Shares of U.S.-listed Chinese tech companies traded notably lower in Hong Kong on Tuesday, dragging the benchmark Hang Seng Index into negative territory for the second straight day.
Why Is It Moving? The Hang Seng Index was down 1.4% at the time of writing, as investors remained cautious ahead of this week’s U.S. Federal Reserve meeting.
While the Fed is likely to leave interest rates unchanged following its two-day monetary policy meeting on Wednesday, the accompanying statement could hint at the first rate hike as early as March.
Worries about surging COVID-19 cases in Hong Kong also weighed on the market after the financial hub recorded triple-digit coronavirus infections for the second straight day on Monday, the South China Morning Post reported.
See Also: How To Buy Xpeng Motors (XPEV) Stock
What’s Moving: U.S.-listed Chinese tech companies traded lower following the news.
- Xpeng Inc. (NYSE:XPEV) - down 5.1%
- Baidu Inc. (NASDAQ:BIDU) - down 3.8%
- Li Auto Inc. (NASDAQ:LI) - down 3.4%
- JD.com Inc. (NASDAQ:JD) –down 2.9%
- Alibaba Group Holding Limited (NYSE:BABA) - down 1.2%
- Tencent Holdings Limited (OTC:TCEHY) - down 1.2%
Shares of mainland property developers such as Agile Group Holdings and Yuzhou Group fell amid indications of persistent liquidity stress in the sector.
Agile Group announced the sale of its stake in a joint venture on Monday as part of efforts to reduce its debt.
Property developer Shimao Group Holdings also said it has sold its 26.7% stake in the Guangzhou Asian Games City to joint venture partner China Overseas Land & Investment Ltd.
Heavily indebted property developer China Evergrande Group (OTC:EGRNY) said it has sought more time from its offshore creditors to implement a reorganization plan that will be beneficial to all stakeholders.
Shares of Chinese companies, including electric vehicle maker Nio Inc. (NYSE:NIO), closed sharply lower in U.S. trading on Monday even as the major averages in the U.S. recovered after a sharp sell-off earlier in the day to close higher.
