Shares of US-listed Chinese firms have fallen on concerns that President Xi Jinping will continue his ideological approach at the expense of economic growth.
Chinese technology giants Alibaba and Baidu fell more than 12 percent in New York.
Investors fear the world’s second-largest economy will be held back by its strict coronavirus restrictions.
One analyst said Beijing was in a “tug-of-war” between measures to boost growth and its zero-covid policies.
On Monday, shares of technology giant Alibaba closed down 12.5 percent on the New York Stock Exchange, hitting a 52-week low earlier in the day.
Internet giant Baidu lost 12.6 percent, while e-commerce platform Pinduoduo fell nearly 25 percent.
It comes after China’s ruling Communist Party closed its second congress in a decade on Sunday.
During the week-long ceremony that saw President Xi Jinping secure a historic third term in charge, he offered no timeline for easing the country’s strict measures to slow the spread of the coronavirus.
Zero-covid policies have seen some of China’s biggest cities go into lockdown, including financial, manufacturing and shipping hub Shanghai.
Manu Liu, from BNP Paribas Asset Management, told that China’s economy is facing “policy stimulus and a number of growth challenges, including Covid-19 restrictions, a property market slowdown and a slowdown in exports.” “
“We expect the [Chinese] government to face continued domestic pressure on its zero-covid policy,” he said.
Although official data published on Monday showed that the economy grew at a better-than-expected rate between July and September, “there are still signs of stress due to the ongoing Covid-19 outbreak and property weakness.” consumption has been weak due to the
“With the lack of clarity, people are assuming that the direction we’ve seen is going to be stronger. That’s why the sell-off and the growing expectations of the Chinese economy going forward,” Natix Sr. Economist Trinh Nguyen told.
On Tuesday, stock markets in Hong Kong and mainland China regained some ground after sliding the previous day.
Hong Kong’s benchmark Hang Seng index fell more than 6 percent on Monday, while the Shanghai Composite fell 2 percent.
