Why PDD Holdings, Li Auto, and JD.com Slipped Today
Chinese stocks pulled back broadly on Wednesday morning, failing to maintain the boost they got from stimulus measures and interest rate cut announcements yesterday, as the group tries to find momentum amid a struggling Chinese economy.
Shares of the e-commerce giants PDD Holdings (NASDAQ: PDD) and JD.com (NASDAQ: JD) had both fallen as much as roughly 3% and 5%, respectively, earlier this morning before paring some of those losses. Meanwhile, shares of Li Auto (NASDAQ: LI) also traded nearly 5% down this morning before recouping some of those losses.
After the Federal Reserve lowered the target range of its federal funds rate by a half point last week, the Chinese government yesterday rolled out stimulus measures. Those stimulus measures included lower reserve requirements for banks and efforts to stimulate the housing market, including lower mortgage rates and down payments. The People's Bank of China (PBOC) also said it would inject capital into Chinese funds, insurance companies, and banks that those companies could use to buy stocks and repurchase their own stock.
Source Fool.com
