By Oyintari Ben
Shares of Chinese companies with US listings have plummeted over worries that President Xi Jinping would stick to his ideology-driven policy at the expense of economic expansion.
Chinese IT heavyweights Alibaba and Baidu experienced losses of nearly 12% in New York.
Investors worry that the strict corona virus regulations will hinder the second-largest economy in the world.
Beijing, according to one observer, is engaged in a “tug-of-war” between its zero-Covid policy and initiatives to spur growth.
After hitting a 52-week low earlier in the day, Alibaba’s shares, a major player in the technology industry, ended the day 12.5% lower on the New York Stock Exchange.
Internet giant Baidu had a 12.6% decline, while e-commerce platform Pinduoduo saw an almost 25% decline.
It occurred after the twice-decadental congress of China’s ruling Communist Party ended on Sunday.
President Xi, who won an unprecedented third term in office, provided no timetable for loosening the nation’s stringent efforts to stop the coronavirus during the week-long event.
Some of China’s largest cities have been placed under lockdown as a result of the zero Covid restrictions, including Shanghai, which is a center for industry, shipping, and finance.
According to Minyue Liu of BNP Paribas Asset Management, China’s economy is dealing with “policy stimulus and several growth obstacles, including Covid restrictions, a slump in the real estate market, and declining exports.”
She stated, “We anticipate sustained domestic pressure on the [Chinese] government’s zero-Covid policy.
After falling the day before, the stock markets in Hong Kong and the Chinese mainland made some progress on Tuesday.
On Monday, the Shanghai Composite closed 2% lower while the benchmark Hang Seng index in Hong Kong lost more than 6% of its value.
