Alibaba Stock Sees Market Correction In Hong Kong After Opening Higher, JD And Nio EV Rivals Xpeng, Li Auto Surge

Shares of Alibaba Group Holding Limited BABA pared early gains and traded lower in Hong Kong on Wednesday, while Chinese electric vehicle makers Li Auto Inc. LI and Xpeng Inc. XPEV, as well as e-commerce company JD.com Inc. JD, extended gains from the previous session.

What’s Moving: Alibaba’s shares traded 1.3% lower at HKD 164.10 ($21.09) in Hong Kong, while Li Auto’s shares traded 0.9% higher at HKD 116.20 ($14.93). Xpeng’s shares traded almost 1.5% higher at HKD 157.90 ($20.29). JD.com’s shares were 4.1% higher at HKD 291.60 ($37.47).

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Why Is It Moving? Shares of Chinese companies had closed notably higher in U.S. trading on Tuesday after agriculture-focused technology platform Pinduoduo Inc. PDD reported its first quarterly net profit. JD.com had reported better-than-expected quarterly results on Monday.

The upbeat quarterly results helped comfort investors amid worries about China’s domestic regulatory crackdown.

Electric vehicle stocks had also come under pressure in Hong Kong last week following a fatal crash involving a Nio Inc. NIO vehicle that had the autopilot function turned on.

Cathie Wood-led Ark Invest also reversed course, adding some shares in Pinduoduo on Tuesday after over a month of constant shedding of stakes in U.S.-listed Chinese stocks; Wood's firm continued trimming its stake in Alibaba.