Shares of U.S.-listed Chinese electric automakers Nio Inc. (NYSE: NIO), Xpeng Inc (NYSE: NYSE:XPEV), and Li Auto Inc (NASDAQ: LI) traded significantly lower in Hong Kong on Thursday morning.
| Nio | -6.25% |
| Xpeng | -6.99% |
| Li Auto | -4.99% |
Global Markets Recap: Hong Kong's benchmark index Hang Seng slumped 0.98%, erasing gains from previous sessions.
Elsewhere, in the broader markets, Australia's ASX 200 slipped over 1%, while Shanghai's SSE (LON:SSE) Composite Index was down 0.20%, and Japan's Nikkei 225 shed 0.84%.
This came after the U.S. indices finished Wednesday's trading session lower.
Macro Factors: The Asian stocks echoed similar notes as their western peers and followed in the footsteps of the overnight sell-off in the U.S. markets. The U.S. Markets were highly volatile following the April consumer price index (CPI) report, which showed worse-than-expected inflation.
The headline CPI rose 8.3% in April, down slightly from 8.5% in March but above economist estimates of 8.1%. Prior to 2022, the CPI hadn't risen 8.3% in any month since 1982.
Meanwhile, Hong Kong Monetary Authority bought about HK$ 1.59 billion to prop up the currency, SCMP reported. The intervention by the de facto central bank is one of the first since 2019, as the country's currency was on a downtrend due to the rising interest rates in the United States.
Company In News: Nio confirmed that its secondary listing in Singapore is expected to happen on May 20. The announcement comes amid the threat of a potential delisting in the U.S. that has led to a sell-off in the stock.
Five analysts have an average price target of $39.4 versus the current price of Li Auto at $19.67, implying an upside.
Norges Bank, the central bank of Norway, offloaded about 70% of its holdings in Chinese EV startup XPeng. However, it increased its stake in Li Auto and Nio. At the end of the first quarter, Norges Bank held about 4.50 million shares of Li Auto, up 47% from the previous quarter.
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