In New York, Chinese technology behemoths Alibaba and Baidu fell more than 12%.

Investors are concerned that the world’s second-largest economy will be hampered by coronavirus restrictions.

According to one analyst, Beijing is engaged in a “tug-of-war” between stimulus measures and its zero-Covid policies.

Alibaba shares closed 12.5% lower on the New York Stock Exchange on Monday, after hitting a 52-week low earlier in the day.

Baidu fell 12.6%, while Pinduoduo, an e-commerce platform, fell nearly 25%.

China shares slide in US as Xi starts historic third term

China Shares Slide In Us As Xi Starts Historic Third Term

It comes after China’s ruling Communist Party concluded its biennial congress on Sunday.

 

 

During the week-long event, President Xi, who secured a historic third term in office, provided no timeline for the country’s strict measures to slow economic growth.

 

 

The zero Covid policies have resulted in the closure of some of China’s most important cities, including Shanghai, the country’s financial, manufacturing, and shipping hub.

 

 

According to Minyue Liu of BNP Paribas Asset Management, China’s economy is facing “policy stimulus and multiple growth headwinds including Covid restrictions, a property market downturn, and slowing exports.”

 

 

“We anticipate continued domestic pressure on the [Chinese] government’s zero-Covid policy,” she said.

 

 

Although official data released on Monday showed that the economy grew faster than expected between July and September, “there were still signs of stress as consumption has remained weak due to ongoing Covid-19 flare ups and property weakness,” Erin Xin, Greater China economist at HSBC, said in a note to investors.

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