Alibaba Charts Recovery, Leading Hang Seng Higher — Nio Rivals Li Auto, Xpeng Continue To Strike Gains On EV-Sales Optimism

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 1.8% higher at HKD 165.90 in Hong Kong, while e-commerce company JD.Com’s shares are up 1.5% to HKD 322.60 and technology company Baidu’s shares have risen less than 0.1% to HKD 167.80.

It was reported on Monday, citing Chinese media outlet Caixin, that Alibaba plans to launch its first custom-designed server processor to power its cloud computing business later this week.

Tech conglomerate Tencent Holdings’ shares have lost almost 0.4% to HKD 495.20 on Tuesday.

See Also: How To Buy Alibaba (BABA) Stock

Meanwhile, electric vehicle maker Xpeng’s shares have risen 1.9% to HKD 169.20 and Li Auto’s shares traded 1.1% higher at HKD 118.60.

The automakers are extending gains to a fourth day following strong sales of electric vehicles in mainland China in September.

Hong Kong’s benchmark Hang Seng Index was up 1.3% at the time of writing. The index closed 0.3% higher on Monday.

Why Is It Moving? The Hang Seng Index is rising for the third straight day on Tuesday, fuelled by gains in Alibaba and other tech stocks.

Nevertheless, investors remained cautious amid worries about debt-laden China Evergrande Group’s EGRNY debt crisis.

Property sales in China fell 20% in September from a year ago as the Evergrande debt crisis sapped risk appetite, the South China Morning Post reported, citing BCA Research.

Property developers Sunac China and Kaisa Group said they have made coupon payments on bonds this week, Reuters reported Tuesday.

Shares of Chinese companies closed mostly higher in U.S. trading on Monday even as the major averages in the U.S. turned in a mixed performance.

Alibaba’s shares closed 0.7% lower, while Nio’s shares ended higher by 5.0%.