Shares of Chinese companies witnessed a turbulent Monday morning, as rampant protests across the nation threatened to further distort the markets. The Chinese populace took to the streets during the weekend after a major fire in Urumqi, Xinjiang, took ten lives. People blame the government-imposed strict lockdowns for the delay in suppressing the fire.
Hong Kong’s Hang Seng Index dropped over 4% in early trade but recovered later. Meanwhile, the Chinese domestic CSI 300 index ended the day down 1.1%. COVID cases are emerging rapidly in China, signaling another round of strict policies that could hurt businesses. As per the National Health Commission, roughly 40,000 new locally transmitted cases were reported on Sunday, November 27.
Interestingly, investors are shedding Chinese stocks and reaping profits earned so far in November. Shareholders also fear the fate of the stocks, should geo-political tensions and people’s protests spark further disruption in the economy. CSI 300 has gained 6.4%, and Hang Seng has gained nearly 17.8% so far in November.
Since the onset of the latest round of lockdowns on the mainland, Chinese stocks are facing downward pressure. Here is a list of Chinese stocks that could be further affected by the protests:
- JD.Com (NASDAQ:JD)
- Alibaba Group Holdings Ltd. (NYSE:BABA)
- Baidu (NASDAQ:BIDU)
- Li Auto (NASDAQ:LI)
- Pinduoduo (NASDAQ:PDD)
- XPeng (NYSE:XPEV)
- Nio (NYSE:NIO)