Chinese stocks listed in the U.S. faced significant declines, with the Nasdaq Golden Dragon China Index falling 3% to 7,442 points. The decline was led by electric vehicle companies, with BYD (BYDDY, Financial) taking a substantial hit, dropping 9.1% to $87.10. This follows the announcement of a major share placement involving 1.298 billion H shares, marking the largest stock issuance in Hong Kong in nearly four years. The new shares are priced at around 7.8% discount to its last close.
Other electric vehicle stocks also suffered; XPeng (XPEV) fell by 5.8%, and Li Auto (LI) declined by 10.9%. Cloud service providers were not spared either, with GDS Holdings (GDS) plunging 16.3% and Kingsoft Cloud (KC) dropping 8.4%.
Mainstream tech stocks also faced downward pressure. Alibaba (BABA) saw a 1.3% decline, while Tencent's ADR (TCEHY) fell 0.9%. Pinduoduo (PDD) slipped by 1%, with Baidu (BIDU) and Bilibili (BILI) down by 2.5% and 2.6%, respectively. Vipshop (VIPS) decreased by 2.9%, NetEase (NTES) by 3.1%, and JD.com (JD) along with New Oriental Education (EDU) by 4% and 4.8%.
Amid the broad sell-off, Trip.com (TCOM) managed to defy the trend and rose by 2%, standing out as a rare gainer.
