S& 500 rise on U.S.-Japan trade deal optimism; Tesla, Alphabet earnings due
Investing.com -- Chinese stocks listed in the U.S. market, including Alibaba (NYSE:BABA) and JD.com, experienced a decline of over 8% each in Monday’s premarket trading. This downtrend is a continuation of losses due to the growing trade conflict between the U.S. and China.
The KraneShares CSI China Internet ETF, a fund that tracks Chinese internet companies, was down 6.5% in premarket trading. Other U.S.-listed Chinese stocks also saw significant declines, including Baidu (NASDAQ:BIDU) with a decrease of 5.1%, PDD by 6.9%, NetEase (NASDAQ:NTES) by 10%, Trip.com by 5.5%, Bilibili (NASDAQ:BILI) by 8.6%, Nio (NYSE:NIO) by 4.9%, Li Auto (NASDAQ:LI) by 9.5%, and XPeng (NYSE:XPEV) by 11%. Alibaba shares are down 6.5%.
This downward trend followed a 13% drop in the Hang Seng Index, the largest since October 1997. The Hong Kong market reopened on Monday after a public holiday on Friday. Additionally, the Nasdaq Golden Dragon China Index, which tracks Chinese companies listed on the Nasdaq, fell 8.9% on Friday.
This came in response to Beijing’s decision to impose an additional 34% levy on all U.S. imports, a move that was a retaliation against tariffs imposed by Donald Trump.
In the wake of these market shifts, there are indications that Chinese officials may take steps to provide further support to their markets. Central Huijin, a sovereign fund, has reportedly increased its ETF holdings.
Bloomberg also reported that Chinese policymakers discussed potential measures to stabilize the economy over the weekend.
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