U.S. listings of Chinese stocks edge lower after June CPI data
2023.07.10 07:16
© Reuters
Investing.com — U.S.-listed shares in Chinese companies slipped in premarket trading on Monday, as concerns around the health of the world’s second-biggest economy mount following weaker than anticipated inflation data.
Online retailers JD.com (NASDAQ:) and PDD Holdings (NASDAQ:), as well as web services firm Baidu (NASDAQ:), saw their shares drop by more than 1%. Electric vehicle makers Nio (NYSE:), Li Auto Inc (NASDAQ:) and Xpeng Inc (NYSE:) also dipped.
Meanwhile, e-commerce giant Alibaba (NYSE:) fell by just under 1%, pulling back from a surge in the stock on Friday. The shares jumped by 8% to close out the last trading week after China fined Alibaba’s financial arm Ant Group, a move that some investors interpreted as a sign that Beijing’s long-standing crackdown on the country’s major corporate players may be coming to an end.
On Friday, the announcement helped bolster the Nasdaq Golden Dragon China Index, a gauge of the performance of publicly-traded businesses in the U.S. that have the majority of their operations conducted in China, by 3.2%.
However, sentiment was dented on Monday after the release of the latest inflation data from the National Bureau of Statistics pointed to sluggishness in the country’s post-COVID recovery.
China’s fell by 5.4% annually last month, the sharpest fall since 2015 and steeper than analysts’ estimates of 5.0%, as domestic and foreign demand both weakened.
Additionally, were flat year-on-year due to an accelerating drop in pork prices. The figure, which had been expected to increase by 0.2%, was the slowest since 2021.
