Shares of Chinese listed in the U. S. They plunged this morning amid considerations of a leftward shift in the country’s politics after a Communist Party congress re-elected Xi Jinping as leader with six new Politburo members flagged as Xi loyalists.
Internet e-commerce leaders such as Alibaba plunged 15% to $61. 15, Pinduoduo lost 23% to $45. 41 and JD. com fell 15% to $35. 66 shortly after noon, wiping out billions of dollars in market capitalization and non-public wealth.
Entertainment stocks also fell on considerations about customer expansion in the world’s second-largest economy. Tencent Music lost 8% to $3. 52; Last year, it was trading at $26. iQiyi, the online video and content provider, also lost 8% to $1. 86. Its U. S. -traded shares The U. S. economy cost more than $25 in February of last year. EV maker NIO lost 17% to $9. 28; the Shanghai-based manufacturer’s shares have lost 77% of their price in the past year.
China’s once-big-flying economy has struggled to slow expansion this year due to Covid-19 lockdowns and travel restrictions that have hurt customer spending and disrupted global supply chains. Official target of 5. 5% by 2022, the government said, but even that build-up was not enough to counter considerations about the country’s new leadership.
Xi won a third five-year term, cementing his decades-long political influence in the country; the six members elected to the hard-party Politburo are allies of Xi Li Qiang, Wang Huning, Cai Qi, Zhang Leji, Ding Xuexiang and Li Xi. (See previous article here). Former Communist Party Secretary Hu Jintao was removed from the Assembly from his headquarters alongside Xi. Outgoing reformist Premier Li Keqiang was not appointed to the new Politburo at a time when personal sector business leaders are concerned about new measures to redistribute revenue sources and the government’s tilt in favor of state-owned enterprises.
Xi, 69, spoke to reporters at a midday rally in Beijing yesterday, fusing praise of Marxism with nationalist themes and voicing that China’s economy will return to growth. The “solid fundamentals will change,” Xi said, answering any questions from reporters. .
The assembly also took a stand amid geopolitical tensions with the US. The U. S. government is responsible for Taiwan and Beijing’s close ties with Russia. Underscoring the political currents in motion, the pro-business Wall Street Journal in a weekend editorial criticized Morgan Stanley CEO James Gorman, Goldman Sachs Chairman David Solomon, JPMorgan Chairman Rob Kapito, and other “Wall Street Masters” for attending an upcoming convention in Hong Kong with their “strongman” John Lee in connection with his handling of dissent there.
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