Tesla Rival Nio Shoots Up 9%, Alibaba Clocks 4% Gain: What's Driving The Hong Kong Markets Today?

Shares of several of the U.S.-listed Chinese tech companies are trading significantly higher in Hong Kong on Monday — while the benchmark Hang Seng Index trimmed early gains — as investors hoped for policy support measures from Beijing.

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The Macro Factors: The benchmark Hang Seng Index pared initial gains and was up about 0.3% at press time.

China on Monday kept its one-year loan prime rate (LPR) unchanged at 3.7%, in line with analysts’ expectations, Reuters reported. The LPR saw two consecutive cuts in December and January.

Investors are now hopeful for policy support measures by Beijing.

Companies In The News: Electric vehicle maker Nio said it does not currently plan to raise prices for its electric vehicles, even as its rivals such as Tesla Inc TSLA, Xpeng and BYD Co. BYDDY raised prices last week due to inflationary pressures.

Shares of heavily indebted property developer China Evergrande Group EGRNF and its other units were suspended from trading in Hong Kong on Monday, but no reasons were given for the trading halt.

Walt Disney Company DIS said that its Shanghai resort and parks will be temporarily closed from Monday, March 21, due to the COVID-19 outbreak in the city.

Shares of Chinese companies closed higher in U.S. trading on Friday as the major averages extended their rally to a fourth straight session.

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