Chinese stocks were slumping early Thursday after a high-profile summit between Presidents Joe Biden and Xi Jinping, and a warning from
Alibaba.
Shares of e-commerce giant Alibaba (ticker: BABA) dived down 8.2%.
JD.com
stock slumped 3.2%, while
Baidu
(BIDU) fell 3.2%. Electric-vehicle makers also declined, with
NIO
stock dropping 6.7%,
XPeng
(XPEV) down 3.3%, and
Li Auto
(LI) 2.7% lower.
Alibaba reported earnings Thursday, but the results quickly took a back seat. While profits were a beat, it said it would not spin off its cloud division as planned, as expanded U.S. export controls on chips have created uncertainty for the business.
Wednesday’s summit in San Francisco produced warm words between the heads of state of the world’s two largest economies in their first meeting in a year. They also agreed to resume direct communications between their two militaries. But little was said about the tit-for-tat tariffs the U.S. and Chinese governments have placed on goods, such as semiconductors or battery parts.
Chinese markets closed down on Thursday. The Shanghai composite lost 0.7%. Hong Kong’s
Hang Seng Index fell 1.4%.
Write to Brian Swint at [email protected]
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