Chinese Tech Stocks Plummet in January on Economic Worries, Regulations, and Company Issues
• China stocks fell sharply in January due to weak economic data, government interventions, and ongoing regulatory concerns. JD.com, PDD Holdings, and Baidu were all down over 10%.
• Slowing GDP growth, Evergrande's liquidation, and government pleas for investors not to sell added to negative sentiment around Chinese stocks.
• JD.com fell the most, losing market share and lacking growth. Its founder acknowledged the company had become bloated and inefficient.
• PDD Holdings rose at first thanks to its Temu app, but then declined on analyst comments about slowing growth. Its revenue doubled last quarter.
• Baidu fell mid-month on links between its AI and Chinese military. It denied the claims but the stock failed to recover.