Alibaba, JD Take Hang Seng Lower On China Growth Worries, Nio Rival Xpeng Strikes Gains After Reporting Deliveries

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded almost 2.1% lower at HKD 159.60 in Hong Kong, while technology company Baidu’s shares have lost 3.5% to HKD 156.40 and e-commerce company JD.Com’s shares are down 2.1% to HKD 303.80.

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

Tech conglomerate Tencent Holdings Inc.’s TCEHY shares have fallen 1.5% to HKD 473.60.

Electric vehicle maker Li Auto’s shares have lost 2.6% to HKD 127.80, while peer Xpeng’s shares are up 0.3% to HKD 182.40.

Hong Kong’s benchmark Hang Seng Index opened lower on Monday and was down almost 1.3% at the time of writing. The index closed 0.7% lower on Friday.

Why Is It Moving? The Hang Seng Index is dropping lower for a fifth straight day amid worries about slowing economic growth in China. Embattled property developer China Evergrande Group’s EGRNY debt crisis also weighed on sentiment.

China’s manufacturing activity contracted for the second straight month in October, official data released over the weekend showed.

The official manufacturing Purchasing Manager's Index (PMI) came in at 49.2 in October, down from 49.6 in September, Reuters reported, citing data from China’s National Bureau of Statistics on Sunday.

Meanwhile, China is also struggling with cope with the more infectious delta variant of COVID-19. Ruili, a city in remote southwestern China that shares a border with Myanmar, has witnessed four lockdowns in seven months, Bloomberg reported.

Shares of Chinese companies closed notably lower in U.S. trading on Friday even as the major averages in the U.S. closed at record highs.

Alibaba’s shares closed 2.9% lower and Nio’s shares ended lower by almost 3.4%.

Xpeng stood out as an exception after reporting a 233% year-over-year rise in deliveries for October late Sunday.

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