The prospects of painful U.S. tariffs were weighing on Chinese stocks Tuesday, overshadowing the end of Singles Day -- China's version of Black Friday.
Hong Kong's Hang Seng Index closed 2.8% lower Tuesday while Chinese markets fell 1.4%, in a move Mizuho analysts attributed to U.S.-China tension heating up.
Alibaba and JD.com stocks' American depositary receipts, or ADRs, were also down by 3% and 5%, respectively, in the premarket.
Trump has chosen Republican Michael Waltz of Florida, a former Green Beret who has taken a tough line on China, to oversee foreign and national security policy in his upcoming administration, The Wall Street Journal reported. The President-elect is also reported to have nominated China Hawk, Florida senator, Marco Rubio to be secretary of state.
Tech stocks led China losses Tuesday, and adding to the gloom around China's sluggish economy were reports from some of China's largest e-commerce platforms which disclosed selected metrics from China's key shopping event Singles Day. The numbers seemingly failed to quiet concerns that China's efforts to revive its lagging economy aren't enough.
The unofficial Chinese holiday, also called "Double 11," takes place on Nov. 11 every year and is often considered a barometer for China consumer sentiment.
Hong Kong-listed Alibaba said it saw a record number of active buyers this year. The retailer said that 589 brands including Apple, Nike and Haier surpassed 100 million yuan in gross merchandise volume, a measure of a platform's sales volume. It did not, however, reveal the total amount of sales over the period.
Peer JD.com said shoppers increased 20% from last year but also didn't disclose the total value of its sales during the shopping festival.
Chinese authorities have introduced a raft of stimulus and economic measures to try to kick-start its lagging economy but cautious consumers have yet to show signs of increased spending.
The next test for Chinese companies, especially those relying on consumer spending, will be quarterly earnings later this week. JD.com is set to report results on Thursday, followed by Alibaba on Friday.
Comments