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US-listed shares of Chinese firms slide as stimulus optimism ebbs
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US-listed shares of Chinese firms slide as stimulus optimism ebbs
Oct 10, 2024 11:32 PM

Oct 8 (Reuters) - U.S.-listed shares of Chinese

companies fell on Tuesday, tracking an underwhelming start for

Shanghai markets after a week-long break, as investors worried

over the lack of new stimulus measures to power an economic

recovery.

American Depositary Receipts (ADRs) of Chinese e-commerce

giants Alibaba Group ( BABA ) dropped about 8% in premarket

trading, while JD.com ( JD ) and PDD Holdings ( PDD ) declined

10.9% and 10.6%, respectively.

China's stock markets climbed to their

highest levels in more than two years at the open, but lost

steam after economic planner chairman Zheng Shanjie failed to

detail sufficiently big or new measures.

"This morning's briefing from the Chinese government didn't

really seem to give investors much new stimulus measures," said

Christopher Peters, trading floor manager at Accendo Markets in

London. "The concern may well fall towards whether or not this

would be sufficient to stop any sort of property problems in

China."

Shares of China-exposed assets such as European luxury firms

and commodities tumbled. They had rallied, along with

domestic and U.S.-listings of Chinese firms, toward the end of

last month after Beijing introduced a bevy of stimulus measures

to prop up its ailing economy.

China's blue-chip CSI 300 jumped more than 10%

intraday on Tuesday, but surrendered some gains mid-day and

closed up 6%.

Equities in Hong Kong, which remained open all

through last week, slumped more than 9% and clocked their worst

single-day showing since 2008.

The downbeat mood spilled over to the U.S. markets. Chinese

electric-vehicle maker Nio shed 10.6%, gaming company

Bilibili ( BILI ) lost 15.7% and search engine giant Baidu ( BIDU )

eased 9.1%.

The iShares MSCI China ETF fell 12.9%, while the

tech-focused KraneShares CSI China Internet ETF slipped

12.1%.

Other China-exposed industries also came under pressure.

Copper producer Freeport-McMoRan ( FCX ) slipped 4.1%, while

luxury firm Estee Lauder ( EL ) eased 3.5%.

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