ARK Invest Doubles Down on Selling Chinese Stocks

Chinese markets were mixed on Wednesday but they had a rough start to the week. 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. Although the Hang Seng bounced back Wednesday (the SSE was not as lucky), investors are still dumping Chinese stocks. One of the major players cleaning up their portfolio is Cathie Wood.

Despite the sell-off on Monday and Tuesday, some of these stocks are bouncing back with force. Whether this will persist remains to be seen, but for now investors seem to be crowding back into some of these names early on Wednesday.

Precipitating the drop earlier this week was 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.

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 Tuesday Buys and Sells too. 24/7 Wall St. is taking a close look at which big Chinese stocks are getting the boot. A handful of these stocks are trading right at 52-week lows.

JD.com Inc. (NASDAQ: JD) shares were last seen up 8% to $69.82, in a 52-week trading range of $59.90 to $108.29. The consensus price target is $103.24. The stock is down 26% year to date, but in the past week, the stock is down 12%. ARKF sold 259,873 shares, ARKQ sold 324,068 shares and ARKW sold 405,495 shares. A total of 989,436 shares were sold by ARK Invest funds.

Pinduoduo Inc. (NASDAQ: PDD) stock recently traded up 11%, at $88.10 in a 52-week range of $69.89 to $212.60. Analysts have a consensus price target of $168.42. The stock is down 55% year to date, but in the past week, the stock is down 22%. ARKF sold 182,575 shares and ARKW sold 726,516 shares. A total of 909,091 shares were sold by ARK funds.

Baidu Inc. (NASDAQ: BIDU) shares traded up 4% to $164.15, within a 52-week range of $115.59 to $354.82. The consensus price target is $308.42. The stock is down 27% year to date, but in the past week, the stock is down 11%. ARKQ sold 116,556 shares.

Kanzhun Ltd. (NASDAQ: BZ) shares were last seen up nearly 8%, at $31.74 in a 52-week range of $27.90 to $44.96. The stock is down 21% year to date, but in the past week, the stock is down 16%. ARKQ sold 236,700 shares and ARKW sold 775,783 shares.

Tencent Holdings Ltd. (TCEHY) shares were down 2% to $58.90, in a 52-week range of $55.77 to $99.40. The consensus price target is $92.94. ARKW sold 284,600 shares and ARKX sold 67,800 shares.

BYD Co. Ltd (BYDDY) shares were down about 6% to $52.22. The 52-week range is $17.79 to $72.91. ARKQ sold 80,951 shares.

Ping An Healthcare and Technology Co. Ltd. (1833.HK) shares traded up over 3% to $68.85 (in Hong Kong dollars), within a 52-week range of HK$64.25 to HK$148.50. The consensus price target is HK$58.53. The stock is down 25% year to date, but in the past week, the stock is down 8%. ARKF sold 2,097,800 shares.

Meituan (3690.HK) shares were up about 6% to HK$206.40. The 52-week range is HK$187.00 to HK$460.00. The stock is down 18% year to date, but in the past week, the stock is down 8%. ARKF sold 1,257,639 shares.

JD Logistics (2618.HK) shares were last seen up 1.9%, at HK$27.30 in a 52-week range of HK$25.25 to HK$48.15. The stock is down 17% year to date, but in the past week, the stock is down 11%. ARKX sold 3,133,785 shares.

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