Alibaba, Baidu Dip In Hong Kong On COVID-19 Outbreak Concerns While Nio Rivals Xpeng, Li Auto Strike Gains Following Tesla Deal

Shares of Alibaba Group Holding Limited BABA and Baidu Inc. BIDU traded lower in Hong Kong on Tuesday, while electric vehicle makers Xpeng Inc. XPEV and Li Auto Inc. LI surged.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded almost 1.5% lower at HKD 171.40 and technology company Baidu’s shares have also lost 1.5% to HKD 169.70 in Hong Kong, while e-commerce company JD.Com Inc.’s JD shares have gained 0.2% to HKD 325.60.

Alibaba has lost $344 billion in market capitalization over the past year following a crackdown on China’s tech sector, according to a report by Bloomberg.

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

Electric vehicle maker Xpeng’s shares have surged 12% to HKD 196.00 and peer Li Auto’s shares traded 6.9% higher at HKD 134.80 following Tesla Inc.’s TSLA deal to supply 100,000 electric vehicles to car rental firm Hertz Global Holdings Inc. HTZZ.

Xpeng said at its annual Tech Day on Sunday that its PILOT 4.0 full-scenario advanced driver assistance system (ADAS) will roll out in the first half of 2023. The company also unveiled the flying car design developed by its affiliate urban air mobility company HT Aero.

Tech conglomerate Tencent Holdings Inc.’s TCEHY shares are trading almost flat at HKD 504.50.

Hong Kong’s benchmark Hang Seng Index drifted lower after a positive start and was down 0.4% at the time of writing. The index closed flat on Monday.

Why Is It Moving? The Hang Seng Index fell on Tuesday amid lingering worries about China’s real estate sector and as investors monitored the rising Covid-19 cases in the country.

Shares of property developers traded weak following news that Beijing plans to introduce a property tax program in selected regions as part of a five-year trial.

Modern Land China Co. failed to repay either the principal or interest on a $250 million bond due Monday, becoming the latest builder to miss debt payments, Bloomberg reported.

Shares of Chinese companies closed mixed in U.S. trading on Monday even as the major averages in the U.S. ended in positive territory.

Alibaba’s shares closed almost 0.9% lower, while Nio’s shares ended higher by almost 6.2%.

Read Next: How Much Of Apple's Revenue Is At Risk From China's Energy Crisis?