Shares of U.S.-listed Chinese firms traded mixed in Hong Kong on Wednesday morning, with web search giant Baidu Inc BIDU and electric vehicle maker NIO Inc NIO among stocks that were in the green.
Among major tech names, Alibaba Group Holding BABA, JD.com Inc JD, and Tencent Holdings TCEHY slid, while Li Auto Inc LI and Xpeng Inc XPEV were under pressure in the EV sector.
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 Pandaily, Leading 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.
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