Baidu Shares Fall on Regulation Fears and Novavax Shares Plunge Amid Vaccine Delays
On Thursday, shares of Baidu plunged, closing down 14.47%.
Shares of the Chinese tech company fell as investors feared the tech giant might face heightened scrutiny from Chinese regulators.
Investors have been wary of Chinese technology stocks lately. The Securities and Exchange Commission (SEC) of the United States has threatened to delist international firms from American exchanges if they do not follow US auditing procedures.
The rising tension between the United States and China has alarmed investors, and any discussion of stock delisting is enough to make investors nervous. The fact that the Chinese government is starting to extend its control of major technology firms makes matters worse for Baidu’s stock.
Shares of Baidu are down over 30% in the past month.
On Thursday, shares of Novavax fell, closing down 10.99%.
Shares of the American vaccine developer tanked on reports that their COVID-19 vaccines were facing delays in Europe.
Novavax is having difficulty sourcing the raw materials it needs to manufacture its COVID-19 vaccine, according to reports. According to Reuters, supply negotiations in Europe have come to a halt.
The European Union agreed to purchase a minimum of 100 million doses of the Novavax vaccine earlier this year, with the option to buy another 100 million doses. Currently, the vaccine isn’t authorized for distribution anywhere.
Shares of Novavax are up over 55% this year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.