Why Alibaba, Xpeng And Other Tech Stocks Are Muted In Hong Kong Today

Why Alibaba, Xpeng And Other Tech Stocks Are Muted In Hong Kong Today

Shares of U.S.-listed Chinese tech companies were mixed in Hong Kong on Thursday, even as the benchmark Hang Seng Index opened higher on news that China may soften its zero-tolerance approach to curbing COVID-19 outbreaks.

 

Stock Movement (+/-)
JD.com Inc. JD +0.4%
Baidu Inc. BIDU +0.1%
Li Auto Inc. LI -4.6%
Xpeng Inc. XPEV -2.4%
Tencent Holdings Limited TCEHY -1.4%
Alibaba Group Holding Limited BABA -0.1%

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The Macro Factors: The Hang Seng Index opened higher and was up 0.4% at press time. The index closed 1.8% lower on Wednesday.

The Wall Street Journal on Wednesday reported that China is actively exploring ways to implement experimental opening measures in select cities as early as this summer.

Meanwhile, a private survey released on Thursday showed that the services sector in China expanded in February, albeit at the slowest rate in six months.

The latest survey from Caixin showed a services PMI score of 50.2 in February, compared to January’s reading of 51.4. According to panel members, the ongoing pandemic and measures to stem the spread of the virus dampened business activity.

Companies In The News: China’s top banking regulator said that while business overhauls of online platforms run by major Chinese companies — including Alibaba, Tencent and Baidu — have gone well, more work is needed, it was reported by the South China Morning Post.

Shares of Chinese companies, including electric vehicle maker Nio Inc. NIO, closed mostly lower in U.S. trading on Wednesday even as the major averages ended notably higher.

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