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Ecommerce firms Alibaba (NYSE:BABA) and JD (NASDAQ:JD).com and internet giant Baidu (NASDAQ:BIDU) dropped between 11% and 16%.
The iShares MSCI China ETF skid 8.6%, tracking a sharp fall in Hong Kong shares, led by losses in technology and property sector.
Xi secured a precedent-breaking third leadership term on Sunday and introduced the new Politburo Standing Committee stacked with loyalists.
Music streaming co Tencent Music, e-commerce platform Pinduoduo (NASDAQ:PDD) and mobile game publisher Bilibili (NASDAQ:BILI) shed between 10% and 15%.
Education companies New Oriental Education & Technology Group and Gaotu Techedu dropped about 12% each, while electric vehicle firms Nio (NYSE:NIO) Inc, Xpeng (NYSE:XPEV) and Li Auto fell between 10% and 13%.
The changes in leadership suggest little chances of fresh stimulus or changes in COVID policy in the months ahead, strategists at TD Securities wrote in a note.
“While there were no new announcements on the policy front, the departure of perceived pro-stimulus officials and reformers from the Politburo Standing Committee and replacement with allies of Xi, suggests that ‘Common Prosperity’ will be the overriding push of officials,” they said.
