Pinduoduo $PDD stock fell -4.4% on October 14, 2022, as Biden’s microchip ban weighed on the company.
Dark Pool Trades In Pinduoduo $PDD Stock
Dark pool trades occurred in Pinduoduo stock between October 12th – 14th, 2022. We think the dark pool trades were sell orders because of how Pinduoduo $PDD stock fell following the trades hitting the tape.
A narrative emerges that Biden’s microchip ban caused institutional investors to reduce long positions in $PDD stock.
Pinduoduo $PDD stock and the microchip ban
Shares of many Chinese stocks that trade on U.S. stock exchanges, like Pinduoduo $PDD struggled last week after the Biden Administration announced stricter microchip exporting rules.
The U.S. Department of Commerce’s Bureau of Industry and Security imposed new export controls requiring U.S. companies seeking to sell certain semiconductor chips or other hardware to China to apply for a license. Foreign companies that use tools made in the U.S. to manufacture certain chips would also have to apply for licenses.
The U.S. Securities and Exchange Commission (SEC) continued to name Chinese stocks trading on U.S. exchanges that could eventually get delisted under the Holding Foreign Companies Accountable Act (HFCAA). The law states that if U.S. financial regulators do not properly audit foreign companies for three straight years, they can no longer trade on U.S. stock exchanges.
Pinduoduo launches U.S. e-commerce website Temu, CNBC reports
On September 2, 2022, Pinduoduo (PDD) has introduced a U.S. e-commerce website called Temu, as the Chinese company expands overseas and looks to challenge U.S. giant Amazon (AMZN), CNBC’s Arjun Kharpal reports, citing the website. The site lists items across many categories, including clothing, jewelry, pet supplies and home and garden and marks Pinduoduo’s biggest overseas effort as the domestic Chinese economy faces a number of hurdles. Source: https://www.cnbc.com/2022/09/02/chinas-e-commerce-giant-pinduoduo-launches-us-shopping-site-temu.html
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Pinduoduo $PDD Stock Technical Analysis
Pinduoduo $PDD stock is in a technical weak uptrend rating. The stock is testing key support at $52.90. A break below the $52.90 support would likely result in a test of the next support level, at $45.60.