Why NIO Stock Hit A New 52-Week Low Today

NIO Inc - ADR NIO shares are trading lower by 5.06% to $7.42 Tuesday afternoon. Shares of several Chinese companies are trading lower following weak China manufacturing data.

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What's Happening In China?

Per a report by SCMP, Chinese manufacturing shrank in April, with the official index falling to 49.2 in April from 51.9 in March.

The index reading was “significantly lower than consensus and our own expectations,” indicating “sluggish end-demand,” Goldman Sachs said in a report cited by the SCMP.

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While May Day data showed improved mobility, the key questions are whether they would translate into robust consumer spending, the U.S. bank said, reported SCMP.

U.S. listed Chinese stocks may also be experiencing selling pressure Tuesday amid a broader U.S. market selloff. Stocks across sectors are lower amid regional banking sector worries and concerns over the US potentially reaching the debt limit by June 1. Investors also await Wednesday's Fed decision.

According to data from Benzinga Pro, NIO has a 52-week high of $24.43 and a 52-week low of $7.33.

Picture via WikiMedia Commons