Why Baidu, PDD Holdings, and JD.com Fell This Week

Chinese stocks pulled back this week as investors questioned how much stimulus the Chinese government would implement. Doubt has also started to creep in about the direction of inflation and how much the Federal Reserve will cut interest rates in the U.S.Shares of the search engine giant and artificial intelligence company Baidu (NASDAQ: BIDU) declined more than 11% this week, as of late Thursday afternoon. Shares of the e-commerce companies PDD Holdings (NASDAQ: PDD) and JD.com (NASDAQ: JD) traded 14.6% and 11.4% lower, respectively.Several weeks ago, China's government and central bank unveiled new stimulus measures to help the country's economy, which is dealing with weak consumer demand, a housing downturn, and high unemployment. The central bank lowered interest rates, mortgage rates, and bank reserve requirements and said it intends to inject capital into financial firms in the country. A surprise Politburo gathering added a sense of urgency and seemed to assure the market that the Chinese government was serious.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool