Alibaba Down 4.5%, JD Down 4.9%: What's Driving Hong Kong Markets Lower 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 — traded in red in Hong Kong on Wednesday (local time).

The stock of these U.S.-listed Chinese tech giants had a subdued ending in U.S. trading on Tuesday.

How Big Tech Stocks Are Faring In Hong Kong Today

Macro Factors: Overall, the Hang Seng Index was trading 2% or 390 points lower at 10:47 a.m. Hong Kong time. The downfall came amid subdued global cues.

The financial hub and China’s biggest city Shanghai experienced a stricter lockdown with the rapidly rising COVID-19 cases. There are concerns over "how the lockdowns could further impact the economy, given that many are already expecting China to fall short of their GDP target,” Paul Pong Po-lam, managing director of Pegasus Fund Managers in Hong Kong, told the South China Morning Post.

The Caixin China PMI services index also hit its lowest in March since the beginning of the pandemic in February 2020, missing the analyst consensus of 49.7, noted SCMP.

U.S. indices Nasdaq and Dow Jones also closed in red on Tuesday as investors fear Fed rate hikes would slow the economy. The tech stocks were among the biggest losers of the day in the U.S. trading.

See Also: Cathie Wood Says 'Fed Seems To Be Playing With Fire'; Aggressive Interest Rate Hikes Could Be A 'Mistake'