Stocks across mainland China, as well as Hong Kong, plunged on Monday as expectations regarding the continuation of key policies like Covid Zero intensified following President Xi Jinping’s historic consolidation of power.
Chinese stocks plunged by the most since 2008 in Hong Kong — but if you get your content from the Chinese state media, it would appear as if the market rout didn't happen at all.
The country's top financial newspapers allocated most of their front page coverage to official news articles about President Xi, including his meeting with top military leaders and Communist Party officials’ interpretation of Xi’s keynote report at the Party Congress, reported Bloomberg.
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What They Said: The Shanghai Securities News carried a brief story on its fourth page about the fall in domestic stocks without providing a reason, the report said. China Securities Journal, which is the nation’s leading securities newspaper, and Shenzhen-based Securities Times, did not cover the market reaction to the outcome of the Communist Party Congress, it added.
Shares of US-listed Chinese companies had suffered a blow with Alibaba Group Holding Ltd BABA closing over 12% lower on Monday and Tencent Holdings TCEHY ending the session down over 14%. Pinduoduo Inc PDD shares plunged over 24% while shares of JD.Com Inc JD closed over 13% lower.
Shares of Chinese EV makers, too, took a hit with Nio Inc NIO stock closing over 15% down and Xpeng Inc XPEV shares losing over 11%.
Even on Weibo, there was no mention of the sell-off on its top 50 trending list Tuesday morning. “They won’t let you post anything as long as you tell the truth,” one user said, according to the report.
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