Alibaba Slips, Tencent, Baidu Extend Gains: What's Weighing On Hong Kong Tech Stocks Today?

Shares of U.S.-listed Chinese tech companies Alibaba Group Holdings Ltd. BABA, JD.Com Inc. JD, Tencent Holdings TCEHY, and Baidu Inc. BIDU were mixed in Hong Kong trading early on Wednesday.

While JD.com and gaming giant Tencent extended gains for the second day in a row, Alibaba and Baidu were trading lower at press time.

Macro Factors: The benchmark Hang Seng was trading in the red, although investors took some respite from the HSI volatility index showing a downward trend.

Meanwhile, U.S. markets ended Tuesday lower as investors reacted to the March CPI report and continued to assess rate hike concerns. The CPI data showed consumer prices rose 8.5%, while core inflation came in slightly below estimates.

Companies In News: The rally in Tencent shares was fueled by China ending a freeze on new game approvals. The government approved 45 new games, making the first batch of approvals since July 2021.

According to the U.S. Tiger Securities report, while Tencent's games are not in the 45 newly approved games, the resumption of the approval process should serve as a positive catalyst and signals potential regulatory relaxation. The company maintained its 'buy' rating on Tencent but trimmed its price target to HK$475 from HK$480.