Asian Bloodbath Continues: Alibaba, XPeng Shed 2%, Yuan Hits Weakest Levels Since 2008

Zinger Key Points
  • Xpeng, Nio and Li Auto fell over 5% in Hong Kong.
  • The Chinese yuan hit its lowest levels since 2008.
  • Chinese monetary authorities have asked local banks to revive a yuan fixing tool.
Asian Bloodbath Continues: Alibaba, XPeng Shed 2%, Yuan Hits Weakest Levels Since 2008

Hong Kong shares opened lower on Wednesday, with the benchmark Hang Seng slipping 2.5%, taking cues from the S&P 500 which fell deeper into the bear territory after hitting a near two-year low. The Chinese yuan hit its lowest level since 2008 and was trading at 7.2296 against the dollar on Wednesday.

Hong Kong Stocks Today
Stock Movement
Alibaba Group Holding Ltd. BABA  -2.05%
JD.com Inc JD -5.45%
Baidu Inc BIDU -2.87%
Tencent Holdings Ltd. TCEHY           -1.42%
Meituan MPNGF -2.41%
Nio Inc NIO -6.81%
XPeng Inc XPEV -7.58%
Li Auto Inc LI -5.7%

EV-maker stocks sank in Hong Kong trading, with shares of Xpeng, Nio and Li Auto shares falling over 5%. Shares of JD.com plunged 5%, while Alibaba lost over 2%.

Also Read: Larry Summers 'Glad' IMF Recognizes 'Gravity' Of British Situation: Here's His Take On Inflation

Macro News: China’s industrial profits dropped 2.1% in the first eight months of 2022 compared to a year earlier, after a 1.1% drop logged in January-July, reported Reuters citing data from the National Bureau of Statistics (NBS).

Chinese monetary authorities have asked local banks to revive a yuan fixing tool that was abandoned two years ago as they look to defend the rapidly weakening currency, reported Reuters.

Company News: Tencent’s online literature arm stated it would pull the plug on its e-reader service, reported the South China Morning Post.

William Li, founder-CEO of Chinese EV maker Nio, has warned that Europe’s energy crisis is slowing its expansion in a region where it is aiming to take on dominant players, reported FT.

Top Gainers and Losers: Country Garden Services Holdings Company Limited and JD.com, Inc. are the top losers among Hang Seng constituents, having lost over 6% and 5% respectively. There were no gainers on Wednesday.

Global News: U.S. futures traded in the red on Wednesday morning Asia session. The Dow Jones futures were down 0.37% while the Nasdaq futures lost 0.6%. The S&P 500 futures were down 0.46%.

Elsewhere in Asia, Australia’s ASX 200 was down 0.7%. Japan’s Nikkei 225 was down 2.31% while China’s Shanghai Composite index lost 0.73%. South Korea’s Kospi was down 2.41%.

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