Alibaba Rises Nearly 4%, While Tesla Rivals Nio, Xpeng Slip: What's Weighing On Hong Kong Markets Today?

Shares of U.S.-listed Chinese tech companies traded mixed in Hong Kong on Monday, while the Hang Seng Index recovered after a weak start.

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The Macro Factors: The benchmark Hang Seng Index was up 1.3% at press time, following a weak start. The index closed almost 2.5% lower on Friday.

The market slipped in early trading after authorities in Shanghai ordered a phased lockdown of the financial hub from Monday to curb the spread of a COVID-19 outbreak, the South China Morning Post reported.

Upbeat fourth-quarter revenue from food delivery giant Meituan MPNGY on Friday — despite China’s regulatory crackdown — boosted sentiment.

Companies In The News: Meituan’s shares surged more than 14% after the company reported 30.6% year-over-year growth in fourth-quarter revenues to RMB 49.5 billion ($7.9 billion). However, net loss for the quarter widened to RMB 5.3 billion ($840 million) from RMB 2.24 billion a year ago.

Cathie Wood-led Ark Invest ETF initiated a position in Nio on Friday, buying 420,057 shares in the Chinese electric vehicle maker — estimated to be worth $8.36 million.

Meanwhile, Xpeng is scheduled to announce its fourth-quarter earnings results later today.

Tesla Inc. TSLA has suspended production at its Shanghai factory for at least a day after the city started the lockdown, Bloomberg reported.

Shares of Chinese companies closed lower in U.S. trading on Friday even as the major averages ended mixed.

Nio closed 9.4% lower in the regular trading session at $19.92 and further lost 0.6% in the after-hours session to $19.80, according to data from Benzinga Pro.

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