US MARKETS

Chinese firms' US-listed stocks fall as broader market dips on retail data

PUBLISHED : Saturday, 14 November, 2015, 12:50am
UPDATED : Saturday, 14 November, 2015, 12:50am

The American Depositary Receipts of most Chinese firms fell on Friday morning, alongside the main US stock indices, after weaker-than-expected retail sales numbers added to concerns about the US growth prospect while policymakers are considering an interest rate cut as soon as next month.

The ADRs of Chinese online discount retailer Vipshop Holdings tumbled after the release of a preliminary earnings report for the third quarter, of 8.6 billion yuan to 8.7 billion yuan, missing its previous guidance for 9.1 billion yuan to 9.3 billion yuan.

Its shares traded down 27.9 per cent to US$13.43 in morning trade, continuing a downward trend throughout the week. They once traded at a nine-month low of US$12.87 in the session.

The country’s online classified advertisement platform 58.com fell 4.73 per cent to US$51.6.

But Soufun Holdings, an online real estate portal, surged 11.89 per cent in the morning to US$7.81. Shares of New Oriental Education & Technology Group also increased 1.28 per cent to US$29.20.

The four firms are part of the 14 technology-oriented Chinese companies, announced on Thursday, to be added to MSCI’s US$3.5 trillion market-cap Emerging Markets index. Other names include Alibaba, Baidu, Ctrip.com, JD.com, Qihoo 360 Technology and Youku Tudou.

MSCI said adding the US-listed Chinese firms to the index is not a gateway for the long-anticipated A-share inclusion.

The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF fell 2.5 per cent to US$36.48 in mid-morning trade. The iShares China Large-Cap ETF tracking Hong Kong shares traded down 2 per cent to US$37.11.

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