Shares of U.S.-listed Chinese companies were trading mixed in Hong Kong on Wednesday morning, with tech stocks taking a hit.
Alibaba (NYSE:BABA) Group Holding (NYSE: BABA), JD.com Inc (NASDAQ: JD), and Baidu Inc (NASDAQ: NASDAQ:BIDU) traded in the red, while Tencent Holdings (HK:0700) (OTC: TCEHY) was slightly higher. In the electric vehicle segment, Nio Inc (NYSE: NIO), Li Auto Inc (NASDAQ: LI), and Xpeng Inc (NYSE: NYSE:XPEV) were in the green at press time.
| Alibaba | -0.94% |
| JD.Com | -0.62% |
| Baidu | -4.68% |
| Tencent | 0.22% |
| Nio | 3.24% |
| Xpeng | 0.43% |
| Li Auto | 0.30% |
Global Markets Recap: At the time of writing, the benchmark Hang Seng Index was down 0.47%, as tech stocks fell on the Nasdaq ending 0.41% lower on Tuesday.
Elsewhere, Asian peers showed mixed sentiment, with Australia's ASX 200 and Shanghai's SSE (LON:SSE) Composite Index trading in negative territory, while Japan's Nikkei 225 was up 0.71%.
Macro Factors: The Chinese government has formally ended its two-month-long COVID-19 lockdown in the country's most populous city, Shanghai, as cases dip further.
The Caixin/Markit Manufacturing Purchasing Managers' Index data showed China's factory activity in May improved from a 26-month low in April as COVID-19 restrictions eased. The index rose to 48.1 in May from 46.0 in April.
In an interview with CNN, U.S. Deputy Treasury Secretary Wally Adeyemo said the Biden administration was mulling cutting some tariffs on Chinese goods but sought a balance to address unfair competition from China.
Company In News: Frankfurt-based analyst at DZ Bank, Manuel Muehl, has cut the price target of Alibaba's shares by 15% to $85. Muehl is the same analyst whose calls on Alibaba beat 67 peers over the last year after he slashed his target price by 15% despite positive results, according to SCMP.
Morgan Stanley (NYSE:MS) on Tuesday added the Nio stock to its "tactical idea" list. It expects Nio shares to catch a boost as COVID-19 restrictions are lifted in Shanghai.
According to Economic Times, India's top court has directed the Registrar of Companies and the Maharashtra police not to take any coercive action against the chartered accountant who allegedly assisted in incorporating Alibaba Cloud (India) LLP.
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