Shares of PDD Holdings (NASDAQ: PDD) were falling today as the parent of Pinduoduo and Temu was swept up in the broader fallout after a Hong Kong court ordered liquidation of China Evergrande Group, which was once China’s biggest real estate developer.
As a result, the stock was down 7.6% as of 12:20 p.m. ET on Monday.
China risk rears its head again
U.S.-listed stocks were down broadly with the iShares MSCI China ETF (NASDAQ: MCHI) down 1.9% at the same time.
Though the event doesn’t seem to have a direct impact on PDD Holdings, it highlights yet another troubled area of the Chinese economy and shows that a recovery in the world’s No. 2 economy does not seem to be in the offing.
PDD has been the rare Chinese tech stock to deliver strong returns in recent years as the company continues its rapid growth despite the broader challenges in China. However, investors…
