![]() Data by YCharts 'Sell first, ask questions later' for iQIYI, but bright spots aplentyįollowing the announcement of iQIYI's ( NASDAQ: IQ) Q2 2019 report, shares of the media company initially fell almost 10 percent after hours on Monday but it managed to claw back the losses and more on Tuesday. Hence, allow me to provide an overview of the week's share price movements of the top few holdings of KWEB as compared with the ETF itself for convenient references in the subsequent sections. As explained in a past issue of the Chinese Internet Weekly, I find this ETF holding the most representative stocks in the sector. It was dragged down by steep losses in key holdings such as Alibaba Group ( BABA ), NetEase ( NTES ), and JD.com ( JD ), while strong performance in Pinduoduo ( PDD ) and Baidu ( NASDAQ: BIDU ) following their better-than-expected earnings ameliorated the pain. The sector representative ETF, the KraneShares CSI China Internet ETF ( NYSEARCA: KWEB) dipped into negative territory for the week, despite having gains up until Thursday. and China continues to wear the patience of even long-term investors down, exacerbated by the general perception that the Chinese side is suffering more. Third, the seemingly unending trading of blows between the U.S. Second, the resultant negative impact on economic growth would certainly show up in the financials of most businesses, including those in the Chinese internet sector ( NYSEARCA: CQQQ) ( NYSEARCA: FXI). First, many internet companies are e-commerce-related and it's inevitable that on the surface of it, the escalation in the trade war would be detrimental. businesses to reduce their reliance on China.įor the Chinese tech stocks, the latest episode is a triple whammy. Indeed, hours after the Chinese side returned fire, President Trump made good on his promise for a tit-for-tat, against the counsel of his advisers. The greater damage to investor sentiment, though, could be the realization that China isn't going to back down, and the White House isn't either. The exception would be U.S.-made cars where the resumption of a suspended 25 percent additional duty from December 15, and an extra 10 percent for some vehicles, as well as existing general duties on automotive, the total effective tariff could reach as high as 50 percent. The Chinese consumers are probably not going to sweat over minor price increases following the addition of a 5-10 percent tariff on the goods affected. imposition of the 10 percent additional tariffs on $300 billion worth of Chinese imports. ![]() That was the case until Friday when the Chinese government retaliated to the U.S. It would have been a ho-hum week, driven by sporadic earnings releases. ![]()
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