Major Chinese tech stocks fell on Tuesday as the sector lost ground with the broader market feeling the impact of another searing report on US inflation.
Before trading begins, the consumer price The August index report has been released, which posted an 8.3% gain compared to the same month a year ago, and above expectations of a rate of 8.1%. Core CPI also rose 6.3% from a year ago, compared to expectations of 6.1%.
All major US stock indices dipped into the red after the CPI report, with the Dow Industrials (DJI) down more than 800 points, and the Nasdaq Composite (COMP.IND) and S&P 500 (SP500) both down more than 3%.
It was a case of guilt by association for Chinese tech stocks, with decliners dominating the day’s trading activity.
Ali Baba (NYSE: BABY) shares fell more than 4%, Tencent Holdings (OTCPK:TCEHY) fell 2.5%, Baidu (BIDU) fell 4%, Weibo (WB) lost 2.6%, Pinduoduo (PDD) fell 3% and Bilibili (BILI) and JD.com (JD) each lost more than 5% as trading rose.
The KraneShares CSI China Internet ETF (KWEB) lost 2.6%.
NetEase (NASDAQ:NTES) was one of the few frontrunners of any type, as its shares only rose 1%. NetEase (NTES) got a lift after the Chinese government gave its go to one of the company’s mobile games this month. It was the first time a NetEase (NTES) had obtained approval from Chinese authorities for a game since July 2021.
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