What happened?
It’s a total bloodbath for Chinese stocks today.
The Hang Seng Index fell by 6.4% to a 13-year low. The Hang Seng China Enterprises Index, a benchmark of Chinese stocks listed in Hong Kong, plunged 7.3%.
Alibaba fell close to 20% to a low of $58.01 in the first hour of US trading. Chinese EV makers like NIO and Xpeng also saw price declines of close to 20%.
It seems like investors who were awaiting some good news to come out from the Communist Party Congress over the past week were sorely disappointed.
Source: Google
Why did Chinese stocks fall?
#1 – Xi Jinping gains more control
In case you have not been following the Communist Party Congress, the one thing that has become clear is that President Xi Jinping has cemented his power.
Apart from securing a third term as President, Xi also filled the party’s top ranks with those who are seen to be loyal to him....