The dramatic sell-off in Chinese stocks that followed confirmation of President Xi Jinping’s third term in power hammered companies popular with big fund managers, suggesting billions of dollars of losses for those who stuck by their portfolios.
The Nasdaq Golden Dragon index, which tracks US-listed shares in Chinese companies, shed 14.4 per cent on Monday in its largest one-day fall on record, bringing its decline to about 50 per cent this year. Stocks such as Alibaba, JD.com and Pinduoduo all tumbled.
Hong Kong’s benchmark Hang Seng index suffered its biggest single-day drop since November 2008 on Monday. It declined as much as 1.6 per cent in early trading on Tuesday, while China’s CSI 300 fell as much as 1 per cent, before they pared their losses.