Alibaba, Baidu Slide Over 3% As Wall Street Horror Spreads To Hong Kong Stocks: Report Sparks Fears Of US-China Tensions Over Taiwan

Zinger Key Points
  • Shares of Alibaba, Baidu, JD.com fall over 3%
  • US reportedly considers sanctions against China to ward off any potential attack on Taiwan
  • Chinese Premier Li Keqiang calls for more policies to boost consumption in the economy
Alibaba, Baidu Slide Over 3% As Wall Street Horror Spreads To Hong Kong Stocks: Report Sparks Fears Of US-China Tensions Over Taiwan

Hong Kong shares plunged on Wednesday, taking cues from a heavy sell-off on Wall Street triggered by higher-than-expected U.S. inflation for August. Shares of Alibaba, Baidu, and JD.com fell over 3%, with the benchmark Hang Seng Index losing over 2.3%. A report of the United States considering sanctions against China to ward off any potential attack on Taiwan further soured market sentiment.

Hong Kong Stocks Today
Stock Movement
Alibaba Group Holding Ltd. BABA  -3.56%
JD.com Inc JD -3.26%
Baidu Inc BIDU -4.48%
Tencent Holdings Ltd. TCEHY           -1.31%
Meituan MPNGF -1.63%
Nio Inc NIO 1.61%
XPeng Inc XPEV -1.01%
Li Auto Inc LI 1.74%

Despite the sell-off, shares of EV makers Nio and Li Auto held up with gains of over 1%.

Also Read: It's The Worst Day Of 2022 For The Major Indexes

Macro News: Chinese Premier Li Keqiang has called for more policies to boost consumption in the economy as the latest data indicate a further slump in travel and spending over a three-day public holiday amid COVID-19 controls, reported Bloomberg.

The United States is looking at options for a sanctions package against China to prevent it from invading Taiwan, with the European Union coming under diplomatic pressure from Taipei to do the same, Reuters reported, citing sources.

Company NewsStarbucks Corporation SBUX has said it is planning to have about 9,000 stores in China by 2025, which is a 56% rise from the present count, reported Reuters.

Tencent Holdings received approval for a new game for the first time since Chinese authorities froze all licensing in 2021, according to media reports.

Top Gainers and Losers: Techtronic Industries Company Limited and WuXi Biologics (Cayman) Inc. are the top losers among Hang Seng's top 30 constituents, shedding over 6% and 4%, respectively. CNOOC Limited is the only gainer, up 0.6% on Wednesday morning.

Global News: U.S. futures traded mixed on Tuesday morning Asia session. The Dow Jones futures were up 0.08%, while Nasdaq futures lost 0.07%. The S&P 500 futures rose 0.04%.

Elsewhere in Asia, Australia’s ASX 200 plunged 2.76%. Japan’s Nikkei 225 was down 2.29% while China’s Shanghai Composite index fell 0.74%. South Korea’s Kospi, too, was down 1.62%.

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