U.S.-traded shares of Chinese electric vehicle makers were among those hit by a dramatic sell-off Monday, as investors soured on non-state-run Chinese companies following a weekend of dramatic political developments in China.
Shares of Li Auto ended the day down 17%, Nio’s closed nearly 16% lower, and Xpeng Motors’ dropped 12% in trading in New York, while shares of larger BYD closed down over 8%. Other prominent Chinese companies including Alibaba and Tencent Music Entertainment suffered similarly dramatic declines.
The sell-off followed a weekend in which President Xi Jinping appeared poised for an unprecedented third term as China’s leader after naming a series of loyalists to the Politburo standing committee, the inner circle of power in China’s ruling Communist Party.
Under Xi’s leadership, China’s government has increased restrictions on speech and movement and tightened regulations on technology companies. Analysts see further constraints ahead, with Bernstein’s Mark Schilsky writing in a Monday morning note that Chinese stocks are now “uninvestable.”
Xpeng separately on Monday debuted a new version of its advanced driver-assist system, called XNGP. The new system, a direct rival to Tesla’s Autopilot, allows for limited hands-free driving in some urban environments as well as on highways.