China’s Hang Seng index closed at its lowest level in a year, and several U.S.-listed Chinese companies are down today. Among the names in the latter category is electric vehicle (EV) maker Nio (NASDAQ:NIO), as NIO stock is retreating 2.3% after sinking 2.77% yesterday.

Yesterday’s sharp retreat of the Chinese stock market and the problems of China’s real estate sector are apparently having a significant, negative impact on many Chinese stocks traded in America, including Nio.

The Issues Facing China’s Real Estate Market

China’s Hang Seng Index fell 2.7% yesterday and sank another 3% today amid worries about higher U.S. interest rates, the issues facing the Chinese real estate sector, and concerns about the Chinese economy as a whole.

Higher U.S. rates raise the interest on bonds issued by Chinese companies, and elevated rates also damage the Chinese real estate space. Moreover, there are major concerns about the debt levels of two of the country’s most prominent real estate firms: Evergrande and Country Garden (OTCMKTS:CTRYY). Also noteworthy is that Evergrande’s founder was arrested on “undisclosed” charges, according to The South China Morning Post.

Meanwhile, Beijing’s efforts to stimulate the Chinese economy are being widely seen as ineffectual.

NIO Stock: Nio’s Deliveries Fell in September Versus August

Nio’s deliveries dropped 19% in September versus August, coming in at 15,641. However, its deliveries did jump 43.8% last month versus the same period a year earlier.

But the deliveries of two other Chinese EV startups — Li Auto (NASDAQ:LI) and Xpeng (NASDAQ:XPEV) — climbed meaningfully in September, compared with the previous month.

Heading into today, NIO stock had fallen 19% in the last month, and it had dropped 10% so far in 2023.

On the date of publication, Larry Ramer was long XPEV. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.