Shares of Alibaba Group Holding Limited (NYSE: BABA), Baidu Inc. (NASDAQ: BIDU) and Li Auto Inc. (NASDAQ: LI) fell in Hong Kong on Wednesday, while Tencent Holdings Inc. (OTC: TCEHY) and JD.Com Inc. (NASDAQ: JD) advanced and Xpeng Inc. (NYSE: XPEV) traded flat.
What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 3.9% lower at HKD 121.50 in Hong Kong after a strong 12% rally in the previous session, while peer JD.Com’s shares have risen almost 0.5% to HKD 308.40.
See Also: How To Buy Alibaba (BABA) Stock
Technology company Baidu’s shares have lost almost 0.5% to HKD 147.30, while tech conglomerate Tencent’s shares are up 1.4% to HKD 470.20.
Electric vehicle maker Li Auto’s shares have fallen 2.1% to HKD 120.00, while peer Xpeng’s shares traded flat at HKD 185.70.
Meanwhile, shares of Weibo Corp. (NASDAQ: WB), the Chinese equivalent of Twitter Inc. (NYSE: TWTR), fell in their Hong Kong trading debut on Wednesday. The shares opened 6% lower at HKD 256.20, compared to the listing price of HKD 272.80.
Hong Kong’s benchmark Hang Seng Index opened higher on Wednesday, but pared gains and was flat at the time of writing. The index closed 2.7% higher on Tuesday.
Why Is It Moving? The Hang Seng Index opened higher amid improved risk appetite after the People’s Bank of China said Tuesday it wil cut the reserve requirement ratio (RRR) for major commercial banks for the second time this year.
Investors turned cautious amid lingering worries about China’s troubled real estate sector,
Trading in shares of real estate developer Kaisa Group Holdings Ltd. were suspended on Wednesday. The company was unlikely to meet its $400 million offshore debt deadline on Tuesday, Reuters reported, citing a source with direct knowledge of the matter.
Heavily indebted property developer China Evergrande Group (OTC: EGRNY) has also failed to make payments on dollar bonds at the end of a 30-day grace period.
Shares of Chinese companies closed higher in U.S. trading on Tuesday after the major averages in the U.S. ended notably higher amid easing concerns about the Omicron coronavirus vairant.
Alibaba’s shares closed almost 1.6% higher, while Nio’s shares ended higher by 2.4%.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.