Alibaba Down Over 2%, Nio Jumps 7%: What’s Weighing On Hong Kong Stocks Today?

Benzinga

Contributor:
Benzinga
Visit: Benzinga

By:

Benzinga Staff Writer

ZINGER KEY POINTS

  • Hang Seng Index down about 0.78%
  • Chinese Vice Premier says government will support development of digital economy firms and their public listings
  • Alibaba and Tencent are expected to post lackluster quarterly results 

Shares of U.S.-listed Chinese firms traded mixed in Hong Kong on Wednesday morning, with web search giant Baidu Inc and electric vehicle maker NIO Inc among stocks that were in the green.

Among major tech names, Alibaba Group HoldingJD.com Inc, and Tencent Holdings slid, while Li Auto Inc and Xpeng Inc were under pressure in the EV sector.

How U.S.-listed Chinese Stocks Are Faring In Hong Kong Today

StocksMovement (+/-)
Baidu0.34%
Alibaba-2.65%
JD.com-3.45%
Tencent-2.61%
Li Auto-0.64%
Nio6.83%

Shares of these Chinese companies ended significantly higher in U.S. markets on Tuesday.

Global Markets Recap:

At press time, Hong Kong’s benchmark Hang Seng Index pared gains and was down about 0.78% amid negative sentiments from Chinese peers. Elsewhere, Australia’s ASX 200 gained over 0.95%, Japan’s Nikkei 225 was up 0.72%, while Shanghai’s SSE Composite Index lost 0.43%.

Macro Factors:

Chinese Vice Premier Liu He said the government would support the development of digital economy firms and their public listings, in a possible relief for Alibaba, Tencent, Baidu and other tech stocks reeling under regulatory pressure.

A massive government restructuring plan for Hong Kong’s Chief Executive-elect John Lee Ka-Chiu’s incoming administration is expected to cost taxpayers an extra HK$95 million (US$12.1 million) a year, three times the amount estimated by his predecessor, according to SCMP reports.

Company In News:

Jack Ma-backed Alibaba and Ant Financials sold their 43% stake in India’s Paytm E-Commerce for Rs. 42 crores (or roughly over $5.4 million). 

JD on Tuesday posted an 18% jump in first-quarter revenue to $37.8 billion, beating the average market estimate

Alibaba and Tencent, however, are expected to post lackluster quarterly results

Nio is set to debut with its secondary listing on the Singapore Stock Exchange on May 20. The stock listed in Singapore will be fully fungible with the ADSs on NYSE.

According to PandailyLeading Ideal HK Limited – an affiliate of Li Auto – has set up a wholly-owned subsidiary in the Sichuan province. The company deals with ​​the design and service of integrated circuit chips and making auto parts and accessories.

Originally Posted May 18, 2022 – Alibaba Down Over 2%, Nio Jumps 7%: What’s Weighing On Hong Kong Stocks Today?

Disclosure: Benzinga

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Disclosure: Interactive Brokers

Information posted on IBKR Traders’ Insight that is provided by third-parties and not by Interactive Brokers does NOT constitute a recommendation by Interactive Brokers that you should contract for the services of that third party. Third-party participants who contribute to IBKR Traders’ Insight are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.

This material is from Benzinga and is being posted with permission from Benzinga. The views expressed in this material are solely those of the author and/or Benzinga and IBKR is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

In accordance with EU regulation: The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.

Any trading symbols displayed are for illustrative purposes only and are not intended to portray recommendations.