Yum China Holdings Inc YUMC shares are trading lower Monday alongside several Chinese stocks after Chinese President Xi Jinping secured his third term in power and named loyalists to the Politburo Standing Committee.
The Central Committee of the Chinese Communist Party has elected Xi as its general secretary for another five-year term. He was first elected in 2012 and his second term was due to end this year.
Related Link: China's Xi Jinping Secures Third Term: What You Need To Know
Under Xi, China has cracked down on big tech companies citing data protection concerns. Xi has also stuck to his strict zero-COVID policy which has led to extended lockdowns in several Chinese cities while most of the world has reopened.
Investors appear to be concerned about the potential for continued strict Chinese policy in the wake of Xi's re-election to general secretary.
Yum China is the largest restaurant chain in China. It generates revenue through its own restaurants, as well as via franchise fees.
YUMC Price Action: Yum China was down 14.1% at $38.78 at time of publication, according to Benzinga Pro.
Photo: Markus Winkler from Pixabay.
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