U.S. listings of Chinese stocks edge lower after June CPI data
Investing.com -- U.S.-listed shares in Chinese companies slipped in premarket trading on Monday, as concerns around the health of the world's second-biggest economy mount following weaker than anticipated inflation data.
Online retailers JD.com (NASDAQ:JD) and PDD Holdings (NASDAQ:PDD), as well as web services firm Baidu (NASDAQ:BIDU), saw their shares drop by more than 1%. Electric vehicle makers Nio (NYSE:NIO), Li Auto Inc (NASDAQ:LI) and Xpeng Inc (NYSE:XPEV) also dipped.
Meanwhile, e-commerce giant Alibaba (NYSE:BABA) fell by just under 1%, pulling back from a surge in the stock on Friday. The shares jumped by 8% to close out the last trading week after China fined Alibaba's financial arm Ant Group, a move that some investors interpreted as a sign that Beijing's long-standing crackdown on the country's major corporate players may be coming to an end.
On Friday, the announcement helped bolster the Nasdaq Golden Dragon China Index, a gauge of the performance of publicly-traded businesses in the U.S. that have the majority of their operations conducted in China, by 3.2%.
However, sentiment was dented on Monday after the release of the latest inflation data from the National Bureau of Statistics pointed to sluggishness in the country's post-COVID recovery.
China's producer price index fell by 5.4% annually last month, the sharpest fall since 2015 and steeper than analysts' estimates of 5.0%, as domestic and foreign demand both weakened.
Additionally, consumer prices were flat year-on-year due to an accelerating drop in pork prices. The figure, which had been expected to increase by 0.2%, was the slowest since 2021.
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