China's Stocks in U.S. See No Relief in September

(Bloomberg) — Even after Chinese stocks in the U.S. are set to register their worst month in more than a year, investors see little relief ahead as China’s “zero Covid” strategy remains firmly in place and a global equity rout mounts.

The Nasdaq Golden Dragon China Index has tumbled 18% in September, poised for its biggest monthly decline since July 2021. Heavyweight internet stocks including Alibaba Group Holding Ltd., JD.com Inc. and Baidu Inc. have all lost more than 16% during the month.

Bets that easing financial conditions will aid Chinese stocks to outshine the world quickly unraveled in recent months, with China’s sluggish economy still bogged down by virus control measures, a struggling housing market and weakening demand for exports. Geopolitical tensions over Taiwan and reduced appetite toward global risk assets didn’t help.