Why JD.Com And Pinduoduo Shares Are Diving

JD.Com Inc JD and Pinduoduo Inc - ADR PDD shares are trading lower by 6.17% to $52.61 and 3.31% to $67.83, respectively, Monday morning. Shares of Chinese companies are trading lower amid an outbreak of COVID-19 in the country resulting in restrictive measures which impact economic activity.

What Happened?

Chaoyang, which is Beijing's most populous district, has asked residents to stay at home on Monday, extending a call from the weekend as the city's COVID-19 case numbers rose, reported Reuters. The country's first COVID-related death in Beijing also spurred worries of more severe restrictions, according to Bloomberg.

China kept its benchmark lending rates unchanged for the third straight month, with the one-year loan prime rate maintained at 3.65%, while the five-year LPR was unchanged at 4.30%...Read More

According to data from Benzinga Pro:

• JD has a 52-week high of $92.69 and a 52-week low of $33.17
• PDD has a 52-week high of $84.06 and a 52-week low of $23.21