Nio, Alibaba, JD Crash In Pre-Market, Hong Kong As Analyst Says Expect US-China Relations To Remain Turbulent For 'Some Time'

Shares of major Chinese tech companies listed in the United States tanked both in the pre-market session in New York and extended losses in Hong Kong on Tuesday from the previous session as a political analyst said he expects rivalry between the U.S. and China to persist for “some time.”

What Happened: Scott Kennedy of the Washington D.C.-based think tank Center for Strategic and International Studies told CNBC that the rivalry is likely to continue for some time after the U.S. and China set “unreachable” demands for each other during their high-level meetings in the Chinese city of Tianjin on Monday.

“I think it’s going to be really hard, so we may see this relationship solidifying like a hard concrete into a rivalry which may be with us for some time,” Kennedy said.

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Hong Kong-listed shares of JD.com Inc. JD fell 10.6% in Tuesday's afternoon trade, while Tencent Holdings Limited TCEHY dropped 8.9%, Baidu Inc. BIDU fell 7.9% and Alibaba Group Holding Limited BABA tumbled 7.7%. The benchmark Hang Seng Index is down 4.4%.

Alibaba shares traded 4.1% lower in the pre-market session at press time on Tuesday. JD traded 6.3% lower, Tencent traded mostly unchanged, and Baidu traded 5.5% lower.

Popular electric vehicle maker Nio Inc NIO, which is also seeking to list in Hong Kong, was also down in the pre-market session by 3.4%.

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

Why It Matters: The shares of Chinese tech companies, including Jack Ma-led Alibaba, had fallen in the U.S. on Monday as investors weighed reports the U.S.-China relationship is in a “stalemate” following a meeting between officials from the two countries.

Chinese stocks in the U.S. and Hong Kong also came under pressure after the Chinese government cracked down on for-profit education companies in the country. The move comes after the government crackdown on big Chinese tech firms.