Alibaba, Nio Slide As China Wrestles COVID-19 Resurgence: Hong Kong Stocks Today

Zinger Key Points
  • Hang Seng Index trades 1.19% lower
  • Chinese cities are adopting fresh COVID-19 curbs to rein in new infections
  • Nio forming a board-level committee to look into short-seller allegations

Shares of U.S.-listed Chinese companies traded mostly lower in Hong Kong on Tuesday, with major tech stocks like Alibaba Group Holdings BABA, Tencent Holdings TCEHY, Baidu Inc BIDU, and Inc JD deep in the red.

In the electric vehicle segment, Xpeng Inc XPEV and Nio Inc NIO cracked at least 2% during the early trading hours. At the same time, Li Auto Inc LI bucked the trend and traded marginally higher after paring early losses.

Here’s How Nio, Xpeng, Li Auto Are Faring In Hong Kong
Stocks Movement (+/-)
Alibaba -4.74%
Tencent -1.11%
Baidu -1.31% -1.62%
Nio -3.97%
Xpeng -2.12%
Li Auto 0.41%

Shares of these Chinese companies ended lower on U.S. bourses on Monday.

Global Markets Recap: At press time, the benchmark Hang Seng Index fell 1.19% to its lowest level in three weeks.

In the U.S., the Dow Jones Industrial Average ended 0.52% lower as investors prepared for the start of the second-quarter earnings season.

Elsewhere, Shanghai's SSE Composite Index was down 0.46%, Japan's Nikkei 225 shed 1.69%, while Singapore's SGX Nifty gained 0.21%.

Macro Factors: After finding a highly transmissible Omicron coronavirus subvariant in Shanghai, the city is bracing for another mass testing effort. The world’s financial hub reported 59 new infections on Monday, marking a sharp rise from single digits a week ago.

Other Chinese cities are also adopting fresh COVID-19 curbs, from business halts to lockdowns, to rein in new infections, Reuters reported. The tough curbs by local governments are being imposed in line with President Xi Jinping’s "dynamic zero-COVID" policy.

Company In News: Tencent’s new mobile game “Dark Zone Breakout” will officially launch on July 13. The game has been tested several times in the past year and has so far received positive feedback from players, according to Pandaily.

Ieq Capital LLC increased its stake in by 7.0% in the first quarter, according to the Securities & Exchange Commission filing, Defense World reported.

EV maker Nio on Monday announced that it was forming a board-level committee to look into claims by the short-selling firm. Grizzly Research, which alleged Nio of inflating its revenue and profitability.

Photo by ffikretow on Shutterstock

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