Shares of Alibaba Group Holding Limited BABA, Baidu Inc. BIDU, JD.Com Inc. JD, Tencent Holdings Inc. TCEHY, Li Auto Inc. LI and Xpeng Inc. XPEV fell in Hong Kong on Thursday.
What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 4.7% lower at HKD 157.00 in Hong Kong, while technology company Baidu’s shares have lost 8.1% to HKD 155.90 and e-commerce company JD.Com’s shares have fallen 3.3% to HKD 323.80.
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Meanwhile, tech conglomerate Tencent’s shares are down 2.6% to HKD 496.00.
Electric vehicle maker Xpeng’s shares have lost 3.6% to HKD 190.30 and peer Li Auto’s shares are down 0.7% to HKD 127.90.
Hong Kong’s benchmark Hang Seng Index opened lower on Thursday and was down 1.3% at the time of writing. The index closed 0.3% lower on Wednesday, ending a six-day winning streak.
Why Is It Moving? The Hang Seng Index extended losses from the previous session as investors focused on anticipated weaker earnings results from Chinese tech giants this week.
The results are expected to show the impact of the year-long regulatory crackdown by Beijing on Big Tech as well as the slowdown in the world’s second-largest economy.
Baidu on Wednesday reported better-than-expected earnings for the third quarter, while revenue missed estimates and the company also issued revenue guidance for the fourth quarter with a midpoint below estimates, citing limited “business visibility.”
Alibaba’s second-quarter earnings are projected to slide 17%, according to a report by Bloomberg. The company is scheduled to report its quarterly results later today.
Meanwhile, heavily indebted property developer China Evergrande Group EGRNY is selling its entire stake in film and television streaming company HengTen Network Holdings for about $273.5 million, Reuters reported.
Embattled Chinese state-owned asset manager China Huarong Asset Management Co. said it plans to raise fresh capital worth RMB 42 billion ($6.6 billion) by selling shares to a state consortium led by Citic Group.
Shares of Chinese companies closed notably lower in U.S. trading on Wednesday after the major averages in the U.S. closed in negative territory.
Alibaba’s shares closed almost 4.1% lower, while Nio Inc.’s NIO shares ended lower by almost 2.5%.
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