Chinese stocks fell on Monday, including the following Internet giants: Alibaba (BABA), Baidu (BIDU) and JD.com (JD) Despite bright comments from government officials last week.
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Positive comments from Chinese authorities showing that regulatory crackdowns will be relaxed have led to double-digit inventory growth on Alibaba, Baidu, and JD.com.Includes other stocks soaring in the news Multiple onset (PDD), Bilibili (BILI) and Tencent Holdings (TCEHY).
Chinese officials also said they plan to support overseas listings and build stability in capital markets.
It has boosted the highest growth of these stocks since 2008, but then the rally was furious.
Chinese stocks plunge
And when the delight was over, stock prices began to plummet again on Monday. Alibaba’s share price fell 4.4%, closing at 103.59 on today’s stock market. JD.com’s share price fell 5.7% to 61.44 and Baidu fell 1.6% to 146.68.
In addition, Pinduoduo fell 6.1% to 39.99, Bilibili fell 9.6% to 24.91, and Tencent Holdings, which had not yet been officially closed, fell 7.1% to 48.01.
Last year was a difficult situation for Chinese stockholders. Many of the large internet stocks have had their market value cut in half in the last 12 months.
Stock prices have been hit repeatedly, primarily due to regulations, Covid-19 concerns, and macroeconomic concerns.
Analysts pointed out three major drivers of the reversal. First, there are new concerns about the possibility of delisting Chinese stocks traded in New York.
In addition, the resurrection of Covid-19 cases is occurring in major mainland cities. Concerns continue about the possibility that China will support Russia in its invasion of Ukraine.
Follow Brian Deagon on Twitter. @IBD_BDeagon For more information on tech stocks, analytics and financial markets.
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