Overnight, PDD plummeted by 8%, with a decline of nearly 10% over the past three trading days!As a result, PDD, which surpassed BABA-SWR and became the largest Chinese concept stock in terms of market value in late November last year, has once again been surpassed by BABA-SWR. BABA-SWR's closing market value reached USD 184.4 billion, while PDD's market value was USD 172.9 billion.<img src="https://pub.pbkrs.com/cms/2024/0/gAZQrMaXHsbr13B6AdgaMMsSvg3czPaQ.jpg?x-oss-process=style/lg" alt="" original-src="https://pub.pbkrs.com/cms/2024/0/gAZQrMaXHsbr13B6AdgaMMsSvg3czPaQ.jpg"/>Why did PDD suddenly plummet? It is related to market expectations triggered by a piece of news!During yesterday's regular press conference of the Chinese Ministry of Foreign Affairs, a Bloomberg reporter asked, &#34;According to reports, former US President Trump discussed the possibility of imposing a unified 60% tariff on all Chinese imports with his advisors. What is China's comment on this?&#34;Chinese Foreign Ministry spokesperson Wang Wenbin responded at the time, &#34;We do not comment on unconfirmed news.&#34;However, according to DoNews analysis, the news about Trump still raised concerns in the market about the development of PDD's subsidiary, Temu.Dolphin Research also analyzed that the decline in Chinese concept assets is based on the current trend of the US election. With Trump gaining momentum, the market is worried about the escalation of trade conflicts, and PDD's sharp decline is the most prominent manifestation of this issue.

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After a 10% decline in three days, Alibaba's market value in the US stock market has surpassed that of Pinduoduo! The reason for the sharp decline is that the market has started to have concerns about the development of Pinduoduo's subsidiary, Temu!

Understanding the Market | Why did Pinduoduo drop 8% overnight?