Nio Down 1.6%, Xpeng Falls 3%: Why Hong Kong EV Stocks Are Slipping Today

Shares of U.S.-listed Chinese electric vehicle makers Nio Inc NIO, XPeng Inc XPEV, and Li Auto LI traded in red on Wednesday in Hong Kong as the local stock exchange retreated from a two-week high.

This came after the stocks of the Chinese EV makers ended mixed in U.S. markets on Tuesday — Nio and XPeng ended in the green, while Li Auto shed about 2%.

The Macro Factors: The benchmark Hang Seng Index shed 1.21%.

Hong Kong's official data showed that the economy shrank by 4% during the first quarter of 2022. This was worse than what analysts had expected, as businesses were hammered by the fifth wave of COVID-19 and rising infections across the border in mainland China. The contraction is Hong Kong's first since the fourth quarter of 2020.

Investors will also be looking ahead to the U.S. Federal Reserve's interest rate decision expected later stateside. Elsewhere, South Korea's Kospi rose 0.1%, while the ASX 200 in Australia gained 0.19% and SGXNifty in Singapore gained 0.20%. 

Company In News: Deutsche Bank has cut its price target on Li Auto ahead of the company's first-quarter earnings report due next week. Analyst Edison Yu's team lowered their price target on Li by $6 to $28 but maintained a "hold" rating on the company.

Photo courtesy: Nio