China Stocks Listed in the U.S. Retreat on Sanction Fears
China Stocks Listed in the U.S. Retreat on Sanction Fears
(Bloomberg) -- Shares of Chinese companies listed in the U.S. plunged on Wednesday to the lowest since March 2020 on concerns Washington will hit more companies with investment and export sanctions.
The Nasdaq Golden Dragon Index finished the session down 3.1% after earlier slumping as much as 6.7%. The selloff hit across sectors, with technology companies Alibaba Group Holding Ltd. and JD.com down 3.3% and 5.1%, respectively, and biotech firms Zai Lab Ltd. and BeiGene Ltd. among those seeing drops of more than 10%.
That adds to the more than $1 trillion wiped off the value of China technology stocks since their February peak after Beijing launched a sweeping clampdown on areas from digital finance and data security to online games and overseas listings.
The moves come after Wuxi Biologics Cayman Inc. tumbled a record 25% in Hong Kong before paring losses, while Sino Biopharmaceutical Ltd. dropped 5% at the close. Semiconductor Manufacturing International Corp., which is already under sanctions, fell 6.4% on a report that the U.S. is mulling harsher steps.
The Biden administration is considering imposing tougher sanctions on China’s largest chipmaker, according to people familiar with the situation. The Financial Times also reported that the administration will place more companies on a blacklist, some of which are alleged to be involved in the surveillance of China’s Uyghur minorities.
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