Shares of several Chinese names including Alibaba Group Holding Ltd BABA, JD.com Inc JD and Pinduoduo Inc PDD are trading lower Monday after the U.S. government shot down a balloon originating from China.
What Happened: Several Chinese stocks are falling after President Joe Biden on Saturday ordered the takedown of a suspected Chinese spy balloon hovering near the coast of South Carolina.
The Pentagon suggested holding off until the operation could be completed over open waters. The FAA issued a Temporary Flight Restriction to clear the airspace before the takedown was carried out, per Reuters.
After the balloon was taken out, China responded, saying it had unintentionally entered U.S. airspace “due to force majeure” and then called the U.S.’s response an “overreaction.”
“China will resolutely uphold the relevant company’s legitimate rights and interests, and at the same time reserving the right to take further actions in response,” China’s ministry of foreign affairs reportedly said in response.
Related Link: China Reacts To US Downing Of Spy Balloon: ‘Reserving The Right To Take Further Actions In Response’
U.S.-China tensions are rising following the events over the weekend and U.S.-listed Chinese stocks are falling as a result.
BABA, JD, PDD Price Action: Alibaba was down 1.96% at $104.25, JD was down 2.08% at $56.43 and Pinduoduo was down 2.98% at $92.80 at time of publication, according to Benzinga Pro.
Photo: courtesy of Alibaba.
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