Shares of Alibaba Group Holding Limited BABA, Baidu Inc.BIDU, JD.Com Inc.JD, Tencent Holdings Inc. TCEHY, Li Auto Inc. LI and Xpeng Inc. XPEV traded notably lower in Hong Kong on Monday.
What’s Moving:
Chinese e-commerce giant Alibaba’s shares traded 2.3% lower at HKD 156.20 in Hong Kong, while technology company Baidu’s shares have lost 2.8% to HKD 155.10 and e-commerce company JD.Com’s shares are down 1.9% to HKD 303.80.
Tech conglomerate Tencent Holdings Inc.’s TCEHY shares have fallen 1.3% to HKD 461.20.
Electric vehicle maker Xpeng’s shares have lost 4.9% to HKD 179.00 and peer Li Auto’s shares have fallen 3.0% to HKD 121.30.
Chinese EV startup Nio Inc. NIO is slated to report its financial results for the third quarter on Tuesday.
Hong Kong’s benchmark Hang Seng Index opened lower on Monday and was down 0.6% at the time of writing. The index closed 1.4% lower on Friday.
Why Is It Moving?
The Hang Seng Index is trading lower for a second straight day amid worries about an economic slowdown in China following the spread of the Delta variant of the coronavirus in many provinces.
Investors also turned cautious as they focused on a key meeting of the Chinese Community Party that commenced in Beijing on Monday.
A historical resolution that would extend Chinese President Xi Jinping’s rule to an unprecedented third term is expected to be passed at the meeting, Reuters reported. The political meeting is also expected to provide clues on China’s future economic policies.
In addition, the potential impact of real estate developer China Evergrande Group’s EGRNY debt crisis on the broader property sector weighed on sentiment.
A dollar bond from real estate firm Country Garden Holdings Co. fell two cents on Monday morning after tumbling a record 10.3 cents last week, as per a report by Bloomberg.
Shares of Chinese companies closed mixed in U.S. trading on Friday even as the major averages in the U.S. closed at new record highs.
Alibaba’s shares closed almost 3.7% lower, while Nio’s shares ended lower by 1.9%.
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Originally Posted on November 8, 2021 – Alibaba, JD And Nio Rivals Xpeng, Li Auto Slump In Hong Kong As Focus Shifts To Key Political Meeting In Beijing
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