Cathie Wood -led Ark Investment Management trimmed exposure to Chinese companies as talks to improve the U.S.-China relationship continued to be in a stalemate. What Happened: On Monday, Ark Fintech Innovation ETF (NYSE: ARKF ) and Ark Space Exploration & Innovation ETF (BATS: ARKX ) sold some shares in Alibaba Group Holding Ltd (NYSE: BABA ).
While ARKF sold 99,797 shares valued at approximately $19.14 million, ARKX sold 7,970 shares worth almost $1.53 million. Alibaba Shares closed 7.15% lower on Monday at $191.76 in the regular session.
ARKF, ARKX, and Ark Next Generation Internet ETF (NYSE: ARKW) also shed JD.com, Inc (NASDAQ: JD) shares.
ARKF sold 318,465 shares of JD.com valued at $21.04 million, while ARKW and ARKX sold 651,175 and 750 shares worth $43.03 million and $49,560, respectively. On Monday, JD.com shares closed 8.59% lower at $66.08 in the regular session.
Ark Invest also sold shares of Pinduoduo Inc (NASDAQ: Original Postdd#NASDAQ" target="_blank" rel="noreferrer noopener">PDD) on Monday. ARKF sold 116,153 shares of the Chinese retailer worth nearly $10.30 million. In regular trading, Pinduoduo shares closed 8.84% lower at $88.71 on Monday.
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Why It Matters: Chinese stocks including those of the Jack Ma-led Alibaba traded lower after a meeting between U.S. and Chinese officials failed to make major headways.
Adding to the pressure on Chinese stocks were regulations introduced by the Chinese government related to for-profit education companies, which investors fear could affect other industries.
Ark Invest has continued to divest from China and earlier in the month sold shares in Tencent Holdings (OTC: TCEHY) and JD.com both rivals of Alibaba
3 million.