PDD - Alibaba Weibo highlight mixed day for Chinese tech stocks

2023-03-06 12:40:15 ET

Chinese tech stocks put in a mixed performance Monday to start the week, amid reports that business between graphics chipmaker Nvidia ( NASDAQ: NVDA ) and Chinese tech giant Huawei could be on the rocks.

Prior to the start of trading, a report from Reuters said that Nvidia's ( NVDA ) plans to sell its graphics chips to Huawei might be at risk due to the Biden Administration considering more restrictions that could clamp down on sales by U.S. companies to the Chinese company because of its ties to China's government and military.

The Huawei matter brings up ongoing concerns about the relationship between Chinese companies and the Beijing government, and how business could be affected if U.S. tech companies are kept from selling their products in China.

Among leading Chinese tech companies, Alibaba ( NYSE: BABA ) and NetEase ( NTES ) both edged up by 1%, while Tencent Holdings ( OTCPK:TCEHY ) dipped by 1.4%, Baidu ( BIDU ) shares gave up 1.7%, Weibo ( NASDAQ: WB ) was down by 3.5%, and JOYY Inc. ( YY ) fell almost 2%.

The KraneShares CSI China Internet ETF ( KWEB ) was down by 1.2%.

IQIYI ( IQ ) shares dipped sightly, and hovered near the stock's breakeven line. Before the market opened, Goldman Sachs analyst Lincoln King raised his rating on the Chinese online entertainment platform to buy from neutral due to factors such as its strong "in-house" content .

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