Chinese stocks declined on Monday following news last week that Beijing would be cracking down on debt, asset bubbles and big tech companies. Baidu (NASDAQ:BIDU) and Pinduoduo (NASDAQ:PDD) dropped more than 11% and 12%, respectively; videogame publisher Bilibili (NASDAQ:BILI) crashed 17% on the day.
The decline in BIDU stock comes after a in February. By comparison, PDD stock has been , though it’s still made serious gains year over year. BILI stock dipped as investors took profits after the company , and today’s decline was in line with that trend.
The wider crunch on Chinese stocks comes after the Chinese government announced projected GDP growth for 2021 that came in slightly underneath economists’ predictions. That moderated projection could be due to the government’s
.
More specifically, the Chinese government on Thursday outlined such as Alibaba (NASDAQ:BABA) and Tencent (OTCMKTS:TCEHY), sending their associated stocks spiraling lower. Combined with an announcement that Chinese banking regulators would be , investors are understandably concerned about volatility in share prices.
Chinese regulators additionally mentioned with regards to speculative bubbles. The moves by the Chinese government follow at the end of February.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.
