Alibaba, Tencent, Other Chinese Stocks Are in Free Fall. It’s About Xi Jinping.

Shares in Chinese companies were plunging Monday as markets reacted to the consolidation of power by President Xi Jinping, after he was confirmed to a historic third term as leader of the world’s second-largest economy.

Alibaba


(ticker: BABA) tumbled 17%, with tech peer


JD.com


(JD) dropping 18.9%,


Tencent


(


TCEHY


) down 15.3%,


Pinduoduo


(PDD) falling 31%, and


Baidu


(BIDU) 18.4% into the red. Electric-vehicle maker


Nio


(NIO) shed 22%. Hong Kong’s


Hang Seng Index


closed 6.4% lower, seeing its worst one-day rout since 2008.