Why Alibaba And Tesla Rivals Xpeng, Li Auto Are Crashing In Hong Kong Today

Why Alibaba And Tesla Rivals Xpeng, Li Auto Are Crashing In Hong Kong Today

Shares of U.S.-listed Chinese tech companies tumbled in Hong Kong on Friday, dragging the benchmark Hang Seng Index sharply lower, as investors assessed possible ripple effects from the escalating war between Russia and Ukraine.

 

Stock Movement (+/-)
Xpeng Inc. XPEV -12.4%
Li Auto Inc. LI -9.7%
JD.com Inc. JD -7.1%
Baidu Inc. BIDU -5.8%
Alibaba Group Holding Limited BABA -4.9%
Tencent Holdings Limited TCEHY -3.7%

See Also: How To Buy Alibaba (BABA) Stock

The Macro Factors: The Hang Seng Index opened lower and was down 2.5% at press time, as Russia's military actions against Ukraine intensified.

Risk sentiment took a beating following news that the Zaporizhzhia nuclear power plant in Ukraine — Europe’s largest caught fire after it was attacked by Russian troops. However, Ukrainian authorities later said the nuclear power plant had been secured.

Companies In The News: Tencent will reduce transaction fees by 10% for small and medium-sized merchants using its WeChat payments system, it was reported on Wednesday, citing Reuters. Alibaba and Chinese food delivery firm Meituan MPNGY have already made similar moves.

Chinese electric vehicle maker Nio Inc. NIO — which recently received approval for a secondary listing in Hong Kong — has raised 1.03 billion yuan ($163 million) through a debt offering in China, it was reported, citing CnEVPost.

Shares of Chinese companies closed sharply lower in U.S. trading on Thursday after the major indexes ended in the red.

Read Next: Video Game World Reacts To Russia-Ukraine Conflict: EA Makes A Move, Playstation And Xbox Silent

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