NIO Stock Price (NYSE:NIO)
Shares of electric car manufacturer Nio Inc. (NIO stock), one of the more active China-based businesses trading in the United States, fell 18.1%, moving closer to the largest one-day selloff since it fell 20.2% on September 24, 2019. The NIO stock (NYSE:NIO) price was also projected to finish below the $10 threshold for the first time since July of 2020.
On Monday, the shares of China-based corporations listed in the United States saw widespread losses. This was because China President Xi Jinping’s steps to consolidate power stoked worries about present policies, which have led to a sluggish economy.
According to a report by the Associated Press, Chinese leader Xi was appointed over the weekend to a third, five-year term as general secretary, despite the tradition of standing down from the position after two terms have been completed. In addition, Xi removed No. 2 leader Premier Li Keqiang, a supporter of market-style reform and private enterprise, off a seven-member Standing Committee in favor of stronger Xi supporters. Li Keqiang was a proponent of market-style reform and private enterprise.
Investors were already hurting from a weakening economy when this news came out, adding to their worries about the current zero-COVID policy, which has led to lockdowns and uncertainty over whether or not the crackdown on technological businesses will continue.
During the morning trading session, the price of the iShares China Large-Cap exchange-traded fund (FXI) dropped by 10.1%, reaching its lowest level since November 2008.
This followed a drop of 6.4% in Hong Kong’s Hang Seng HK:HSI to a 13-year low, while a drop of 2.0% occurred in Shanghai Composite CN:SHCOMP. The Invesco Golden Dragon China ETF (PGJ), which solely invests in U.S.-listed shares of Chinese firms with headquarters in the United States, was hammered to a loss of 15.3% and is on its way to a 10-year low.
Even if the statistics revealed that the Chinese economy expanded at a rate higher than anticipated in the third quarter, the rate of growth year to date has remained much below the growth objective for the entire year. According to Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, “the [growth] difference is attributable to China’s unrealistic COVID-zero objective,” which has been reinforced and solidified with Xi’s third term in office. Ozkardeskaya made this statement.
NYSE:NIO Vs NYSE: XPEV
The stock of e-commerce giant Alibaba Group Holding Ltd., which trades under the ticker symbol BABA, fell by 15.3% and was trading at levels not seen since February 2016.
In other news, the stock of Tencent Music Entertainment Group dropped by 14.2%, while shares of JD.com also fell. The share price of JD fell 17.1%. In comparison, shares of Pinduoduo Inc. plummeted 23.3%, iQiyi Inc. IQ dropped 16.2%, Bilibili Inc. BILI fell 16.4%. Baidu Inc. BIDU lost 16.7% of its value.
Featured Image- Unsplash @ Li Zhang
Author Valerie Remorosa 
