Shares of major U.S.-listed Chinese companies were trading mixed in Hong Kong on Monday, with gains in major tech stocks offsetting a drag in the electric vehicle sector.
Alibaba Group Holdings BABA, Tencent Holdings TCEHY, Baidu Inc BIDU, and JD.com Inc JD shot up. Among EV stocks Xpeng Inc XPEV and Li Auto Inc LI slipped, while Nio Inc NIO traded in the green.
Shares of these Chinese companies ended higher on U.S. bourses on Friday.
Global Markets Recap: At press time, the benchmark Hang Seng Index was trading 2.75% higher amid signs of economic recovery in China.
Elsewhere, Shanghai’s SSE Composite Index gained 1.16%, Singapore’s SGX Nifty was up 0.84%, while Japan’s Nikkei 225 inched 1.04% higher.
Macro Factors: Hong Kong stocks approached their highest level in three months, hoping that the economic data this week would show China’s recovery from COVID-19 woes. According to consensus forecasts on the Purchasing Managers’ Index tracked by Bloomberg, China’s manufacturing is expected to have expanded last month, defying the contraction trend in the past three months.
China is also relaxing its lockdown measures further, with capital Beijing resuming in-class teaching from Monday. Elsewhere, Shanghai’s Communist Party chief declared a victory in the city’s battle against COVID-19 in a meeting over the weekend.
Company In News: Alibaba Group, JD.com, and Tencent Holdings may not be out of the woods yet. According to reports, China’s regulatory crackdown, which has seen a let-up recently, could come back in full force soon.
Korea Investment Management Co fund has gradually lowered its exposure to Tesla Inc TSLA, but has added names including BYD Co BYDDY and Xpeng in March and April on the dip.