Alibaba, JD Put Up Resistance As Hang Seng Index Falls Below 15,000 Level For 1st Time Since 2009

Hong Kong stocks traded mixed on Tuesday with the benchmark Hang Seng Index falling over 1% in morning trade as investors continued to flee mainland Chinese stocks following President Xi Jinping’s historic consolidation of power.

At the time of writing, Hang Seng was trading below the 15,000 mark, falling below the mark for the first time since April 2009.

Shares of Alibaba traded over 0.2% higher while Xpeng shares gained over 2% in morning trade. Li Auto shares dropped over 4% while Nio shares fell over 3%.

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Macro News: China's September new home prices declined for the second straight month dragged by mortgage boycotts, a heightened debt crisis and COVID-19 curbs, reported Reuters.

The People’s Bank of China has adjusted rules to permit companies to borrow more from overseas, allowing more foreign capital inflows at a time when the yuan is plunging against the dollar, reported Bloomberg.

Company News: Xpeng’s G9 sport utility vehicle has passed a closed-field autonomous-driving test, taking the company's plan to launch an autonomous taxi business forward, reported the South China Morning Post.

Tesla is cutting prices for its Giga Shanghai-made cars by about 5%, reversing the price hikes announced earlier this year.

Top Gainers and Losers: New World Development Company Limited and China Mengniu Dairy Company Limited are the top losers among Hang Seng constituents, having shed over 4% and 2%, respectively. Alibaba Health Information Technology Limited and Lenovo Group Limited are the top gainers, having risen over 2% respectively.

Global News: U.S. futures traded in the red on Tuesday morning Asia session. The Dow Jones futures were down 0.14% while the Nasdaq futures lost 0.24%. The S&P 500 futures were trading lower at 0.16%.

Elsewhere in the Asia Pacific, Australia’s ASX 200 was down 0.19%. Japan’s Nikkei 225 gained 0.79% while China’s Shanghai Composite index lost 0.57%. South Korea’s Kospi was trading flat.

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