U.S.-listed Chinese EV makers Nio Inc LI, XPeng Inc XPEV, and Li Auto LI plunged in Hong Kong on Friday after the stocks of these Tesla Inc TSLA rivals saw their previous gains evaporate in the U.S. overnight.
In the U.S., investors' rising concerns about a slowing economy and interest rate hike by the Fed sent the Dow Jones Industrial Average to its worst day since 2020 – and the Nasdaq Golden Dragon China Index also declined nearly 8%.
The Macro Factors: Hong Kong's benchmark Hang Seng Index tumbled 3.27%, led by a major slump in index heavyweights amid fears of Beijing's "zero-COVID" policies disrupting the economy and the administration's lack of concrete measures to support the sector.
Top Chinese leaders warned against questioning Xi Jinping's strategy to stamp out the coronavirus, despite the sharp contraction in the country's economy as businesses came to a grinding halt, Bloomberg reported.
The sell-off in Hong Kong was a sharp reversal of fortunes after Hang Seng posted large gains on Thursday.
Elsewhere, Australia's ASX 200 shed 2.24%, and the SGXNifty in Singapore was down 2.14%, while the Shanghai Composite slid 1.58%.
Company In News: The U.S. Securities and Exchange Commission on Thursday added Nio to its potential list of Chinese companies on the verge of delisting in the U.S. amid the US-China audit stand-off.
NIO also announced a proposed secondary listing of its Class A ordinary shares on Singapore Exchange amid the uncertain environment in the U.S. for the Chinese giants.
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