China Stocks Crumble in US as Worry Over Xi Spurs Record Selloff
- Selloff follows Xi power play in Communist Party reshuffle
- Investors worry his move may lead to harsh policy steps
This article is for subscribers only.
US-listed Chinese stocks tumbled Monday on investor concern that President Xi Jinping’s push to tighten his control over the government will stifle the economy and private enterprise.
The Nasdaq Golden Dragon China Index of 65 Chinese stocks posted its biggest drop on record, sinking 14% to erase about $93 billion in market value. The index closed at its lowest level since 2013, the year Xi was named the nation’s president. Major internet companies from Alibaba Group Holding Ltd., JD.com Inc. to Baidu Inc. also tanked at least 12%, while Pinduoduo Inc. plunged 25%. Electric vehicle stocks NIO Inc. declined 16% and Li Auto Inc. slid 17%.