Chinese stocks listed in the US tumbled for a fifth day, taking the Nasdaq Golden Dragon China Index lower for its longest losing streak since April, as investors assess the country’s bleak economic outlook and Beijing’s persistent Covid-zero policy.
(Bloomberg) — Chinese stocks listed in the US tumbled for a fifth day, taking the Nasdaq Golden Dragon China Index lower for its longest losing streak since April, as investors assess the country’s bleak economic outlook and Beijing’s persistent Covid-zero policy.
The Golden Dragon fell 3.4% Tuesday, after plunging as much as 5.4%.
It has declined 15% in the past five sessions and closed at its lowest level since March 15, when China announced a strong push to stabilize its markets and sparked a rally. Among large-cap tech companies in the index, Alibaba Group Holding Ltd.
lost 4.9%, Baidu Inc. dropped 5.6%, Pinduoduo Inc. slid 4.4% and JD.com Inc. slipped 2.8%.
Read: China Markets Keep Showing Any Reopening Bets Are Risky (1)
Hopes for a near-term relaxation of Covid controls and an economic reopening are waning after Chinese state media including People’s Daily and Xinhua endorsed the country’s Covid-zero policy ahead of the Communist Party Congress.
Meanwhile, the International Monetary Fund lowered its growth estimate for China’s economy to 4.4% from 4.6%.
Investor sentiment is also being hurt by the Biden administration’s new measures restricting exports of cutting-edge semiconductor technology to China, escalating tensions between the two countries.
(Updates with share moves at close)
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