China shares slump in US as Xi starts 3rd term

by IANS |

Beijing, Oct 25 (IANS) Shares of Chinese firms listed in the US have slumped on concerns that President Xi Jinping will continue with his ideology-driven approach at the cost of economic growth.

Chinese technology giants Alibaba and Baidu fell by over 12 per cent in New York, the BBC reported.

Investors fear the world's second largest economy will be held back by its tough Covid-19 restrictions.

One analyst said Beijing was in a "tug-of-war" between measures to boost growth and its zero-Covid policies.

On Monday, shares in technology giant Alibaba closed 12.5 per cent lower on the New York Stock Exchange, after hitting a 52-week low earlier in the day.

Internet company Baidu lost 12.6 per cent, while e-commerce platform Pinduoduo plunged by almost 25 per cent.

It comes after China's ruling Communist Party wrapped up its twice-a-decade congress on Sunday.

During the week-long event President Xi, who secured a historic third term in charge, offered no timeline for the easing of the country's strict measures to slow the spread of the coronavirus.

The zero Covid policies have seen some of China's biggest cities being put into lockdown, including the financial, manufacturing and shipping hub of Shanghai.

China's economy is facing "policy stimulus and multiple growth headwinds including Covid restrictions, a property market downturn and slowing exports," Minyue Liu from BNP Paribas Asset Management told the BBC.

"We expect the (Chinese) government to face continued domestic pressure on its zero-Covid policy," she said

Latest News
25 students take ill due to stale food in Andhra school Sat, Nov 26, 2022, 12:53 PM
Cop, his friend molest woman in Delhi Sat, Nov 26, 2022, 12:53 PM
Aaftab to be produced in court today, police likely to seek extension of his custody Sat, Nov 26, 2022, 12:52 PM
Centre led by PM Modi involved in K'taka voters'ID scam: Cong Sat, Nov 26, 2022, 12:51 PM
Ex-Cong MLA booked for abusing, manhandling Delhi Police cop Sat, Nov 26, 2022, 12:47 PM
MCD Polls: Nadda launches scathing attack on AAP Sat, Nov 26, 2022, 12:46 PM
K'taka to set up help centres at all PU science colleges Sat, Nov 26, 2022, 12:30 PM
Bengali little magazines get their first organised platform Sat, Nov 26, 2022, 12:29 PM
K'taka AAP unit to celebrate party's Foundation Day on Nov 26 Sat, Nov 26, 2022, 12:29 PM
Bihar Shocker: Man's tongue cut off after murder Sat, Nov 26, 2022, 12:28 PM
PM to participate in Constitution Day celebrations at SC Fri, Nov 25, 2022, 04:33 PM
IND v NZ, 1st ODI: Latham took the game away from us in the 40th over, admits Dhawan Fri, Nov 25, 2022, 04:32 PM
WhatsApp working on voice status updates on iOS beta Fri, Nov 25, 2022, 04:31 PM
Karnataka temple management seeks security after threat from Islamic outfit Fri, Nov 25, 2022, 04:30 PM
VMware posts $3.2 bn in revenue in Q3 amid acquisition by Broadcom Fri, Nov 25, 2022, 04:05 PM