Why Alibaba's Shares Are Sliding In Hong Kong Today While Tesla Chinese Rivals Strike Gains

Shares of U.S.-listed Chinese tech companies traded mixed in Hong Kong on Monday, while Alibaba Group Holding Limited’s BABA fall weighed on the benchmark Hang Seng Index.  

Stock Movement (+/-)
Alibaba Group Holding Limited BABA -3.8%
Tencent Holdings Limited TCEHY -1.7%
Baidu Inc. BIDU -0.2%
Xpeng Inc. XPEV +2.0%
Li Auto Inc. LI +1.5%
JD.com Inc. JD +0.8%

Alibaba's shares fell after the company filed in the U.S. to register one billion new American Depositary Shares (ADS). Each ADS represents eight ordinary shares of the Chinese e-commerce giant.

The e-commerce giant's regulatory filing may indicate that SoftBank Group Corp. SFTBY — which holds a 24.8% stake in Alibaba — may intend to sell some of its shares, Bloomberg reported, citing a research note by Citigroup Inc. C analysts.

See Also: How To Buy Xpeng Motors (XPEV) Stock

Why Is It Moving? The Hang Seng Index was down almost 0.6% at the time of writing.

Activity in China’s services sector in January expanded at the slowest pace in five months amid a surge in coronavirus cases and subsequent containment measures, a private survey showed Monday.

The Caixin/Markit services Purchasing Managers' Index (PMI) fell to 51.4 in January from 53.1 in December. The 50-point mark separates expansion from contraction on a monthly basis.

The overall number of deals in Hong Kong’s property market fell to a 17-month low in January as the financial hub struggled with a fifth coronavirus outbreak, the South China Morning Post reported, citing data from Centaline Property Agency.

Shares of Chinese companies, including electric vehicle maker Nio Inc. NIO, closed broadly higher in U.S. trading on Friday after the major averages in the U.S. ended mostly in positive territory.

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