Chinese stocks listed in the US suffered their worst session in months, with the Nasdaq Golden Dragon China Index sliding 3.5% on Thursday.
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Nasdaq Golden Dragon index drops 3.5% as Chinese ADRs sell off
Chinese stocks listed in the US suffered their worst session in months, with the Nasdaq Golden Dragon China Index sliding 3.5% on Thursday.
The Nasdaq Golden Dragon China Index fell 3.5% in preliminary trading on Thursday, bringing its weekly decline to 3.3%, as a broad selloff swept across Chinese American depositary receipts. The drop contrasted sharply with the broader US market, where the Dow Jones Industrial Average rose 1.7% to a fresh record close and the S&P 500 added 0.4%, while the Nasdaq Composite edged slightly lower.
Atess Solar led the decliners, plunging 11.7%, while Baidu dropped 9.7% and Pony AI fell 9.2%. Huazhu Group was the lone bright spot, edging up 0.6%. The weakness in Chinese names stood in contrast to parts of the US tech sector, where Nvidia rose nearly 2%, though semiconductor names were mixed — Broadcom tumbled more than 12% and Micron Technology slid 7.7%.
The selloff coincided with a rise in US initial jobless claims to 225,000, the highest since February, and data showing US companies cut 97,000 jobs in May — the most for the period since 2020. The 10-year US Treasury yield closed at 4.481%, while the US dollar index edged down 0.09% to 99.44. Gold rebounded 0.94% to $4,475.58 an ounce, while WTI crude fell 3.48% to $94.49 a barrel.
The divergence between Chinese ADRs and the broader US market highlights the idiosyncratic risks facing China-exposed equities. The weekly decline of 3.3% marks the index's worst weekly performance in recent months, with losses concentrated in solar and internet names. Traders now face a key test with Friday's May nonfarm payrolls report, which could determine whether the risk-off tone spreads to broader markets. A stronger-than-expected reading would reinforce the higher-for-longer rate narrative that has weighed on growth-sensitive assets, while a miss could ease pressure on emerging-market equities and potentially stem further losses in Chinese ADRs.
This article is for informational purposes only and does not constitute investment advice.
[1] Nasdaq Golden Dragon China Index initially fell 3.5% at close, down 3.3% for the week[2] Overnight U.S. Stocks | The three major indices were mixed, with the Dow hitting a record high; Micron Technology (MU.US) fell 7.7%. - Moomoo[3] U.S. stocks closed higher on Thursday, with the Dow Jones up 1.7% to a new closing high, the S&P 500 rising 0.4%, and the Nasdaq Composite edging slightly lower. - Bitget[4] U.S. Stocks Overnight | Mixed Performance Across the Three Major Indices; Dow Hits Record High, Micron Technology (MU.US) Falls 7.7% - 富途牛牛[5] 澤倫斯基公開致訊普丁提議舉行會晤，日本央行釋放6月加息訊號！ - top1markets.com
