Cathie Wood Further Trims Stakes In Alibaba, JD, Pinduoduo Amid Heightened Concerns Over US-China Relations

Cathie Wood-led Ark Investment Management trimmed exposure to Chinese companies as talks to improve the U.S.-China relationship continued to be in a stalemate.

What Happened: On Monday, Ark Fintech Innovation ETF ARKF and Ark Space Exploration & Innovation ETF ARKX sold some shares in Alibaba Group Holding Ltd BABA.

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While ARKF sold 99,797 shares valued at approximately $19.14 million, ARKX sold 7,970 shares worth almost $1.53 million. Alibaba Shares closed 7.15% lower on Monday at $191.76 in the regular session.

ARKF, ARKX, and Ark Next Generation Internet ETF ARKW also shed JD.com, Inc JD shares.

ARKF sold 318,465 shares of JD.com valued at $21.04 million, while ARKW and ARKX sold 651,175 and 750 shares worth $43.03 million and $49,560, respectively. On Monday, JD.com shares closed 8.59% lower at $66.08 in the regular session.

Ark Invest also sold shares of Pinduoduo Inc PDD on Monday. ARKF sold 116,153 shares of the Chinese retailer worth nearly $10.30 million. In regular trading,  Pinduoduo shares closed 8.84% lower at $88.71 on Monday.

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Why It Matters: Chinese stocks including those of the Jack Ma-led Alibaba traded lower after a meeting between U.S. and Chinese officials failed to make major headways.

Adding to the pressure on Chinese stocks were regulations introduced by the Chinese government related to for-profit education companies, which investors fear could affect other industries.

Ark Invest has continued to divest from China and earlier in the month sold shares in Tencent Holdings TCEHY and JD.com both rivals of Alibaba.

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