China’s stock market dropped significantly on Tuesday, unlike other Asia-Pacific markets that were up. This followed record highs on Wall Street.
Key Event: Notable Chinese companies declined sharply:
Nio Inc (NIO) fell 4.58%,
Alibaba (BABA) dropped 4.47%,
JD.Com (JD) decreased 6.28%, and
Li Auto (LI) went down 4.62%. Investors are cautious about how Chinese stimulus will be implemented.
The CSI 300 index in China sank 2.66% to 3,855.99, while Hong Kong’s Hang Seng index fell 3.67% to 20,318.79. These declines followed disappointing September trade data revealing that exports rose 2.4% and imports just 0.3%, both below expectations.
Related News: South Korea reported a trade surplus of $6.7 billion in September, up from $3.7 billion in August.
Significance: The drop in Chinese stocks raises concerns about the effectiveness of China’s economic stimulus efforts. China is considering issuing 6 trillion yuan (about $850 billion) in special treasury bonds over three years to boost the economy, but confidence in these measures is low. U.S.-listed Chinese stocks have also been falling, with e-commerce shares down 6% to over 8% recently. Electric vehicle stocks, including Nio and XPeng, are experiencing similar declines.
Next Steps:
Disclaimer: This content was partly generated with Benzinga Neuro and reviewed by Benzinga editors.
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
`