Why did Pinduoduo shares drop 7%? Reports of more Covid lockdowns in China
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Pinduoduo (NASDAQ:PDD) shares fell more than 7% Wednesday as the provider of e-commerce services and platforms in China retreated amid reports of new lockdowns and efforts to stem a rise in new Covid cases in parts of the country.

China, which continues to implement a strict policy of zero new Covid cases, was said to be running massive new virus-testing operations around Shanghai, where Pinduoduo (PDD) is headquartered. CNN also reported that the city of Xian, and its 13 million people, had been partially locked down due to a rise in Covid cases involving an Omicron subvariant of the virus.
As Pinduoduo (PDD) fell, several other leading Chinese stocks also lost ground Wednesday, with Alibaba (BABA) slipping by almost 1%, Baidu (BIDU) giving up more than 3% and Weibo (WB) falling more than 4%.
Chinese online gaming company NetEase (NTES) ended the day down by more than 3% despite getting positive comments from Macquarie analyst Esme Pau, who started her coverage of NetEase (NTES) with an outperform rating and $129-a-share price target on the company's stock.