Shares of U.S.-listed Chinese tech companies slumped in Hong Kong on Wednesday and weighed on the benchmark Hang Seng Index, which extended losses to a fourth straight day.
| Stock | Movement (+/-) |
|---|---|
| Alibaba Group Holding Limited (NYSE:BABA) | -3.9% |
| Li Auto Inc. (NASDAQ:LI) | -3.5% |
| Tencent Holdings Limited (OTC:TCEHY) | -2.8% |
| JD.com Inc. (NASDAQ:JD) | -1.7% |
| Baidu Inc. (NASDAQ:BIDU) | -1.4% |
| Xpeng Inc. (NYSE:XPEV) | -0.4% |
See Also: How To Buy Alibaba (BABA) Stock
The Macro Factors: The Hang Seng Index pared gains after opening higher and was down 2.1% at press time.
Worries about a surge in inflation due to the energy crisis stemming from the Russia-Ukraine war weighed on the market. U.S. President Joe Biden on Tuesday announced a ban on Russian oil imports.
U.S. crude oil futures gained 2.1% to $126.41 per barrel in Asian trades on Wednesday.
Surging COVID-19 cases in Hong Kong also dampened risk appetite, with a Bloomberg report saying that it plans to open more isolation facilities for the elderly and has asked China to send medical teams.
China’s producer price index (PPI) rose 8.8% year-on-year in February, but eased from a 9.1% growth in January, Reuters reported, citing data from the National Bureau of Statistics. Consumer prices climbed 0.9% in February, unchanged from a month earlier.
Companies In The News: Morgan Stanley analyst Eddy Wang lowered the brokerage's price target on e-commerce giant JD.Com to $85 from $98, but kept an 'overweight' rating on its stock. The analyst noted that JD.Com delivered much more resilient revenue growth than its peers in 2021.
Elon Musk-led Tesla Inc. (NASDAQ: TSLA) reported lower sales of China-made vehicles in February but was able to weather the industrywide softness fairly well compared to its Chinese rivals.
Shares of Chinese companies, including electric vehicle maker Nio Inc. (NYSE: NIO), closed lower in U.S. trading on Tuesday after the major averages ended in negative territory.
