What happened
Shares of Baozun (BZUN 6.18%) are losing ground in today's trading. The China-based e-commerce company's share price was down roughly 9.3% as of 3 p.m. ET Thursday.
Chinese stocks have seen volatile trading this week. After starting the week with a day of huge sell-offs, companies based out of the region generally enjoyed strong rebound momentum, but they're seeing a pullback in today's daily session.
Image source: Getty Images.
So what
Chinese stocks started the week off with a round of intense sell-offs that marked the biggest pullback for the country's stock market since 2008. Concerns about the potential for sanctions from the U.S. if China opted to give military or financial support to Russia to aid its invasion of Ukraine, the possibility of delistings from U.S.-based exchanges, and a rise in coronavirus omicron cases creating new supply chain challenges all contributed to a dramatic rise in bearish sentiment.
After the dramatic sell-off, Chinese stocks posted a strong recovery in Tuesday and Wednesday's trading. There doesn't appear to be any business-specific news driving Baozun's share price pullback today, and it looks like the stock's sell-off is primarily a result of investors taking profits on explosive gains and rebound momentum moderating.
Now what
After volatile swings, Baozun stock is now down roughly 10% across this week's trading. The company's share has slipped 36.5% in March, 51% across 2022's trading, and 85% over the last year.
Baozun now has a market capitalization of roughly $476 million and is valued at just a 29% of this year's expected sales and 8.3 times this year's expected earnings. The company has generally put up a solid performance over the last year despite facing challenging comparisons to periods when it saw strong pandemic-related tailwinds, but investors are concerned about the company's rising costs and reliance on its partnership with Alibaba Group Holding.
