Nio, EV Peers Surge, Alibaba Edges Higher As Hang Seng Takes Strong Cues From Wall Street

Nio, EV Peers Surge, Alibaba Edges Higher As Hang Seng Takes Strong Cues From Wall Street

U.S.-listed Chinese electric-vehicle stocks surged in early Hong Kong trading on Friday, with Nio Inc NIO and Li Auto Inc LI adding more than 4%, following a firmer close on Wall Street overnight for a third straight session.

The Hang Seng Index rose 0.8% at the open after having ended in the red on Thursday, dragged by financials and property stocks.

Stock                                                                                                      Movement  
NIO                                                                                                           4.45%  
Li Auto                                                                                                      4.81%  
XPeng                                                                                                       2.44%  
Baidu                                                                                                        2.88%  
Alibaba                                                                                                     1.6%  
JD.com                                                                                                     1.37%  
Tencent Holdings                                                                                       1.44%  

EVs Lead Rally: Li Auto led the surge, gaining more than 4.7% in opening trade, Nio was up over 4%, while Tesla Inc TSLA rival XPeng Inc XPEV rose 2.44% at press time.

Tech Rises And Rises: Shares of Baidu Inc BIDU rose over 2%, while Alibaba Group Holding Ltd. BABA added 1.6%. Tencent Holdings Ltd. TCEHY shares were up 1.4%, while shopping platform Meituan MPNGF rose 1.89%. E-commerce player JD.com Inc JD gained 1.3%.

Also Read: Why Are Shares Of Tesla Up Today: Shares Rise Following A Strong Q2 Earnings Report

Macro News: Hong Kong is set to witness its first prime rate hike since 2018 following aggressive policy by the U.S. Federal Reserve, according to a Bloomberg survey. 

China’s banking regulator has nudged small banks to dispose of their non-performing assets. The China Banking and Insurance Regulatory Commission (CBIRC) spokesperson Qi Xiang stated in a press conference that small and medium-sized banks have disposed of 594.5 billion yuan ($87.9 billion) worth of bad loans in the first six months, reports Caixin Global.

Company News: Nio is set to deliver its 150 kWh solid-state batteries in the fourth quarter, Pandaily reported. The firm delivered 12,961 cars in June 2022, witnessing a 60.3% year-on-year increase.

Baidu unveiled its all-electric robotaxi and plans to deploy the vehicle at scale across China, TechCrunch reported. It has started charging fares in Beijing for its driverless rides, seen as a pre-cursor to commercializing its robotaxi business.

Global Markets: U.S. markets traded in the green for a third straight session on Thursday, led by a rally in tech stocks, with the Nasdaq surging 1.36%. The Dow Jones Industrial Average closed 0.51% higher, while the S&P 500 rose 0.99%.

Tesla Inc TSLA shares jumped close to 10% on better-than-expected earnings.

Elsewhere in Asia, Japan’s Nikkei 225 traded marginally higher at 0.07% while the South Korean Kospi fell 0.57%. China’s Shanghai Composite traded flat while Australia’s ASX 200 was down 0.08% in opening trade.

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