Why Chinese Tech Stocks Were Tumbling Again Today
After Chinese tech stocks plunged sharply last week, the rout continued on Monday with several notable names falling by double-digit percentages -- among them, JD.com (NASDAQ: JD), Hello Group (NASDAQ: MOMO), Baozun (NASDAQ: BZUN), iQIYI (NASDAQ: IQ), and Zhihu (NYSE: ZH).
Once again, several different news items contributed to the negativity powering the sell-off.
First, news outlets reported over the weekend that Russia had asked China for military assistance in its invasion of Ukraine, and economic aid to combat the harsh sanctions Western countries have imposed in response to it. It's unclear what China will do, but if that nation provides material aid to Russia, it could lead the U.S., European nations, and other countries to impose sanctions on China, which would further squeeze its economy at a vulnerable time.
Source Fool.com
