Alibaba, Nio Fall Over 4%: Hang Seng Hits 13-Year Low As Worries Grow Over China Economic Data Delay

Hong Kong stocks opened in the red on Thursday, with the benchmark Hang Seng losing 2% to hit a 13-year low, as investors and traders continued to worry about China’s delayed economic indicators and a rise in COVID-19 cases. Shares of Alibaba, Tencent and Meituan lost over 4% in opening trade, while Nio and Baidu fell over 7%.

Macro News: Chinese President Xi Jinping, in his report to the 20th Communist Party Congress, has said the country will keep income distribution and the means of accumulating wealth well-regulated, according to the South China Morning Post.

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Hong Kong leader John Lee has pledged the creation of two high-level bodies to woo overseas talent and companies to tackle the brain drain brought on by the emigration wave, reported the South China Morning Post.

Company News: Tencent increased its buyback outlays to about HK$600mn ($76mn) a day last week, reported Financial Times.

Nio co-founder and president Qin Lihong said the company is considering offering a buy option in Europe, reported CnEVPost.

Top Gainers and Losers: WuXi Biologics (Cayman) Inc. and Li Ning Company Limited were the top losers among Hang Seng constituents, having shed over 7% each. Hengan International Group Company Limited was the only gainer, having risen over 1.7%.

Global News: U.S. futures traded in the red on Thursday morning Asia session. The Dow Jones futures were down 0.17% while the Nasdaq futures lost 0.99%. The S&P 500 futures were down 0.53%.

Elsewhere in Asia-Pacific, Australia’s ASX 200 was down 1.14%. Japan’s Nikkei 225 lost 1% while China’s Shanghai Composite index was down 0.40%. South Korea’s Kospi fell 1.29%.

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