Alibaba, Nio Slide Over 3%: Hong Kong Stocks Falter As China COVID-19 Death, Rising Cases Spark Fears

Zinger Key Points
  • Shares of Alibaba and Meituan lost over 5% in morning trade.
  • EV-maker stocks took a hit with Nio and Xpeng shedding over 3% on Monday morning.
  • China kept its benchmark lending rates unchanged for the third straight month.

Hong Kong stocks opened lower on Monday, with the benchmark Hang Seng losing over 2.5% in morning trade, as COVID-19 cases continued to rise in China and Beijing’s most populous district extended its stay-at-home requests to residents.

Hong Kong Stocks Today
Stock Movement
Alibaba Group Holding Ltd. BABA  -5%
JD.com Inc JD -5.6%
Baidu Inc BIDU -2.72%
Tencent Holdings Ltd. TCEHY           -1.6%
Meituan MPNGF -5.74%
Nio Inc NIO -3.41%
XPeng Inc XPEV -3.89%
Li Auto Inc LI -2.98%

Shares of Alibaba and Meituan lost over 5% in morning trade. EV-maker stocks also took a hit, with Nio and Xpeng shedding over 3%.

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Macro News: Chaoyang, which is Beijing's most populous district, has asked residents to stay at home on Monday, extending a call from the weekend as the city's COVID-19 case numbers rose, reported Reuters. The country's first COVID-related death in Beijing also spurred worries of more severe restrictions, according to Bloomberg.

China kept its benchmark lending rates unchanged for the third straight month, with the one-year loan prime rate maintained at 3.65%, while the five-year LPR was unchanged at 4.30%, reported Reuters.

Chinese exports to the U.S. declined by 12.6% year-on-year to $47 billion in October, reported the South China Morning Post citing Chinese customs data.

Company News: JD.com reported third-quarter FY22 revenue growth of 11.4% year-on-year to $34.2 billion, missing the consensus of $34.4 billion.

Geely Automobile Holdings-owned Zeekr's cumulative deliveries exceeded 60,000 units, reported CnEVPost.

Top Gainers and Losers: Meituan and JD.com were the top losers among Hang Seng constituents, having shed over 5% each. All Hang Seng stocks traded in the red on Monday.

Global News: U.S. futures traded in the red on Monday morning Asia session. The Dow Jones futures were down 0.3% while the Nasdaq futures lost 0.33%. The S&P 500 futures were trading lower by 0.37%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was down 0.14%. Japan’s Nikkei 225 traded 0.12% lower while China’s Shanghai Composite index was down by 0.9%. South Korea’s Kospi lost 1.27%.

Read Next: Larry Summers Backs Fed Moves, Urges Caution In US Diplomacy: 'Not For Us To Tell China How They Should Organize Their Society'

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