Shares of Alibaba Group Holding Limited BABA, JD.Com Inc. JD and Baidu Inc. BIDU fell in Hong Kong on Wednesday, while Tencent Holdings Inc. TCEHY and Nio Inc. NIO peers Li Auto Inc. LI and Xpeng Inc. XPEV traded higher.
What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 0.6% lower at HKD 164.20 in Hong Kong, while e-commerce company JD.Com’s shares have fallen 0.8% to HKD 335.20 and technology company Baidu’s shares have lost 0.7% to HKD 167.70.
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Meanwhile, tech conglomerate Tencent’s shares are up 0.9% to HKD 507.00 amid speculation that Chinese regulators may resume online game approvals following a three-month halt.
Electric vehicle maker Li Auto’s shares have gained almost 5.7% to HKD 126.80 and peer Xpeng’s shares have risen 1.7% to HKD 194.40.
Xpeng is expected to launch a new sports utility electric vehicle this week.
Hong Kong’s benchmark Hang Seng Index opened lower on Wednesday and was down almost 0.5% at the time of writing.
The index closed almost 1.3% higher on Tuesday, extending gains to a sixth straight session, amid optimism surrounding the summit between U.S. President Joe Biden and Chinese President Xi Jinping.
Why Is It Moving? The Hang Seng Index retreated as investors focused on upcoming earnings results from Baidu later in the day and from Alibaba on Thursday. The quarterly earnings results are expected to show the impact of the regulatory crackdown by Beijing on tech companies as well as weak consumer demand.
Baidu is expected to report an 82% year-on-year fall in net income for the third quarter, while Alibaba’s earnings are projected to slide 17%, according to a report by Bloomberg.
Meanwhile, heavily indebted property developer China Evergrande Group EGRNY has dissolved some district-level units of its online real estate and automobile marketplace Fangchebao, Reuters reported, citing Chinese media outlet Cailianshe.
State-owned travel retailer China Tourism Group Duty Free Corp. has received approval from the Hong Kong stock exchange to proceed with a share sale that could raise about $5 billion, as per a report by Bloomberg, citing unnamed sources.
Shares of Chinese companies closed higher in U.S. trading on Tuesday after the major averages in the U.S. closed in positive territory following upbeat economic data.
Alibaba’s shares closed 1.1% higher, while Nio’s shares ended higher by almost 0.3%.
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