Shares of Chinese companies listed in the US fell amid concerns that President Xi Jinping will continue his ideology-driven approach at the expense of economic growth.
Chinese tech giants Alibaba and Baidu fell over 12% in New York.
Investors fear the world’s second-biggest economy is being held back by its tough coronavirus restrictions.
One analyst said Beijing is in a “tug of war” between measures to boost growth and its zero-Covid policy.
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On Monday, tech giant Alibaba’s shares on the New York Stock Exchange ended 12.5% lower after hitting a 52-week low earlier in the day.
Internet company Baidu fell 12.6%, while e-commerce platform Pinduoduo fell nearly 25%.
It comes after China’s ruling Communist Party concluded its twice-decade congress on Sunday.
During the week-long event, President Xi, who secured a historic third term, did not offer a timetable for easing the country’s strict measures to slow the spread of the coronavirus.
The zero-Covid policy has led to lockdowns on some of China’s largest cities, including the financial, manufacturing and shipping hub of Shanghai.
China’s economy is facing “political stimulus and multiple headwinds to growth, including Covid restrictions, a housing market downturn and slowing exports,” Minyue Liu of BNP Paribas Asset Management told the BBC.
“We’re expecting them [Chinese] The government must continue to face domestic pressure on its zero-Covid policy,” she said.
Although official figures released on Monday showed the economy grew better-than-expected between July and September, “there were still signs of stress as consumption has remained weak due to the ongoing Covid-19 flare-up and real estate weakness.” Erin Xin, Greater China Economist at HSBC, in a note to investors.
“Due to the lack of clarity, people assume that the direction we saw would be even stronger. That has led to the selling and deteriorating expectations for the Chinese economy,” Trinh Nguyen, senior economist at Natixis, told the BBC.
Stock markets in Hong Kong and mainland China gained some ground on Tuesday after falling the previous day.
Hong Kong’s benchmark index, the Hang Seng, fell more than 6% on Monday, while the Shanghai Composite closed 2% lower.
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