U.S.—listed Chinese stocks tumbled for five days in a row, marking the longest losing streak since April as Beijing signaled that it would persist with its controversial zero-COVID policy under a dim economic outlook.
According to Bloomberg, the Nasdaq Golden Dragon China Index dropped 3.4% on Tuesday. The index measures Chinese stocks listed in New York, and it has been falling 15% for the last five trading sections.
Among tech firms in the index suffered the loss, Alibaba lost 4.9%, Baidu fell 5.6%, Pinduoduo was down 4.4%, and JD.com decreased 2.8%.
In Hong Kong, the Hang Seng Index keeps falling for five consecutive days, losing 7.67%. The index has lost nearly 30% so far for the year.
Investors’ sentiment is hurt over China’s economic outlook, its ongoing property crisis, and recent U.S. restrictions on exports of advanced chips to China.
On Wednesday, Asian stocks also marked two-year lows amid COVID news from China, a surging strong dollar, and an unstable U.K. bond market that hurt global investor sentiment.
People’s Daily, the official newspaper of the Chinese Communist Party, has warned for three days in a row that China must stick with the zero-Covid policy. The newspaper claims that the policy stabilizes the country’s economy and protects lives.
The move comes less than a week before the 20th national congress of the Chinese Communist Party.
Due to increased COVID cases, Shanghai and other major Chinese cities have tightened control measures by requiring residents to take COVID tests at least twice a week.