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Continued Setbacks: Why Alibaba, Other Tech Stocks Are Slumping In Hong Kong Despite Upbeat China Data

Shares of U.S.-listed Chinese tech companies fell in Hong Kong on Friday, extending losses from the previous session and leading the benchmark Hang Seng Index lower.

What’s Moving: Shares of Alibaba Group Holding Limited (NYSE: BABA), Tencent Holdings Inc. (OTC: TCEHY), Baidu Inc. (NASDAQ: BIDU), JD.Com Inc. (NASDAQ: JD) and Li Auto Inc. (NASDAQ: LI) traded lower in a range of 1% to 4%, while Xpeng Inc. (NYSE: XPEV) advanced almost 1%.

The benchmark Hang Seng Index opened lower on Friday and was down 0.9% at the time of writing. The index closed 0.1% higher on Thursday.

See Also: How To Buy Alibaba (BABA) Stock

Why Is It Moving? The Hang Seng Index fell after two days of gains following steep losses in tech stocks.

Alibaba’s affiliate Ant Group’s restructuring hit a roadblock after China Cinda Asset Management announced it has withdrawn from an agreement to buy a 20% stake in the consumer finance unit of Ant Group.

Jiangsu Yuyue Medical Equipment & Supply also said it is scrapping its plan to invest in Ant’s consumer finance unit, the South China Morning Post reported.

Meanwhile, China’s trade surplus reached $94.5 billion in December and exceeded estimates as exports hit fresh records, as per a report by Bloomberg.

Tesla Inc. (NASDAQ: TSLA) and Nio Inc.’s (NYSE: NIO) China-based battery supplier CATL retained its dominance of the Chinese power battery market with a 52.1% market share last year, it was reported on Thursday, citing cnEVpost.

Shares of Chinese companies closed notably lower in U.S. trading on Thursday after the major averages in the U.S. ended lower following a tech-driven selloff.

Alibaba’s shares closed 4.4% lower, while Nio’s shares ended lower by almost 53.8%.

Read Next: Tesla Starts Rolling Out Software Update To Address The Heat Pump Not Working In Extreme Cold

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