The U.S.-listed shares of China-based companies suffered a broad beating Friday as property developer Country Garden Holdings Co.’s financial troubles cast a pall on the group.
The Invesco Golden Dragon China exchange-traded fund PGJ, which tracks U.S.-exchange listed companies headquartered in China, dropped 4.2% in morning trading, with 65 of 73 components losing ground. In comparison, the S&P 500 SPX slipped 0.3%.
Also hurting investor sentiment toward the group was that new loans issued in July by banks in China tumbled to 345.9 billion yuan (equivalent to $47.93 billion) from 3.05 trillion yuan in June, compared with expectations of a decline to 800 billion yuan, as Dow Jones Newswires reported, an indication of weak credit demand.
Among the most-active American depositary shares (ADS) of China-based companies, Nio Inc.’s NIO,
Alibaba Group Holding Ltd.’s BABA,
The U.S.-listed shares of Country Garden CTRYF,
Elsewhere in the U.S., shares of EV maker XPeng Inc. XPEV,
The Golden Dragon ETF tacked on 7% over the past three months, while the S&P 500 gained 7.9%.