Why Alibaba, Other Tech Peers Are Sinking In Hong Kong Today

Shares of U.S.-listed Chinese tech giants Alibaba Group Holding Ltd BABA, Tencent Holdings TCEHY, JD.Com JD, and Baidu Inc BIDU continued to sink in the Hong Kong market on Monday.

Macro Factors: The overall Hang Seng Index retreated 2.65% with other Asian markets on weak global cues after the sell-off in U.S. markets on Friday.

Shanghai's composite index fell 2.51%, while Japan's Nikkei slipped by nearly 2%.

This came amid rising COVID-19 cases in China's capital Beijing after Shanghai, where enforcement of a strict "zero-COVID" policy has drawn global attention. The world's second-largest economy has been struggling to completely stamp out the pandemic as increasing infections spurred worries of a grim situation ahead.

Meanwhile, U.S. crude futures declined 2.78% to trade at $99.29 per barrel on Monday, while Brent crude futures slipped 2.63% to $103.85 per barrel.

Company In News: Alibaba's supermarket chain Freshippo said it was adding more couriers to meet high demand in Shanghai but was yet to catch up with the rising needs of locked-down residents.

The Beijing Municipal Sports Bureau and JD.com will join hands to invest an annual capital of 100 million yuan from 2022 to 2025 to support citizens' fitness and sports-related consumption activities.

Web search firm Baidu launched digital souvenirs of the soil retrieved from the Moon by a Chinese spacecraft for online collectors and fans to mark China Space Day, according to the Global Times.

According to Manuel Muehl, an analyst at Frankfurt-based DZ Bank AG, there is further pain ahead for Chinese stocks as economic softness and regulatory woes continue to ward off global investors.