Movements of the stock market on electronic screen in New York, USA
Goldman Sachs Group Inc. liquidated $ 10.5 billion of shares in bulk transactions on Friday, part of an extraordinary sales wave that wiped out $ 35 billion of benchmark stock values ranging from Chinese tech giants to US media conglomerates.
The Wall Street bank sold $ 6.6 billion in shares of Baidu Inc., Tencent Music Entertainment Group and Vipshop Holdings Ltd. before the market opened in the United States, according to an email sent to customers by Bloomberg News .
That move was followed by the sale of $ 3.9 billion in shares of ViacomCBS Inc., Discovery Inc., Farfetch Ltd., iQiyi Inc. and GSX Techedu Inc., the email said.
More of the unlisted share offerings would be managed by Morgan Stanley, according to people familiar with the matter, on behalf of one or more undisclosed shareholders. Some of the negotiations exceeded $ 1 billion in individual companies, calculations based on Bloomberg Contact info Show.
Maeve DuVally, a spokesman for Goldman Sachs, declined to comment. A Morgan Stanley spokesman declined to comment.
Price variations
The liquidation triggered price fluctuations for all the shares involved in high-volume transactions, while also shaking some of its sector counterparts. It also spurred speculation among some forced sellers of a liquidating fund.
Several large investment banks linked to the Tiger Cub Archegos Capital Management LLC hedge fund liquidated holdings, contributing to the drop in ViacomCBS and Discovery, IPO Edge’s share prices. reported, citing people he didn’t identify.
In block trading, large volumes of securities are traded privately between the parties, usually outside the open market.
Friday’s liquidation dragged companies like Alibaba Group Holding Ltd. and NetEase Inc. down. The pairs recovered after traders said the offers eased fears that broader trade was taking place across the sector.
This late recovery pushed up an index of companies involved in Internet-related businesses in China and the United States, with the move interrupting a three-day settlement, although still marking a fall of about 6.5% for the week.
Chinese stocks are 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 the financial audits of foreign companies – the penalty for non-compliance is the expulsion of the stock exchanges. In addition, Bloomberg News reported that the Chinese government has proposed to form a joint venture with local technology giants that would oversee the lucrative data they collect.
Read more: ViacomCBS, Discovery Plunge on New Downgrade, Block Trades