Alibaba, JD And Nio Rivals Xpeng, Li Auto Drop Lower In Hong Kong Amid Rekindled US-China Tensions

Shares of Alibaba Group Holding Limited BABA, Baidu Inc. BIDU, JD.Com Inc. JD, Tencent Holdings Inc. TCEHY, Xpeng Inc. XPEV and Li Auto Inc. LI traded notably lower in Hong Kong on Wednesday amid worries about a flare-up in U.S.-China tensions.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 3.7% lower at HKD 163.30 in Hong Kong, while technology company Baidu’s shares have lost 4.5% to HKD 161.90 and e-commerce company JD.Com’s shares are down 4.4% to HKD 311.20.

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

Electric vehicle maker Xpeng’s shares have slid 5.7% to HKD 179.40 and peer Li Auto’s shares traded 1.4% lower at HKD 131.20.

Tech conglomerate Tencent Holdings Inc.’s TCEHY shares are down 3.6% to HKD 483.80.

Hong Kong’s benchmark Hang Seng Index was down 1.5% at the time of writing. The index closed almost 0.4% lower on Tuesday.

Why Is It Moving? The Hang Seng Index is extending losses from the previous session amid worries about rising U.S.-China tensions. Embattled property developer China Evergrande Group’s EGRNY debt crisis also weighed on sentiment.

The U.S. Federal Communications Commission said it has revoked the license of a China Telecom subsidiary to operate in the nation, citing national security concerns.

U.S. Secretary of State Antony Blinken said in a statement on Tuesday that Taiwan’s exclusion from the United Nations “undermines the important work” of the international body.

Chinese authorities have urged billionaire and China Evergrande Group founder Hui Ka Yan to use his personal wealth to pay down the company’s debt, Bloomberg reported.

Shares of Chinese companies closed notably lower in U.S. trading on Tuesday even as the major averages in the U.S. ended modestly higher.

Alibaba’s shares closed 3.5% lower, while Nio’s shares ended lower by 1.9%.

Read Next: 'Stop The Modern Day Slavery': NBA's Enes Kanter Calls Out Nike, LeBron And More Over China 'Hypocrisy'