Xi’s power move punishes Chinese stocks, pushing them down as much as 26% in one day

Investors have made one thing clear: They don’t like Xi Jinping’s moves to consolidate power.

Over the weekend, Xi took his third term as China’s communist party leader while sidelining rivals, extending his rule without an apparent heir. When the US stock market opened Monday, shares of some of the biggest Chinese companies plummeted.

Read: Hong Kong stocks suffer worst single-day rout since 2008 as Xi consolidates power

There are 73 Chinese stocks listed on the New York Stock Exchange and 192 in the Nasdaq Composite Index. Of those, 22 had market capitalizations of at least $5 billion as of Dec. 31, the cutoff for this article on share performance.

Among that group of companies are electric-car makers (Li Auto Inc. LI,
Nio Inc. NIO
and Xpeng Inc. XPEV
) and internet services giants, such as Alibaba Group Holding Ltd. BABA,
Baidu Inc.BIDU
and Trip.com Group Ltd. TCOM.
Pinduoduo Inc. PDD
led the rout, with a decline of 26% in midday trading.

Longer-term uncertainties for investors holding shares of Chinese companies have not only included Xi’s crackdowns on various industries. China’s government has agreed to give US regulators access to auditors’ reports about Chinese companies listed on US exchanges, but it remains to be seen if Xi will allow the agreement to be put into practice.

Rout for Chinese stocks

Here’s how the group of 22 Chinese stocks listed in the US was performing as of noon, from worst to best:

Company

Ticker

Oct. 24 price change

2022 price change

Decline from 52-week intraday high

Date of 52-week intraday high

Pinduoduo Inc. ADR Class A

PDD

-25.5%

-24.7%

-57.9%

10/22/2021

Zai Lab Ltd. ADR

ZLAB

-23.2%

-65.0%

-79.2%

10/27/2021

Kanzhun Ltd. ADR

BZ

-22.5%

-68.4%

-74.5%

12/10/2021

GDS Holdings Ltd. ADR Class A

GDS

-20.6%

-75.8%

-82.4%

10/22/2021

Li Auto Inc. ADR Class A

LI

-20.4%

-55.9%

-65.9%

06/24/2022

ZTO Express Inc. ADR Class A

ZTO

-20.3%

-39.5%

-50.9%

11/18/2021

Bilibili Inc. ADR Class Z

BILI

-19.7%

-80.9%

-90.1%

11/16/2021

Nio Inc. ADR Class A

NIO

-17.9%

-70.9%

-79.2%

08/11/2021

H World Group Ltd. ADR

HTHT

-16.2%

-32.2%

-48.8%

11/11/2021

Alibaba Group Holding Ltd. ADR

BABA

-15.6%

-48.7%

-66.5%

10/22/2021

JD.com Inc. ADR Class A

J.D.

-15.1%

-48.9%

-61.4%

11/23/2021

Trip.com Group Ltd. ADR

TCOM

-14.4%

-16.8%

-35.2%

08/11/2021

KE Holdings Inc. ADR Class A

BEKE

-13.8%

-50.1%

-61.3%

10/22/2021

Baidu Inc. ADR Class A

BIDU

-13.5%

-47.0%

-56.8%

10/22/2021

XPeng Inc. ADR Class A

XPEV

-13.2%

-86.0%

-87.5%

01/12/2021

Full Truck Alliance Co. Ltd. ADR

YMM

-12.6%

-42.2%

-72.3%

10/25/2021

Yum China Holdings Inc.

YUMC

-12.2%

-20.4%

-35.0%

10/22/2021

Hutchmed Ltd. ADR

HCM

-12.1%

-77.6%

-78.4%

11/29/2021

NetEase Inc. ADR

NTES

-11.7%

-45.8%

-53.3%

11/22/2021

Tencent Music Entertainment Group ADR Class A

TME

-8.3%

-48.7%

-61.4%

10/22/2021

Vipshop Holdings Ltd. ADR

VIPS

-7.7%

-17.5%

-46.8%

11/16/2021

Lufax Holding Ltd. ADR Class A

READ

-4.8%

-71.8%

-79.1%

11/11/2021

Source: FactSet

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