD.com, Inc. (NASDAQ:JD) and PDD Holdings Inc. (NASDAQ:PDD) are trading lower Monday as China’s stimulus measures failed to impress the Street.
After a stimulus-driven rally, e-commerce stocks lost 6% to over 8% in the last five days.
Chinese electric vehicle stocks NIO Inc (NYSE:NIO) and XPeng Inc (NYSE:XPEV) are also trading lower. Other EV stocks, including Li Auto Inc (NASDAQ:LI), lost over 3% to 11% in the last five days.
Also Read: Alibaba Sees Third Week of Gains, Boosted by China’s Stimulus and Holiday Shopping Season
On Saturday, China agreed on more stimulus, which will entail higher debt. Beijing assured subsidies to low-income groups, property market support, and replenishment of state banks’ capital, Reuters cites Finance Minister Lan Foan.
However, the lack of disclosure of an actual figure for the stimulus left the Street anxious.
Prior reports indicated China plans to issue special sovereign bonds of 2 trillion yuan ($284.4 billion) to help governments tackle their debt problems and subsidize purchases of home appliances and other goods. According to reports, China is also eyeing up to 1 trillion yuan of capital in its biggest state banks.
The Chinese stocks got battered by the domestic antitrust crackdown and geopolitical tensions with the U.S., which restricted their access to sophisticated artificial intelligence technology, pivotal to every industry’s prospects ranging from e-commerce to EV and more.
Price Actions: At the last check on Monday, BABA stock was down 1.85% to $108.10 in the premarket session. BIDU is down 2.60%, JD is down 0.64%, NIO is down 2.72%, and XPEV is down 5.04%.
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