Alibaba, Nio Shares Mixed: Hang Seng Index Today


Shares of US-listed Chinese companies were largely lower in Hong Kong on Thursday morning, with technology stocks a major drag.

Alibaba Group Holding BABA, JD.com Inc. JD, Baidu Inc BIDU and Tencent Holdings TCEHY traded deep in the red, as did EV makers Li Auto Inc LI and Xpeng Inc XPEV, although Nio Inc NIO went against the trend.

How US-listed Chinese stocks fare today in Hong Kong Stock movement (+/-) Alibaba -2.96% JD.com -0.80% Baidu -0.50% Tencent -1.22% Nio 0.65% Li Auto -0.69% Xpeng -2.58%

Shares of these Chinese companies ended up mixed overnight on US exchanges.

Global Markets Recap: At the time of writing, the benchmark Hang Seng Index fell close to 2% on weak global signals.

The Australian ASX 200, Shanghai’s SSE Composite Index and Japan’s Nikkei 225 also fell.

Macro Factors: Bloomberg reported that Hong Kong is reviving its toughest COVID-Zero measures as the virus appears to return with new ommicron sub-variants. Hong Kong is forcing patients with even mild infections and their close contacts into centralized quarantine to tame any spread.

According to SCMP, top investment bank China International Capital Corporation and Citic Securities have said weaker consumer spending amid the impact of city lockdowns poses the biggest risk to the revenues of major tech companies this year.

Oil prices were lower during the early Asian hours, with the international benchmark Brent oil futures falling 2.24% to $113.69 a barrel after FT reported that Saudi Arabia is poised to pump more crude if the Russian production is falling.

Company in the news: BofA Securities analyst Eddie Leung maintained a ‘buy’ recommendation for JD.com while the price target remained unchanged at $76.

Tencent stopped guaranteeing a pay rise on promotion amid more extensive cost savings. This came after profits of China’s most valuable company halved year-over-year in Q1 and revenues stagnated.

EV makers Nio, XPeng and Li Auto look set to bounce back in May as China begins to allow limited operations. For May, Nio’s deliveries were only 4.7% higher than a year earlier, while XPeng and Li Auto reported 78% and 165.9% annual increases, respectively.


This post Alibaba, Nio Shares Mixed: Hang Seng Index Today was original published at “https://www.benzinga.com/markets/asia/22/06/27514998/why-alibaba-nio-chinese-peers-are-trading-mostly-lower-in-hong-kong-today”

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