Shares of major U.S.-listed Chinese companies were trading lower in Hong Kong on Tuesday, with major tech stocks like Alibaba (NYSE:BABA) Group Holdings (NYSE: BABA), Tencent Holdings (HK:0700) (OTC: TCEHY), Baidu Inc (NASDAQ: NASDAQ:BIDU), and JD.com Inc (NASDAQ: JD) slipping between 0.9% and 4.6%.
In the electric vehicle segment, Xpeng Inc (NYSE: NYSE:XPEV) and Li Auto Inc (NASDAQ: LI) cracked nearly 4%, while Nio Inc (NYSE: NIO) led losses with a near 9% fall.
| Alibaba | -2.29% |
| Tencent | -4.60% |
| Baidu | -0.85% |
| JD.com | -4.30% |
| Nio | -8.94% |
| Xpeng | -4.64% |
| Li Auto | -3.35% |
Global Markets Recap: At press time, the benchmark Hang Seng Index was trading 0.71% lower, following three sessions of gains as global market cues were mostly weak.
In the U.S., the Dow Jones Industrial Average failed to hold on to opening gains and cracked 0.20% even after stronger-than-expected data.
Elsewhere, Shanghai's SSE (LON:SSE) Composite Index was down 0.13%, Japan's Nikkei 225 shed 0.15%, while Singapore's SGX Nifty was nearly a percent higher.
Macro Factors: Strategists at JPMorgan (NYSE:JPM) Private Bank have expressed “concerns” about the Chinese economy.
“The size of the overall policy stimulus is unlikely to match previous easing cycles…We are also concerned that in the absence of a clear COVID exit roadmap, overall sentiment will likely remain weak, and further easing could be rendered less effective,” the report said, according to SCMP.
The Group of 7 also announced a $600 billion global infrastructure plan in underdeveloped countries to compete with China's formidable Belt and Road Initiative.
Company In News: Amsterdam-listed technology investor Prosus NV will pare its stake in Tencent Holdings to fund a stock buyback of itself and parent Naspers.
Chinese e-commerce giant Alibaba is shutting down its R&D center in Israel. The company notified around 50 employees on Sunday, CTech reported.
Alibaba also said that it had been granted a license to test its L4 self-driving trucks on public roads without safety officers.
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