Chinese Markets in Turmoil: 7 Stocks ARK Invest Is Dumping

Investing

Published: July 27, 2021 10:55 am

For those late to the party, Chinese markets have been getting beat up, with the Hang Seng Index posting massive back-to-back losses. These losses have wiped out all of the gains for the index in 2021. Investors with Chinese stocks in their portfolio should pay heed as famed tech investor Cathie Wood is dumping some of ARK Invests’ Chinese holdings.

Precipitating this drop is a summit between China and the United States regarding the state of trade between these economic superpowers. As it stands now, there seems to be a “stalemate” between these two nations and they could be facing “serious difficulties,” leaving investors unsure of what’s to come.

At the same time, China’s antitrust regulator slapped a fine on Tencent for anti-competitive behavior, shaking confidence in major Chinese internet companies. DiDi was the victim of this recently as well.

Note that the Hang Seng was down 4.1% on Monday and 4.5% on Tuesday. The Shanghai Composite Index was down 2.3% and 2.5%, respectively.

All this, and perhaps more, has lead ETF superstar Cathie Wood to reconsider some of ARK Invest’s holdings. Check out a more complete list of the firm’s Monday Buys and Sells too. 24/7 Wall St. is taking a close look at which big Chinese stocks are getting the boot. At least four of these stocks are trading right at 52-week lows.

JD.com Inc. (NASDAQ: JD) shares were last seen down 6% to $61.88, in a 52-week trading range of $59.90 to $108.29. The consensus analyst price target is $103.24. The stock is down 25% year to date, but in the past week, the stock is down 11%. ARK Fintech Innovation ETF (NYSEARCA: ARKF) sold 318,465 shares, ARK Next Generation Internet ETF (NYSEARCA: ARKW) sold 651,175 shares and ARK Space Exploration & Innovation ETF (NYSEARCA: ARKX) sold 750 shares. A total of 970,390 shares were sold by ARK Invest funds.

Tencent Holdings Ltd. (TCEHY) shares were down 6% to $56.55, in a 52-week range of $56.25 to $99.40. The consensus price target is $92.94. ARKF sold 629,884 shares.

Pinduoduo Inc. (NASDAQ: PDD) stock recently traded down 7%, at $82.50 in a 52-week range of $69.89 to $212.60. Analysts have a consensus price target of $168.42. The stock is down 50% year to date, but in the past week, the stock is down 15%. ARKF sold 116,153 shares.

Alibaba Group Holding Ltd. (NYSE: BABA) shares were down about 4% to $184.51. The 52-week range is $182.80 to $319.32, and the consensus price target is $292.21. The stock is down 18% year to date, but in the past week, the stock is down 8%. ARKF sold 99,797 shares and ARKX sold 7,970 shares. ARK Invest funds sold a total of 107,767 shares.

Baidu Inc. (NASDAQ: BIDU) shares traded down over 3% to $156.85, within a 52-week range of $114.75 to $354.82. The consensus price target is $308.42. The stock is down 25% year to date, but in the past week, the stock is down 8%. ARK Autonomous Technology & Robotics ETF (NYSEARCA: ARKQ) sold 57,815 shares.

Kanzhun Ltd. (NASDAQ: BZ) shares were last seen down 8%, at $28.43 in a 52-week range of $28.17 to $44.96. The stock is down 17% year to date, but in the past week, the stock is down 11%. ARKW sold 24,732 shares.

KE Holdings Inc. (NYSE: BEKE) stock recently traded down 4% to $23.39. The 52-week range is $22.02 to $79.40. Analysts have a consensus price target of $73.76. The stock is down 60% year to date, but in the past week, the stock is down 34%. ARKF sold 1,282,200 shares, ARK Innovation ETF (NYSEARCA: ARKK) sold 100,000 shares and ARKW sold 3,200 shares. ARK Invest funds sold a total of 1,385,400 shares.