Chinese Stocks Plunge As Stimulus Hopes Fade: Hong Kong Posts Worst Daily Decline Since October 2008
Portfolio Pulse from Piero Cingari
Chinese stocks experienced a sharp selloff due to disappointment over the lack of aggressive fiscal stimulus from Beijing. The Hang Seng Index in Hong Kong fell over 9%, marking its worst single-day loss since 2008. U.S.-listed Chinese stocks and ETFs also saw significant declines.

October 08, 2024 | 12:40 pm
News sentiment analysis
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NEGATIVE IMPACT
Alibaba Group Holdings Ltd. saw a 5.6% decline in premarket trading as part of the broader decline in Chinese stocks, affected by the lack of aggressive fiscal stimulus from China.
BABA, as a major Chinese e-commerce platform, is sensitive to economic policies and investor sentiment, leading to a significant drop amid the broader market selloff.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Baidu Inc. experienced a 7.4% decline in premarket trading due to the broader selloff in Chinese stocks, driven by disappointment over the lack of new fiscal stimulus from Beijing.
BIDU, as a major Chinese tech company, is affected by the lack of new fiscal measures and the resulting negative investor sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares China Large-Cap ETF experienced an 8.3% decline as Chinese stocks sold off due to disappointment over the lack of new fiscal stimulus from Beijing.
FXI, as an ETF tracking large-cap Chinese equities, is directly impacted by the broad selloff in Chinese stocks due to the lack of new fiscal measures.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
JD.com Inc. shares fell 7.6% in premarket trading amid a broader selloff in Chinese stocks, influenced by the absence of aggressive fiscal stimulus from China.
JD, as a major Chinese e-commerce platform, is sensitive to economic policies and investor sentiment, leading to a significant drop amid the broader market selloff.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
KraneShares CSI China Internet ETF saw a 9.7% decline as Chinese stocks sold off due to disappointment over the lack of new fiscal stimulus from Beijing.
KWEB, as an ETF focused on Chinese internet companies, is directly impacted by the broad selloff in Chinese stocks due to the lack of new fiscal measures.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Li Auto Inc. shares fell 9.7% in premarket trading as part of the broader decline in Chinese stocks, affected by the lack of aggressive fiscal stimulus from China.
LI, as a Chinese EV maker, is sensitive to economic policies and investor sentiment, leading to a significant drop amid the broader market selloff.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
iShares MSCI China ETF fell 10% as Chinese stocks sold off due to disappointment over the lack of new fiscal stimulus from Beijing.
MCHI, as an ETF tracking Chinese equities, is directly impacted by the broad selloff in Chinese stocks due to the lack of new fiscal measures.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
NIO Group Inc. saw a 7.6% decline in premarket trading as part of the broader decline in Chinese stocks, affected by the lack of aggressive fiscal stimulus from China.
NIO, as a Chinese EV maker, is sensitive to economic policies and investor sentiment, leading to a significant drop amid the broader market selloff.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
NetEase Inc. shares dropped 6.3% in premarket trading amid a broader selloff in Chinese stocks, influenced by the absence of aggressive fiscal stimulus from China.
NTES, as a major Chinese tech company, is sensitive to economic policies and investor sentiment, leading to a significant drop amid the broader market selloff.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
PDD Holdings Inc. shares dropped 8.4% in premarket trading amid a broader selloff in Chinese stocks, influenced by the absence of aggressive fiscal stimulus from China.
PDD, as a major Chinese e-commerce platform, is sensitive to economic policies and investor sentiment, leading to a significant drop amid the broader market selloff.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Tencent Music Entertainment Group saw a 10.4% drop in premarket trading due to the broader selloff in Chinese stocks, driven by disappointment over the lack of new fiscal stimulus from Beijing.
TME is part of the broader Chinese tech sector, which was heavily impacted by the selloff due to its sensitivity to Chinese economic policies and foreign investor sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
XPeng Inc. experienced an 8.6% decline in premarket trading due to the broader selloff in Chinese stocks, driven by disappointment over the lack of new fiscal stimulus from Beijing.
XPEV, as a Chinese EV company, is affected by the lack of new fiscal measures and the resulting negative investor sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80