Shares of several Chinese stocks including KANZHUN Ltd (NASDAQ: BZ), ZTO Express Inc (NYSE: ZTO) and Chindata Group Holdings Ltd (NASDAQ: CD) are trading lower Monday after Chinese President Xi Jinping secured his third term in power and named loyalists to the Politburo Standing Committee.
The Central Committee of the Chinese Communist Party has elected Xi as its general secretary for another five-year term. He was first elected in 2012 and his second term was due to end this year.
Related Link: China's Xi Jinping Secures Third Term: What You Need To Know
Under Xi’s leadership, China has cracked down on big tech companies citing data protection concerns. Xi has also stuck to his strict zero-COVID policy which has led to extended lockdowns in several Chinese cities while most of the world has reopened.
Investors appear to be concerned about the potential for continued strict Chinese policy in the wake of Xi's re-election to general secretary.
Kanzhun runs a Chinese online recruitment platform called BOSS Zhipin. ZTO is a comprehensive logistics service enterprise with express delivery as its core business. Chindata is a hyperscale data center solution provider focused on China, India and Southeast Asia markets.
BZ, ZTO, CD Price Action: At time of publication, Kanzhun was down 22.3% at $11.06, ZTO was down 22.8% at $16.55 and Chindata was down 16.5% at $5.70.
Photo: Leslin_Liu from Pixabay.
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