Why Is Xpeng (XPEV) Stock Down 13% Today?
Xpeng (NYSE:XPEV) stock is falling on Friday alongside other Chinese stocks as President Xi Jinping prepares for a third term in China.
President Xi has been growing in power and continues to do so with his latest moves. That includes filling out the Politburo standing committee with members loyal to him. This is important to note as that’s the main group of power in the Communist Party of China.
This has several investors worried about what the future holds for XPEV stock, as well as other Chinese stocks. President Xi ‘s Zero Covid policy has been putting extreme strain on China’s economy and he doesn’t seem ready to loosen up yet.
That policy brings with it lockdowns that have been causing problems for Chinese companies. Among these issues are supply chain constraints as workers are unable to leave home and attend their jobs.
Xi Abolished China’s Two-Term Limit
Investors will also note that President Xi taking on a third term is unprecedented. That’s because prior to 2018, China had term limits in place that only allowed for two terms. Of course, President Xi abolished that limit while holding office.
Today’s news has shares of XPEV stock seeing heavy trading. As of this writing, more than 49 million shares have changed hands. That’s an large jump from its daily average trading volume of about 18 million shares.
XPEV stock is down 13.4% as of Monday afternoon.
Investors looking for the latest stock market news out of China are in luck!
We’ve got extensive coverage of the situation ready to go today! A few examples include how it’s affecting shares of Nio (NYSE:NIO), Taiwan Semiconductor (NYSE:TSM), and other Chinese stocks on Monday. You can catch up on all of that news today below!
More China Stocks News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.