More and more companies in Asia have bought back shares in recent weeks. Chinese internet giant Alibaba has said it will increase its share buyback program from $15 billion to $25 billion.

Sheldon Cooper, SOPA Images | Light Rocket | Getty Images

Shares of US-listed Chinese companies fell sharply on Monday after Beijing tightened President Xi Jinping’s grip on power, tightening investor sentiment for non-state companies.

The Invesco Golden Dragon China ETF, which tracks the Nasdaq Goldman Dragon China Index, fell 14.5% to hit its lowest level since 2009. The ETF fell more than 20% at one point on Monday. The index holds 65 companies whose common stock is publicly traded in the US and most of their business is conducted within the People’s Republic of China.

There will be a shift towards a more Mao-type China than a Xi-type China, says Mark Mobius

Under Xi’s leadership, China has implemented a series of policies that have tightened regulation of the technology sector in areas ranging from data protection to controlling the way algorithms can be used.

Meanwhile, Xi has stuck to a strict “zero-Covid” policy that has seen cities, including mega financial hub Shanghai, locked down this year, even as most of the world has shut down its economies. opening.

“Stocks based in the world’s second largest economy are ‘uninvestable’ again,” Mark Schilsky of Bernstein’s trading desk said in a note on Monday.

Hong Kong’s Hang Seng index fell 6.36% to its lowest levels since April 2009. The Shanghai Composite and the Shenzhen Composite in mainland China lost about 2%.

Wall Street chief strategist Marko Kolanovic of JPMorgan believes the sell-off in Chinese stocks has been disconnected from fundamentals, presenting a buying opportunity.

— CNBCs Arjun Kharpal reporting helped.

Source link