Alibaba, JD Fall In Hong Kong On Regulatory Worries, Nio Rivals Xpeng, Li Auto Continue To Surge

Shares of Alibaba Group Holding Limited BABA, JD.Com Inc. JD, Baidu Inc. BIDU and Tencent Holdings Inc. TCEHY fell in Hong Kong on Monday, while Xpeng Inc. XPEV and Li Auto Inc. LI traded higher.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 0.5% lower at HKD 160.30 in Hong Kong, while technology company Baidu’s shares have lost 2.0% to HKD 157.70 and e-commerce company JD.Com’s shares are down 0.6% to HKD 312.80.

Tech conglomerate Tencent Holdings’ shares have fallen 1.9% to HKD 486.00.

The tech stocks are trading lower as China’s industry regulator plans to deepen scrutiny on internet companies as part of a six-month campaign, the South China Morning Post reported.

See Also: How To Buy Xpeng Motors (XPEV) Stock

Meanwhile, electric vehicle maker Xpeng’s shares have risen 4.6% to HKD 165.40 and Li Auto’s shares traded 1.7% higher at HKD 118.10.

Shares of the EV makers are rising after it was reported that peer Nio Inc. NIO will be able to double annual production capacity at its Hefei facility in 2022 following completion of a phased upgrade, citing a report by cnEVpost.

Hong Kong’s benchmark Hang Seng Index retreated after a positive start and was down 0.5% at the time of writing. The index closed almost 1.5% higher on Friday.

Why Is It Moving? The Hang Seng Index drifted lower on Monday after data showed that China’s economy grew at the weakest pace in a year in the third quarter as the country grappled with power shortages and a slowdown in property sales.

China’s gross domestic product (GDP) grew 4.9% in the July-September period from a year earlier, slowing from 7.9% in the preceding quarter.

China is able to contain the risks posed to its economy by embattled property developer China Evergrande Group’s EGRNY debt crisis, People’s Bank of China Governor Yi Gang said, as per a report by Bloomberg.

Shares of Chinese companies closed higher in U.S. trading on Friday as the major averages in the U.S. closed firmly positive.

Alibaba’s shares closed 0.7% higher, while Nio’s shares ended higher by 3.9%.

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