Goldman Sachs Group Inc. sold $ 10.5 billion worth of shares in block trading on Friday, part of an extraordinary selloff that wiped out $ 35 billion of the values of leading stocks ranging from Chinese tech giants to conglomerates of American media.
The Wall Street bank sold shares of Baidu Inc., Tencent Music Entertainment Group and Vipshop Holdings Ltd. worth $ 6.6 billion before the market opened in the US, according to an email seen to clients. by Bloomberg News.
That move was followed by the sale of $ 3.9 billion of shares in ViacomCBS Inc., Discovery Inc., Farfetch Ltd., iQiyi Inc. and GSX Techedu Inc., according to the email.
Morgan Stanley was said to be managing more of the unregistered share offerings, according to people familiar with the matter, on behalf of one or more undisclosed shareholders. Some of the operations exceeded $ 1 billion in sole proprietorships, calculations based on Bloomberg data Show.
Maeve DuVally, a spokeswoman for Goldman Sachs, declined to comment. A Morgan Stanley spokesperson declined to comment.
The sell-off sparked price swings for all stocks involved in high-volume trading, while also shaking up some of their industry counterparts. It also stimulated speculation among some operators of forced sales by the liquidation of a fund.
Several major investment banks linked to hedge fund Tiger Cub Archegos Capital Management LLC liquidated their holdings, contributing to the drop in share prices of ViacomCBS and Discovery, IPO Edge. reported, citing people he did not identify.
In block transactions, large volumes of securities are privately traded between the parties, generally outside the open market.
Friday’s sell-off dragged companies like Alibaba Group Holding Ltd. and NetEase Inc. lower.The pairs later rallied after traders said news of the deals lessened fears that broader trading was unfolding. across the industry.
That late rally propelled an index of companies engaged in internet-related business in China and the US higher, and the move halted a three-day selloff while still posting a drop of around 6.5% for the week.
Chinese stocks have been under pressure after a warning the Securities and Exchange Commission that it is taking steps to force accounting firms to allow US regulators to review financial audits of foreign companies; the penalty for non-compliance is the expulsion of the bags. On top of that, Bloomberg News reported that the Chinese government has proposed forming a joint venture with local tech giants that would oversee the lucrative data they collect.
Read more: ViacomCBS, Discovery Plunge on New Downgrade, Block Trades