Why Shares of Alibaba, JD.Com, and TAL Education Group Crashed Today
Chinese stocks fell hard this morning after China's President Xi Jinping secured an unprecedented third term, which will last for the next five years. For many decades now, Chinese presidents have been limited to two terms.
The news caught investors off guard and sent Hong Kong's benchmark Hang Seng index down 6.4% on Monday for the index's worst day since the Great Recession.
Shares of Chinese e-commerce giant Alibaba (NYSE: BABA) traded roughly 18.5% lower at 10:23 a.m. ET today. Shares of another large Chinese e-commerce company, JD.Com (NASDAQ: JD), traded 20% lower, and shares of Chinese online tutoring company TAL Education Group (NYSE: TAL) were down roughly 25%.
Source Fool.com
