Stock movements on an electronic display in New York, USA
Goldman Sachs Group Inc. on Friday it sold $ 10.5 billion worth of shares on Friday, part of an extraordinary series of sales that wiped out $ 35 billion in belligerent shares, from Chinese tech giants to US media conglomerates.
Wall Street Bank sold $ 6.6 billion worth of shares of Baidu Inc., Tencent Music Entertainment Group and Vipshop Holdings Ltd. before opening in the US market, according to an email to customers seen by Bloomberg News.
This move was followed by the sale of $ 3.9 billion in shares to ViacomCBS Inc., Discovery Inc., Farfetch Ltd., iQiyi Inc. and GSX Techedu Inc., it was said in the email.
According to those familiar with the matter, several of the unregistered share offers were administered by Morgan Stanley on behalf of one or more undisclosed shareholders. Some of the transactions exceeded $ 1 billion in individual companies, calculations based on Date Bloomberg show.
Maeve DuVally, a spokeswoman for Goldman Sachs, declined to comment. A Morgan Stanley spokesman declined to comment.
Price balances
The liquidation triggered price fluctuations for each stock involved in high-volume transactions, while shaking some of their industry counterparts. It also stimulated speculation by some traders about the forced sale by a liquidated fund.
Several major investment banks linked to the Tiger Cub Archegos Capital Management LLC hedge fund liquidated their holdings, contributing to lower stock prices ViacomCBS and Discovery, IPO Edge he reported, citing people he did not identify.
In block transactions, large volumes of securities are traded privately between the parties, usually outside the open market.
Friday’s sell-off fell, including Alibaba Group Holding Ltd. and NetEase Inc. Later, colleagues recovered after traders said bids eased fears that wider trade was taking place across the sector.
That late return led to an increase in an index of companies engaged in internet-related businesses in China and the US, the measure stopping sales for three days, while recording another slip of about 6.5% for the week.
Chinese stocks were under pressure after a The Securities and Exchange Commission warns that it is taking steps to force accounting firms to allow U.S. regulators to review the financial audits of overseas companies – the penalty for non-compliance being removal from the stock market. In addition, Bloomberg News reported that the Chinese government has proposed forming a joint venture with local technology giants to monitor the lucrative data it collects.
Read more: ViacomCBS, Discovery Plunge on New Downgrade, Block Trades