U.S.-traded shares of Chinese companies
Alibaba
Group Holding and
Didi Global
are seeing different reactions Wednesday after weak data on manufacturing pulled down stocks in Hong Kong.
Alibaba’s (ticker: BABA) American depositary receipts are 1% lower in Wednesday trading while Didi ADRs are up 1.0%. Earlier, the
Hang Seng
Index (HSI) ended 1.9% lower after China’s factory purchasing managers index showed a sharper contraction in May than in April.
The figures are a bad sign for China’s recovery after belatedly coming out of Covid-19 lockdowns at the end of last year. Sentiment is also being hurt by China’s raids on foreign consultancies, and ban on semiconductors made by Micron Technology (MU), according to
JPMorgan Chase
(JPM) CEO Jamie Dimon.
“If you have more uncertainty, somewhat caused by the Chinese government,” then “it’s going to change the people here, their own confidence,” Dimon said at a conference in Shanghai in an interview with Bloomberg.
Tension between China and the U.S. has been escalating, with each government restricting exports and sales of technology to the other.
Tesla
(TSLA) CEO Elon Musk, also visiting China this week, said that he’s against decoupling the world’s two largest economies, according to comments published by China’s foreign ministry.
Meituan
(MPNGY), a Chinese delivery company, is down 3.5% in early U.S. trading Wednesday.
Write to Brian Swint at brian.swint@barrons.com
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