Why EV Shares Nio, Xpeng and Li Are Falling in Hong Kong

Shares of Tesla Inc. TSLA rivals and US-listed Chinese companies Xpeng Inc NIO, Li Auto LI and NIO Inc XPEV took a heavy blow in Hong Kong on Tuesday as the market opened after a long weekend.

How EV stocks are doing today in Hong Kong Stock movement (+/-) NIO -8.61% Xpeng -11.85% LI Auto -6.35%

Shares of these Chinese automakers ended on a similar note in US markets.

Global Markets Recap: The Hang Seng overall benchmark index plunged 2.58%, nearing its two-month low. This came amid the deteriorating prospects of the Chinese economy and steep losses in the US stock market that saw the tech-heavy Nasdaq Composite fall more than 5%.

Elsewhere, the Australian ASX 200 fell 1.36% and Japan’s Nikkei 225 0.93%, while Shanghai’s SSE Composite Index wiped out early losses to gain 0.43%.

The Macro Factors: Data released over the weekend showed the unemployment rate in China rose to 5.8% in March, with Chinese Prime Minister Li Keqiang calling it a “complex and serious” situation as the country struggles to rebound of COVID-19 cases.

Data also showed that Chinese exports grew 3.9% in April compared to a year earlier – the slowest in 2 years, as it likely took a hit from President Xi Jinping’s “dynamic zero-COVID” policy.

Company in the news: On Friday, US regulatory officials arrived in Beijing to settle a long-running dispute over control compliance by US-listed Chinese companies. JD.com, Nio, XPeng and Baidu are among the 80 companies allegedly affected by the regulatory crackdown.

Li Auto will publish its quarterly results on Tuesday. Analysts estimate it will report a loss per share of 10 cents.

This post Why EV Shares Nio, Xpeng and Li Are Falling in Hong Kong was original published at “https://www.benzinga.com/markets/asia/22/05/27098713/why-nio-and-other-ev-peers-are-dragging-the-hong-kong-market-lower-today”

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