Chinese stocks are on the move Monday morning as additional context from blocks sales last week reveals what all the hubbub is about.
Last week it was revealed that Goldman Sachs (NYSE:GS) was doing large block sales of stocks such as Baidu (NASDAQ:BIDU), Vipshop (NYSE:VIPS), and Tencent Music Entertainment Group (NYSE:TME). This resulted in these stocks, as well as others like GSX Techedu (NYSE:GSX), taking a beating at that time.
Now, we know why those block sales took place. Archegos Capital Management, defaulted on margin calls at the end of last week. This left companies acting as its broker, including Goldman Sachs, having to make the block sales.
With the additional context for why the block sales were happening, these stocks are seeing extra movement again today. Let’s follow-up on them to see how they are performing.
- Baidu — Shares of Baidu stock are slightly up in pre-market trading on Monday morning. It’s also worth noting that it’s one of the stocks that recovered from the block sales news before markets closed on Friday.
- Vipshop — VIPS stock is is on the road to recovery with shares up 3.2% in early morning trading. For comparison, the stock was down 2.4% when markets closed last week.
- Tencent Music Entertainment Group — TME stock is surging 8.3% higher as of this writing following the additional context. That’s quite a jump compared to its 1.3% dip in price on Friday.
- GSX Techedu — Unfortunately for shareholders of GSX stock, it’s fall a further 2.9% in trading Monday morning. That’s on top of the stock’s 41.6% fall that it experienced when markets closed on Friday.
It’s not just Chinese stocks that are being affected by today’s news. Bank stocks are also seeing heavy volatility thanks to Archegos Capital Management defaulting on margin calls. Investors can learn more about that at this link.
Investors that want to know more about how the stock market is moving today are in luck.
InvestorPlace.com offers coverage of the market all week long with timely content. That includes coverage of Monday’s big movers, such as Relief Therapeutics Holding (OTCMKTS:RLFTF), Big Rock Partners (NASDAQ:BRPA), ViacomCBS (NASDAQ:VIAC). Investors can catch up on the latest news at the following links.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.