Pinduoduo, JD.com, and other Chinese ADRs tumble after China’s Party congress

Yahoo Finance’s Jared Blikre breaks down how U.S.-listed Chinese stocks are trading on Xi Jinping’s third term.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: Jared, what are you seeing?

JARED BLIKRE: Well, let's take a look at the YFi Interactive here because we see some negative action-- not only in Shanghai, where the Shanghai Composite is down 2%, but also in Hong Kong. Now, this is more tech heavy. And this is going to be representative of what some of the ADR, some of those shares that they have listed in the United States.

Now, you can see it's down 41%. That is the Hang Seng over the prior year. But I want to show you a max chart here because we have just sunk to the lowest levels since the global financial crisis. And this has implications for a number of stocks and sectors, especially in the US.

Now, let me just flip to some of these stocks and ADRs that we're tracking today, at least in the premarket. I haven't seen moves like this on some of these individual names in some time. And you can see the list here. We have GDS down 17%. Pinduoduo down 16%. Jd.com down 14%.

And when you take a look at how much these stocks are already off of their 52-week highs, you just really get a sense of some of the damage here. A lot of these stocks on the bottom row, all of them down 77% or more. And some of them down a significantly more percentage today.

Now, I just want to show you some of the currency movements as well. I've been hammering this home recently, which is the US dollar-- the incredible US dollar strength has been giving equities a hard time here. And here's what we're seeing in the US dollar today.

Now, this is US dollar versus all of these other currencies. But I just want to show you what's happening with the UN here. We can see it trading-- this is the onshore. The offshore, by the way, trading even higher. In fact, a headline just passing that Michael Kelly, one of our top editors just shared, China offshore Yuan weakens past 7.3 per dollar for the first time ever.

We put a max chart here. And you can see, we have actually exceeded the levels that we had in 2005, '06, '07, and '08. And that was around the time that the offshore trading, I believe, became available there. So lots of things to be unpacked, guys.

BRAD SMITH: Jared, appreciate the context there in unpacking at least the currency side of this all this morning. Thanks