Luckin Coffee (OTCMKTS:LKNCY) stock isn’t doing so hot as investors react to news of Chinese President Xi Jinping claiming another term.
This has shares of LKNCY stock joining several others from China that are falling hard today. That’s not too surprising, as investors haven’t been happy about the negative effects President Xi’s policies have had on China’s economy.
One of the biggest to note is his Zero Covid policy. With that, lockdowns have continued to hurt the Chinese economy. As the policy requires workers to stay home, it incurs supply chain constraints.
Xi Could Stick Around Beyond a Third Term
While President Xi has only just been confirmed for his third term, he might not stop there. The country’s current president could end up holding even more terms in office thanks to a rule change in 2018.
That change abolished the two-term limit on Presidents in China. And investors will note that President Xi was leading the company when that change went into effect. He’s also packed the Communist Party of China with members loyal to him.
All of this news has LKNCY stock seeing heavy trading today. As of this writing, over 7 million shares have changed hands. That’s quite the increase from its daily average trading volume of about 1.8 million shares.
With that heavy trading comes shares of LKNCY stock falling 18.7% as of Monday afternoon.
There’s more Chinese stock market news worth diving into below!
We’ve got all of the latest coverage that traders need to know about on Monday! That includes what’s going on with shares of Alibaba (NYSE:BABA), Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV) stocks today. You can find more on these matters at the following links!
More Monday China Stock Market News
- What to Know as Alibaba (BABA) Stock Hits a 6-Year Low
- Why Is Li Auto (LI) Stock Down 19% Today?
- Why Is Xpeng (XPEV) Stock Down 13% Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
