Alibaba And Tesla Rivals Nio, Xpeng Plunge In Hong Kong Today Amid Worries Over New COVID-19 Restrictions In China

Shares of U.S.-listed Chinese tech companies tumbled in Hong Kong on Monday and dragged the benchmark Hang Seng Index sharply lower for a second straight day amid worries about a growing COVID-19 outbreak in China.

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The Macro Factors: The Hang Seng Index opened sharply lower and was down 3.8% at the time of writing.

A government-imposed COVID-19 lockdown in the southern Chinese city of Shenzhen added to worries about regulatory risks for Chinese companies in the United States. Uncertainty about the economic impact arising from the Russia-Ukraine war also stoked risk aversion.

China has placed Shenzhen into a lockdown for at least a week amid a surge in COVID-19 infections and city authorities will carry out three rounds of city-wide mass testing next week, the South China Morning Post reported.

Companies In The News: Apple Inc. AAPL supplier Hon Hai Precision Industry Co. Ltd. HNHPF has halted production of iPhones at its site in Shenzhen due to the lockdown.

DiDi Global Inc. DIDI has halted plans to list its shares in Hong Kong after Chinese regulators informed the ride-hailing giant that its proposals to prevent security and data leaks fell short of requirements, according to Bloomberg.

The central bank of Norway held 13.75 million shares of electric vehicle maker Nio worth $435.59 million at the end of December, it was reported Friday.

Shares of Chinese companies closed sharply lower in U.S. trading on Friday after the major averages ended notably lower amid rising worries about the economic impact of the ongoing Russia-Ukraine war.

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