Alibaba, XPeng Slip As Hang Seng Breaches Key Support Level: American Firms' China Optimism Hits Record Low

The Hang Seng Index opened 1.5% lower on Tuesday, as investors factored in the possibility of an aggressive rate hike in the U.S. when the Federal Open Market Committee meets in September. Market participants also weighed the results of a survey that showed American firms’ optimism about China hit a record low.

Hong Kong Stocks Today
Stock Movement
Alibaba Group Holding Ltd. BABA  -0.63% Inc JD -0.16%
Baidu Inc BIDU -1.78%
Tencent Holdings Ltd. TCEHY           -0.74%
Meituan MPNGF -0.91%
Nio Inc NIO 0.46%
XPeng Inc XPEV -1.16%
Li Auto Inc LI -2.05%

Key Support Level Breached: The Hang Seng index has broken a key short-term support level of 19,898 on Tuesday morning. The next support level lies at 19,195.

Macro News: According to a new survey from a U.S. business group, American firms’ optimism about China has declined to a record low, with President Xi Jinping’s "Covid Zero" policy forcing more than half of companies to delay or cancel investment, reported Bloomberg. Only 51% of respondents showed some degree of optimism about their five-year business outlook in China, down from 69% last year.

Also Read: Warren Buffett-backed BYD's H1 Profit More Than Triples Despite Inflation Pressures

In a rare move, China has sent high-ranking officials, including cabinet ministers, across the nation to demand local governments do more to stabilize growth, the South China Morning Post reported.

Company NewsWarren Buffett-backed BYD’s BYDDF first half gross profits more than tripled to 3.595 billion yuan.

Tencent-backed Tuhu Car shifted its listing plan from the U.S. to Hong Kong while aiming to raise close to $400 million, reported the South China Morning Post, citing sources.

Top Gainers and LosersTechtronic Industries Company Ltd and ENN Energy Holdings Ltd led gains among the top 30 Hang Seng constituents, rising over 2%. China Mengniu Dairy Company Ltd and Alibaba Health Information Technology Ltd were the top losers, down over 1.5%.

Global News: U.S. futures traded in the green on Tuesday morning Asia session. The Dow Jones futures were up 0.17%, while the Nasdaq futures gained 0.25%. The S&P 500 futures were up 0.18%.

Elsewhere in Asia, Australia’s ASX 200 gained 0.46%. Japan’s Nikkei 225 was up 0.87%, while China’s Shanghai Composite index was trading flat. South Korea’s Kospi gained 0.49%.

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