Why Alibaba And Tesla Rivals Xpeng, Li Auto Are Sliding In Hong Kong Today

Shares of U.S.-listed Chinese tech companies traded notably lower in Hong Kong on Thursday, dragging the benchmark Hang Seng Index into negative territory after three straight days of gains.

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The Macro Factors: The benchmark Hang Seng Index was down 0.8% at the time of writing.

The index drifted lower after data showed that China’s manufacturing activity contracted in March for the first time in five months. China is grappling with a surge in COVID-19 cases that have impacted production across industries.

China’s manufacturing purchasing managers' index (PMI) fell to 49.5 in March from 50.2 in February, Xinhua reported, citing data from the National Bureau of Statistics. A reading below 50 indicates contraction.

Meanwhile, U.S. Securities and Exchange Commission chairman Gary Gensler quelled speculation about a deal with his Chinese counterpart to retain the listing of about 200 Chinese companies on American stock exchanges, as per a report by Bloomberg.

Companies In The News: Cathie Wood-led Ark Investment Management on Wednesday trimmed its stake in Tesla Inc. TSLA and acquired more shares in BYD Co. BYDDF — the Chinese electric vehicle maker backed by veteran investor Warren Buffett’s Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B).

Apple Inc. AAPL is exploring new suppliers of memory chips for iPhones — including potentially its first Chinese provider — following production disruption at a key Japanese partner, Bloomberg reported.

Shares of Chinese companies closed mixed in U.S. trading on Wednesday after the major averages ended lower.

Nio closed almost 1.3% higher in the regular trading session at $22.16 and further rose 0.5% in the after-hours session to $22.26, according to data from Benzinga Pro.

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