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Alibaba Leads Hang Seng Lower After Management Change; JD, Tencent And Nio Rivals Xpeng, Li Auto Also Tumble

Shares of Alibaba Group Holding Limited (NYSE: BABA), JD.Com Inc. (NASDAQ: JD), Tencent Holdings Inc. (OTC: TCEHY), Baidu Inc. (NASDAQ: BIDU), Xpeng Inc. (NYSE: XPEV) and Li Auto Inc. (NASDAQ: LI) fell sharply in Hong Kong on Monday.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 7.0% lower at HKD 111.00 in Hong Kong, while peer JD.Com’s shares have lost 3.7% to HKD 309.60.

Four new stocks — including JD.Com and Netease — were added to Hong Kong’s benchmark Hang Seng Index on Monday.  

See Also: How To Buy Alibaba (BABA) Stock

Technology company Baidu’s shares have fallen 4.5% to HKD 136.60 and tech conglomerate Tencent’s shares are down 2.2% to HKD 452.40.

Electric vehicle maker Li Auto’s shares have tumbled 11.3% to HKD 120.20 and peer Xpeng’s shares have lost 6.0% to HKD 184.20.

The tech stocks are trading weak following DiDi Global Inc.’s (NYSE: DIDI) decision to delist its shares from the New York Stock Exchange and pursue a listing in Hong Kong. The news triggered concerns that other Chinese stock listings in the U.S. also could move to Hong Kong.

The Hang Seng Index opened lower on Monday and was down 1.2% at the time of writing. The index closed flat on Friday after two straight days of gains.

Why Is It Moving? The Hang Seng Index has fallen after Alibaba replaced its long-standing CFO and announced a reorganization of its e-commerce business. Alibaba said its deputy chief financial officer Toby Xu will succeed Maggie Wu as CFO from April next year.

The spread of the Omicron coronavirus variant in Hong Kong and worries about rising debt default among Chinese developers also weighed on the market.

Shares of China Evergrande Group (OTC: EGRNY) fell more than 11% on Monday after the heavily-indebted property developer said there was no guarantee it would have sufficient funds to meet its debt obligations. The company added it has received a demand from creditors to pay about $260 million.

The government of Guangdong province, where Evergrande is based, has summoned Evergrande Chairman Hui Ka Yan following the company’s announcement. The government also said it would send a working group to oversee risk management at the developer, Reuters reported.

Meanwhile, Hong Kong Exchanges & Clearing Ltd. plans to establish a representative office in New York as early as next year to market its offerings in the U.S. amid rising doubts over the former British colony’s status as an international financial hub, as per a report by Bloomberg.

Shares of Chinese companies closed sharply lower in U.S. trading on Friday after the major averages in the U.S. ended lower following the release of disappointing jobs data for November and on concerns related to the Omicron COVID variant.

Alibaba’s shares closed 8.2% lower, while Nio’s shares ended lower by almost 11.2%.

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