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Worst Day in 8 Months for Wall Street: Chinese Stocks Join the Plunge Led by Tech Companies

Newly listed English learning platform LAIX Inc. was the biggest loser among Chinese ADSs, tanking 15 percent on the day.

Anna Vodopyanova
    Oct 10, 2018 4:30 PM  PT
Worst Day in 8 Months for Wall Street: Chinese Stocks Join the Plunge Led by Tech Companies

Markets plunged on Wednesday, led by big tech companies including Alibaba Group Holding Ltd. (NYSE: BABA), Huami Corp. (NYSE: HMI), Weibo Corp. (Nasdaq: WB), and Pinduoduo Inc. (Nasdaq: PDD), as Wall Street lived its worst day in eight months.

The S&P 500 dropped 3.3 percent to 2,785.68 today, with the tech sector underperforming. The Dow Jones Industrial Average closed at 25,598.74, down 831.83 points. The Nasdaq Composite plummeted 4 percent to 7,422.05.

"Both the Dow and S&P 500 posted their biggest one-day drops since early February, while the Nasdaq notched its largest single day sell-off since June 24, 2016," as CNBC reported.

The Chinese ADSs monitored by CapitalWatch shared the pain, with gadget maker Huami plunging 7 percent to $9.13 per share, social network Weibo dropping 8 percent to $56.50, and Pinduoduo closing down 9 percent at $20.33 per share. E-commerce titan Alibaba also joined the plunge, ending down 6 percent, at $138.29 per share.

Newly listed app developer CooTek (Cayman) Inc. (NYSE: CTK) was down 8 percent at $7.68 per share and AI-powered English learning platform LAIX Inc. (NYSE: LAIX) was the biggest loser, tanking 15 percent to $9.19 per share.

Less tech-centered industries also saw their shares drop, with biopharma company Beigene Ltd. (Nasdaq: BGNE) shedding more than 8 percent to $130.23 per ADS and drug retailer 111 Inc. (Nasdaq: YI) taking a 6 percent dive to $10.51 per share.

As for lenders, Qudian Inc. (Nasdaq: QD), China Lending Corp. (Nasdaq: CLDC), and Yirendai Ltd. (NYSE: YRD) plunged about 11 percent each to $4.31, $1.09, and $16.05 per share, respectively.

Shares in education companies Four Seasons Education (Cayman) Inc. (NYSE: FEDU), Puxin Ltd. (NYSE: NEW), and New Oriental Education & Technology Group Inc. (NYSE: EDU) lost 12, 6, and 8 percent, respectively, on the day.

For the month, the S&P 500 and the Dow has shed more than 4.4 and 3.3 percent, respectively. The Nasdaq, meanwhile, has lost more than 7.5 percent.

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