Shares of major U.S.-listed Chinese companies were trading lower for a second straight session in Hong Kong on Wednesday, as major tech stocks like Alibaba Group Holdings BABA, Tencent Holdings TCEHY, Baidu Inc BIDU, and JD.com Inc JD slipped into the red.
In the electric vehicle segment, Nio Inc NIO led losses with a near 8% fall, while Xpeng Inc XPEV and Li Auto Inc LI cracked at least 4% each.
Shares of these companies ended lower on U.S. bourses as well on Tuesday.
Global Markets Recap: At press time, the benchmark Hang Seng Index was trading 1.10% lower amid weak global market cues.
In the U.S., for the second day in a row, the Dow Jones Industrial Average failed to hold on to opening gains, ending 1.56% lower.
Elsewhere, Shanghai's SSE Composite Index was muted, while Japan's Nikkei 225 shed 1.07% and Singapore's SGX Nifty slipped 0.21%.
Macro Factors: U.S. consumer confidence fell sharply in June amid high inflation, spurring fears that economic growth would weaken significantly in the second half of 2022.
That overshadowed China’s relaxation of COVID-19 quarantine rules aimed at resuscitating the world's second-largest economy.
Company In News: Short-seller Grizzly Research on Wednesday published a bearish report on Nio, alleging the EV maker was inflating its revenue and profitability. Nio told CnEVPost that the report was full of inaccuracies and misinterpretations.
Tencent’s gaming chief Steven Ma disclosed that the company had set up an XR business line to combine hardware and software.
Alibaba is shutting down its R&D center in Israel and laying off around 50 local employees.
Li Auto announced an “at-the-market" offering worth $2 billion. The company plans to use the funds to develop new autonomous driving technologies, to create new models, and for general corporate purposes.
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