The broader market is down today, and Chinese stocks are no exception. Indeed, the iShares MSCI China ETF (MCHI) is down 0.38% at the time of writing, although this is better than the overall market. Some major stocks that are in the ETF include:
JD is down the most out of the three. This can be attributed to a $1.5 billion campaign to compete against Pinduoduo. JD is trying to reclaim its low-price reputation, which was key to its past success. The money will be used to subsidize JD’s self-operated online shops and third-party sellers. As a result, PDD also tanked in today’s trading session.
A look at the year-to-date performance of the Chinese market shows a strong start to the year, with prices hitting a high of $59.29. However, MCHI has given up most of its initial gains and is only up 2.3% at this juncture.