US-Listed Chinese Stocks Like Alibaba, JD, Nio Fall After Trump's Win - What's Going On?

The outcome of the U.S. presidential election could have consequences for China's trade policies with Donald Trump's return to office.

According to a recent report from Barclays, a renewed Trump administration might escalate U.S.-China tensions into a comprehensive trade conflict, which may prompt Chinese leaders to initiate an economic stimulus to counteract potential impacts, the Print reports.

Trump's potential tariff hikes could pressure China to expand domestic demand, while Kamala Harris' approach aligned with tech restrictions rather than new tariffs, CNBC reports.

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Chinese officials are reportedly preparing for the possible economic fallout from a Trump-led trade escalation.

A significant economic stimulus package is expected to be unveiled during the current National People's Congress (NPC) Standing Committee session, which will conclude on November 8.

This plan may be the first of several measures China introduces to sustain its economy. Additional announcements could come at the December Central Economic Work Conference and the NPC in March.

The report suggests that China might adjust its economic goals in response to these pressures.

U.S.-listed Chinese stocks Alibaba Group Holding BABA, JD.com, Inc. (NASDAQ: JD), Baidu, Inc. BIDU, NIO Inc. (NYSE: NIO), Li Auto Inc. LI, and XPeng Inc. (NYSE: XPEV) are trading lower Wednesday after Trump's victory.

China's economy showed improvement in October, driven by gains in both manufacturing and services, as stimulus measures appear to be taking effect.

The manufacturing sector ended five months of contraction, with the official purchasing managers' index (PMI) rising to 50.1, slightly above September's 49.8, SCMP reports

China's non-manufacturing PMI, which tracks services and construction, climbed to 50.2 in October, spurred largely by increased service sector activity tied to travel during the National Day holiday.

The Caixin composite PMI also reported growth, reaching 51.9, as both manufacturing and services reported gains. These metrics underscore a gradual recovery as China's economy regains momentum.

While the October PMI increases suggest a recovery, experts remain cautious about the long-term stability of China's economy.

Price Actions: At the last check on Wednesday, BABA stock was down 3.16% at $96.08 premarket. JD is down 4.70%, BIDU is down 2.64%, NIO is down 5.30%, LI is down 6.69%, and XPEV is down 5.70%.

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